The selection of missiles for the Hellenic Dome is in the final phase. The Israeli companies Israel Aerospace Industries (IAI) and Rafael have submitted bids.
The final bids from the two Israeli companies, IAI and Rafael, for the formation of the anti-missile and anti-drone shield that will cover most of Greek territory are expected by the end of the week.
Then, after being evaluated both operationally and financially, with a cost limit of 2 to 2.5 billion euros, they are expected to be announced to Parliament by Defence Minister Nikos Dendias later this month, along with the entire equipment package for the next 10 to 12 years.
The financial restrictions are necessary despite the fact that, for all of Europe, after the war in Ukraine and the election of Donald Trump in the US, the need to increase defence spending has been set as a priority. As the Ministry of National Defence has pointed out, Greece will have to manage high obligations of 12.8 billion euros for the 2024-2035 period.
As Dendias has stated, he had to prioritise and plan an interdisciplinary list of 852 independent programs with a budget of 53 billion euros. The 65 armament programs will eventually proceed.
It should be noted that the two companies, namely IAI with the BARAK MX for mainland Greece, which will form the backbone of the Hellenic Dome, and Rafael with the Spyder All in One for the Aegean islands, have already submitted the first offers to the Hellenic National Defence General Staff.
SIBAT, the Defence Cooperation Directorate of the Israeli Ministry of Defence, sent the first aggregated responses with the prices for the three different systems (including David Sling), according to New Money, which ultimately exceeded 6 billion euros. This is a huge difference from the initial 2 billion euros that had been budgeted.
Business developments and collaborations
There have been intense business developments throughout the past period, with IAI mainly taking the initiative. The Israeli company, which is making its presence felt in Greece as time goes by, seems to have two serious advantages.
First of all, BARAK has started to be chosen by more and more countries due to its strong performance (according to New Money, three different countries have chosen BARAK in the last year).
According to recently published information, Cyprus has also begun using the BARAK MX, offering anti-ballistic missile defence and coverage throughout the island, with two to 150 kilometres of range.
At the same time, BARAK has already been acquired by other countries, such as Morocco and India, who also cooperated in its development. According to various publications, the Netherlands recently selected it for its naval air defence.
It was recently announced that India has additionally purchased more than 70 MRSAM (medium-range surface-to-air missiles) systems from Bharat Dynamics, IAI partner in developing the Indian version of the BARAK 8 air defence system. The contract value is 29.6 billion rupees (about $340 million).
Greek companies
As in the case of India, IAI plans to have a wide range of cooperation with the domestic defence industry and Greek companies, ensuring direct supply through production lines. In this context, the actions of the Israeli company did not go unnoticed, which, after the memorandum of cooperation with Hellenic Defence Systems, proceeded with similar ones with Hellenic Aerospace Industry and MILTECH while continuing contacts and discussions for cooperation with other Greek companies.
Of course, the highlight of all was the developments at Intracom Defence, which was acquired 1.5 years ago by IAI and announced that Michalis Tsamaz, one of Greece’s most well-known and distinguished business executives, is taking over the position of chairman.
At the same time, IAI increased Intracom Defence’s share capital by 20%, indicating its decision for the Greek company to proceed transitioning to the new era of the defence industry.
In fact, as Mr. Tsamaz stated, specifying the goals of the company’s new era: “Our goal is to continue to pioneer, strengthening both the technological development of our country and its defence armour. For me, it is a national duty to ensure that a Greek defence technology company will remain at the forefront of innovation, contributing to the formation of our country’s strong and self-sufficient defence ecosystem.”
READ MORE: Middle East Crisis Should Not Undermine India-Middle East Economic Corridor: Greek Foreign Minister.