While the concern and interest of many remain focused on the future of the Greek economy after the end of the Recovery Fund, the next major investment arena for our country is already opening up: funds, credits and investments that will exceed €2.5 billion over the next 4–5 years from SAFE, the EIB, as well as non-allocated resources of the Recovery and Resilience Facility and the NSRF, are triggering big business opportunities in defense and beyond.

The doctrine is changing: from green development we are moving towards the strategic autonomy of the European Union. And from the green Recovery Fund, which ends in August 2026, we are moving to the European Defense Program.

With one critical detail, however: the new programs will not finance only weapons, aircraft, frigates and cannons, but also many other dual-use projects and actions that will serve both the military and ordinary citizens (e.g. bridges, hospitals, etc.). With the new framework, many Greek companies—if they take advantage of this flexible and smart investment opportunity—will be able to expand their activity in the Greek and international markets in the coming years, especially if they follow the example of Finland’s Nokia, which once made boots and car tires for the army but managed to evolve and shine decades later as a European tech giant.

Military version of the objectives

Geopolitical instability is no longer a theoretical scenario, but the main driver of economic policy in Europe. “The summer that just passed may have been the last peaceful one,” declared German Defense Minister Boris Pistorius just days ago, describing a conflict between NATO and Russia as possible before 2029. On the very same day, the Chief of the General Staff of the Polish Armed Forces, General Wiesław Kukuła, warned that his country is essentially in a “pre-war phase,” fueling speculation—and not only that.

Regardless of whether something happens in practice, the path for an “invasion” of investments has already opened in Greece: on November 11, Law 5246/2025 was published in the Government Gazette, providing €150 million in the form of super-deductions (with a 100% increase and up to 50% of the investment) for projects that involve not only the construction of warplanes, military combat vehicles, weapons and ammunition, but also the construction of:

• motor vehicles, helicopters, drones and related machinery,
• electrical and electronic equipment for motor vehicles,
• parts and components for motor vehicles, etc.

Thus, it does not cover only strictly military activities, but also many collateral ones that now have new growth prospects in our country. Eligible beneficiaries are entities with a registered office or branch in Greece, regardless of size, provided they start their investment plan within the years 2026, 2027 or 2028.

War Fund

But the €150 million is only the beginning! Under the guidance of the EU, two new, powerful funding instruments are being created: SAFE (Security Action for Europe) and the brand-new European Defence Industry Programme (EDIP).

Greece has already made an indicative allocation amounting to €788 million solely from SAFE. National investment plans for defense have been submitted, with the first loan agreements expected in early 2026.

EU military bridge: Unallocated RRF and NSRF resources change target

As the end of the Recovery and Resilience Facility (RRF) approaches threateningly (this coming August), the Commission acknowledges—explicitly in its Autumn Economic Forecasts—that growth will slow sharply in Europe after 2026 without this funding stream, and therefore it already has the bridge solution ready.

The solution comes from the recent (October) political agreement between the European Parliament and the Council on the European Defence Industry Programme (EDIP), which begins with an initial budget of €1.5 billion (2025–2027): member states will be allowed to transfer unallocated resources (loans and grants) from the Recovery Fund directly into projects supporting EDIP.

The goal is twofold:

• it solves the problem of losing billions of euros from the RRF, faced mainly by countries such as Italy and Spain, but to a lesser extent—mainly loans—also Greece.
• it injects fresh money into the EU’s new priority: the defense industry and the economy more generally.

More than €2.5 billion on the table

SAFE and EDIP are not coming alone. A major development is the 180-degree shift of the European Investment Bank (EIB). The investment bank, which until recently avoided the defense sector, now considers it—according to its president—“at the core of its mission.”

The EIB recently tripled its available package for European defense and security to €3 billion. Greece, along with 18 other countries, spearheaded this policy change. And the results are immediate: according to sources, EIB leadership has already held meetings with Greek companies in the sector, explaining its new, much more flexible funding policy.

If the €788 million from SAFE, the €1.5 billion from EDIP, the EIB loans, and the redirected funds from the RRF and NSRF are added together with resources from the European Defence Fund (EDF), the total for Greece far exceeds the €2.5 billion target over a five-year horizon. And this is where the real interest begins.

Dual use, not just cannons

As reflected in the draft state budget for 2026, these billions are not going only to frigates and fighter jets. The game changes as the government and the EU invest in dual-use and in the domestic added value of these investments.

Greece’s ambitious national armaments program, worth over €25 billion, includes a critical clause: at least 25% of the projects must involve participation from the Greek defense industry.

This does not simply mean the Hellenic Defense Systems or the Hellenic Aerospace Industry (EAS and HAI). It means, for example:

• Infrastructure for everyone: Upgrading a regional airport or new bridges, road networks, and hospitals in border areas for military readiness also benefit local residents.
• Jobs for everyone: The support targets SMEs in the defense supply chain. A tank is not just a cannon—it contains thousands of components: the bolts produced by a local workshop, the vehicle tires from a Greek factory, cables, electronic boards, cybersecurity software will be produced in Greece as a priority.
• Cutting-edge technology: The new funds (such as EIB loans) explicitly target dual-use products: drones, satellite communications, artificial intelligence software, etc. A company developing a drone for border surveillance today may sell the same drone tomorrow for crop monitoring or firefighting.