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Greece Defence and Security Report Q1 2008Published by: Business Monitor International Published: Feb. 20, 2008 - 47 Pages Table of Contents
AbstractWith the New Democracy (ND) government of Prime Minister Costas Karamanlis re-elected inSeptember 2007, albeit with a smaller majority, BMI’s newly released Q108 Greece Defence andSecurity Report confirms that prospects continue to be good for the Hellenic nation. Domestically, thegovernment will enter a more difficult stage in its reform process, but its good economic record shouldallow greater expenditure in its defence industry. Despite some continuing tensions, Greece’s relationshipwith neighbouring Turkey has improved substantially and Karamanlis is expected to visit theneighbouring country in early 2008 - the first visit of its kind by a Greek Prime Minister in four decades.The Greek defence industry’s good relationship with the US, plus NATO and EU membership shouldensure that it continues to benefit from a significant number of subcontracts and plays an important role inthe exporting of arms to the Middle East and emerging European countries. There appear to be noimmediate threats on the positive path that Greece, a long-term member of Europe, is steering.Government reforms are boosting consumer and business confidence, and the economy is expected tocontinue growing in 2008.In early December 2007, Greece agreed to buy 415 BMP-3 fighting vehicles from Russia, worth anestimated EUR1.7bn (US$2.5bn). The deal was due to be confirmed by the State Defence ProcurementCouncil (KYSEA). Defence spending in Greece runs at around 3% of GDP, one of the highest levels inthe EU, partly because of a policy to keep an arms balance with Turkey. Greece has a 10-year defenceprocurement plan worth a total of EUR27bn in 2006-2015, including the purchase of fighter planes.Russian-built Sukhoi SU35s are being considered among other models to meet the country’s need for 30fourth-generation fighter jets in a contract worth EUR4bn expected to be awarded during 2008. Greece’srelations with Russia have improved in recent years, with a joint oil pipeline project launched in 2007.Russian President Vladimir Putin visited Greece three times in 2006-07. Greece’s military expenditure has remained at a steady level over recent years, but decreased over 2005.Growth will be limited by Greece’s ongoing EU obligation to bring its budget deficit down to under the3% GDP limit applied to eurozone countries. The Greek defence industry continues to be involved in themanufacture and export of ammunition of all classes. Its imports, although slow over the last year or two,are expected to recover over the next couple of years. However, the arms trade continues to be affected bycuts to the defence budget. Get Full Details About This Report >> |
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