This is mainly due to weaknesses in the areas of organisation, marketing, programming and labour relations; also to the low productivity, the high administrative costs, overborrowing, as well as to the large fluctuation of the orders. The solution of these problems constitutes the necessary condition for the harmonisation of the Hellenic defence industries with the requirements and trends of the international market.
Under the current working conditions, the Hellenic Defence Industry offers the following services:
- Maintenance - repair - production of structural sections and engine parts for aircraft and helicopters.
- Production of parts and upgrading of missiles.
- Production of electronic sub - assemblies.
- Production of small arms, infantry heavy weapons, anti-aircraft systems, etc.
- Production of aircraft droppable fuel tanks.
- Production of military clothing.
- Production of various types of ammunition and charges for special projectiles.
- Co-production of various types of vehicle and armoured vehicles.
- Production of state of the art telecommunication, observation and vision devices.
- Building and upgrading of ships.
- Maintenance and upgrading of tanks, guns and weapon systems.
- Production of spare-parts.
Despite the fact that the domestic production units inherited high debts from previous years, there has been a gradual return to stability during the last two years and in some cases even to profit. Particularly in 1996, and according to estimates also in 1997, the Hellenic defence industry turn-over has shown a stable rise. A similar positive trend is also seen in the exports, a fact that depicts the success of an "aggressive" marketing programme, taken up during the aforementioned period.
Although the sector of domestic defence industry cannot yet be described as competitive, the prospects for development and expansion in supplying the Armed Forces are realistic. For this reason a systematic and collective effort is required both from the state bodies as well as from the management and workers in the Hellenic defence industry, in order to make it profitable.
Finally, the development of a strong network of bilateral or multilateral cooperations with countries with an advanced defence industry, is expected to significantly contribute to reaching the target of adjusting with the contemporary tendencies of the European and international market.
2.1. The "hellenisation" of supplies
A continuous point of reference in the MOD's procurement policy during 1996-1997 is the gradual hellenisation of supplies, in such a way that the domestic defence industry becomes the main supplier of weapon systems to the Hellenic Armed Forces. The fact that the Hellenic defence industry absorbs only 5% of the funds available for military equipment for the Armed Forces results in a high degree of foreign dependence and, at the same time, in a huge outflow of foreign currency. On the other hand, the transformation of the industry's production units to reliable suppliers of high technology weapon systems in-country and abroad will bring multiple benefits to the Armed Forces defence capability, as well as to the Greek economy.
The attempt to support the domestic defence industry is expressed through particular action at statutory, management and technological research level. One should mention Law 2303/95, on the "Non-enforcement of penalty clauses and interest", according to which the state defence industries are relieved of their accumulated losses of previous years. Thus, the industry's units are released from unbearable financial costs. In addition, according to the Presidential Decree, 439/95 concerning the "General Armaments Directorate", the restructuring efforts of the defence industry is assisted and the processes of co-ordinating their productive abilities with the needs of the General Staffs are ensured. Of special importance for the viability and improvement of the competitiveness of the industry is the attempt to enforce the practice of five-year contracts for General Staff orders, which shall allow them to rationalise their productive process.
On a managerial level, the attempts have been focused on the drawing up of operational plans, based on the 1996-2000 EMPAE as well as on increasing its capability of entering into the international market of military equipment.
In the context of the above-mentioned attempts, a closer cooperation with research centres (military or civilian) is sought, in order that new technology be incorporated both into the production process as well as into the products themselves.
In the attempt to upgrade the defence industry products, international cooperation plays an important role through the transfer of accumulated knowledge and experience from abroad.
Greek defence industry is called upon to confront with great challenges, especially in the international arena. The Ministry's target is that the defence industry be gradually transformed into a development booster and become a field upon which technological and research programmes are materialised, while the results of those programmes are used in other areas, in addition to national defence. The Hellenic defence industry plans to become an area for investment and development of a huge reserve of scientific knowledge.
Efforts for the integration of the E.U. and the formation of a common European Security and Defence Identity are rapidly advancing. Our country will be called upon to respond to the challenges of a unified European armaments market, with the lifting of every form of trade protection, despite the particularities due to its geopolitical position. There is therefore an imperative need to participate in international cooperative projects, especially within the WEAG (Western European Armament Group), so that Greece can accelerate the development and improvement process of its competitiveness with regard to its industrial infrastructure, through the assimilation of valuable experience from the industrially more advanced countries.
For this reason, our country actively participates in a long term research programme, called EUCLID (European Co-operation For Long Term In Defence).
Similar programmes in the area of research and technology as well as in the co-production of defence equipment are being materialised both in the framework of NATO and through other bilateral or multilateral agreements.
3. THE NEW MILITARY INSTALLATIONS
National defence priorities which imposed the new organisational structure of the Armed Forces, that was recently adopted by the Government Council on Foreign Affairs and Defence, force us to prepare land-planning studies and seek solutions, which will meet the requirements for large, modern and operational camps, thus achieving the required operational readiness level.
At the time of the initial establishment of the camps, the built-up areas were obviously of smaller size, whereas the boundaries of the urban areas were very limited compared to the present ones. The camps were then established on the periphery or outside the urban areas, at positions which not only met the requirements of the camps, but were also compatible with the use of land of the specific area.
Because of the disorderly post-war model of development (centralisation, urbanisation, etc.), the cities spread out at a fast, mostly uncontrolled pace, without rational distribution and organisation of the use of land. A direct consequence of this process was the containment of the camps within the urban areas of the cities and - in most cases - in immediate vicinity with uses of land that are incompatible with the purpose, the functioning and the requirements of the camps.
The cost of establishing new, large, modern camps is considerable, estimated to amount to tens of billion drachmas. This cost cannot be borne by the Armed Forces and the national budget, under the present financial conditions, not even in a long-term planning.
For the above reasons, promotion of a complete, nation-wide programme was adopted, for the relocation of camps, upgrading, at the same time, the urban areas.
The financing of this programme will be implemented through financial resources, which will come from development of the existing in-cities military installations, a development that is planned being always in mind that the further goal is to maximise the social profit.
The programme of taking military installations away from urban centres and their relocation to new areas includes camps all over the country, its main goal being to meet the present and long-term MOD operational requirements on national defence, whereas, at the same time, contributing to the improvement of the environmental conditions, the upgrading of living standards and the restoration of the continuity and regular functioning of the urban area. A framework of co-operation has been agreed upon among the Ministry of National Defence, the Ministry of Environment, Country Planning and Public Works and the A' and B' level Local Authorities Organisations concerning the planning and implementation of this programme.
For the fulfillment of the above goals, the National Defence Fund, that has the ownership of the releasable camp areas, and the Ministry of National Defence, in the context of its responsibility for planning the national defence strategy, will establish an autonomous, self-reliant and independent body, in the form of a Legal Entity of the Private Sector governed by the regulations of the Civil Code and supervised by the Minister of National Defence.
This programme constitutes an extensive and efficient intervention, that offers the capability to significantly upgrade the military installations and to contribute to social development.
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