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THE GREEK DEFENCE BUDGET – EXCESSIVE OR NECESSARY

The economic situation in Greece is dire. Walk the streets of Athens and you will see Greeks digging in trash cans for food. With no jobs and withdrawal limits imposed on locals, hard cash is elusive and hard to come by. Those situated outside defence circles will therefore be surprised (and perhaps a little shocked) to discover that according to NATO Greece is a large defence spender with 2.38% of its GDP for 2015, second to the United States who spends 3.59 % of its GDP on defence.

Despite the austerity measures, defence launches and acquisitions continue and include the Hellenic Navy P-3B maritime patrol aircraft modernization and upgrade programme, the commissioning of the HS Katsonis – a Type 214 submarine (Greece now operates 11 submarines), and funding for 10 ex-U.S. Army Boeing CH-47D Chinook helicopters. Military personnel salaries, for the most part, have been exempt from cuts however in July 2016, a proposal surfaced aiming to cut salaries by 200 to 400 Euros per month depending on rank. Greek military leaders are concerned that salary cuts could affect morale, and coupled with the current economic climate, may fan the fire of a number of grievances.

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Greece is positioned strategically in the Balkan Peninsula with ease of access to three continents. It borders Bulgaria and the Former Yugoslav Republic of Macedonia to the North, Turkey to the Northeast, Albania to the Northwest, and three seas – the Ionian Sea to the West, the Mediterranean Sea to the South, and the Aegean Sea to the East. There is no doubt that with the current refugee crisis gripping Europe security concerns have escalated. According to John Nomikos, Director of the Research Institute for European and American Studies (RIEAS), Greece is in the middle of what he calls a “security thunderstorm”. According to the UN Refugee Agency, in 2016 Greece recorded 164,730 refugee sea arrivals with 856,723 in 2015. Mr Nomikos added that the increase in transnational organized crime, human trafficking, and the Islamic terrorist threat as well as the disintegration of Greek social cohesion requires drastic reform and restructuring of the Greek defence and intelligence community with increased cooperation amongst agencies.

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Refugee crisis aside, one has to wonder if the base of Greece’s defence spending may still be rooted in the decades-long conflict with Turkey compounded by the Turkish occupation of Cyprus in the 70s. You can ask any Greek why their defence spending is high and they will tell you that Greece will not let the events of the past recur in future. Turkey has a habit of unnerving the Greeks by violating their airspace without submitting flight plans and at times with armed fighter jets, keeping them on constant alert. For instance, on 15 February 2016, Turkish fighter jets violated Greek airspace 22 times within a 24-hour period.

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Greece is often overlooked because of its current economic crisis however the significance of its geostrategic location instantly establishes it as a key defence player. Evidence of this lies in Crete, which has assumed great strategic significance for NATO and the U.S.

Crete hosts the following NATO operational and training infrastructure:

  • NATO Maritime Interdiction Operational Training Center (NMIOTC).
  • NATO Missile Firing Installation (NAMFI) – with a range of more than 14.440 Km2 of ground, sea, and air space.
  • NATO FORACS Greece (NFG) near Souda Bay where all multinational operational units joining NATO formations have to use FORACS to ensure interoperability for joint-service and multi-national operations. The site performs precision dynamic calibration measurements of the accuracy of target and navigation sensors (sonar, fire control, navigation radar, electronic surveillance, electro-optic sensors, inertial navigation systems, etc.) against common geographical references to satisfy national requirements and meet NATO material readiness standards.

Crete hosts the following U.S. operational infrastructure:

  • The U.S. Naval Support Activity (NSA), providing operational support to U.S, allied, and coalition forces.
  • The U.S. Naval European Meteorology and Oceanography Detachment

As a gateway to Europe, the Middle East, North and Sub-Saharan Africa, and Southwest Asia, Greece’s defence budget (if spent wisely), is essential in protecting not only its territory, but that of its allies.

 

Written by Sylvia Caravotas (Satovarac Consulting) for OIDA

 

PROJECT BIRO – WHAT IT MEANS FOR PARTNERSHIPS AND THE AFRICAN COASTLINE

The South African Navy’s, Project Biro, has attracted the attention of local and foreign shipyards that are currently competing to build three inshore patrol vessels (IPVs) and three offshore patrol vessels (OPVs) by 2024/25 at an estimated cost of R6 billion. The patrol vessels specifications include armament with a 30mm gun for inshores (IPVs) and 76mm gun for the offshores (OPVs). According to Jane’s Defence Weekly, South African Navy sources stated that the new vessels will replace the strike craft and minehunters acquired in the 1970s and 1980s, and will undoubtedly boost South African maritime efforts.

Armscor, the South African state-owned entity who is in the process of evaluating tender submissions, strictly requires that the vessels be built in a South African shipyard with 60% local content, providing foreign companies the opportunity to access the lucrative African market by partnering with South African shipyards.

There have been several acquisitions within the South African shipyard industry most notably for The Nautic Group, specialists in the design and construction of highly customised ships. Paramount Group, a global leader in the defence industry, acquired a majority stake in The Nautic Group. In 2014, Nautic acquired Veecraft Marine to consolidate the manufacturing of naval vessels in Cape Town, South Africa. Therefore Paramount Naval Systems and Veecraft are now subsidiaries of The Nautic Group who has partnered with a number of foreign shipyards for Project Biro.

For Project Biro, Paramount Naval Systems is teaming up with Spanish company Navantia and Australian company Austal. Navantia is offering its three offshore patrol vessels (OPVs) also known as the Avante 3000 (maritime action vessel) or BAM design. The vessels will be built in South Africa combining Spanish expertise and design with a South African cost structure. The Avante 3000 has an overall length of 93.90 metres, a maximum beam of 14.20 metres, a full load displacement of 2 840 tons, and a helicopter flight deck. Austal is offering its three inshore patrol vessels (IPVs) based on the Austal Cape Class patrol vessels, which are currently used for maritime border security by the Australian Border Force.

French company DCNS has partnered with Paramount Naval Systems to offer the Gowind offshore patrol vessels (OPVs) for Project Biro. DCNS has a long naval history for maritime protection missions. James Fisher, CEO of Nautic, stated that: “The Gowind is the most technologically advanced of all vessels proposed for the South African OPV programme.” However, it is unclear as to whether DCNS is still competing for Project Biro as the company no longer views South Africa as a strategic country. It seems as if the partnership signed between both companies remains in place for the rest of the continent.

German company, Abeking & Rasmussen, has partnered with DCD Marine to offer a 66-metre-long vessel for the offshore patrol vessel (OPV) component based upon the OPV Bad Bramstedt. For the inshore patrol vessel (IPV) component they are offering a 25 metre long SWATH (Small Waterplane Area Twin Hull) vessel. SWATH’s innovative hull delivers maximum performance in rough seas. Abeking & Rasmussen are set to build the first ship in Germany to ensure all specifications are met with the remainder of the vessels to be built in South Africa.

Lurssen, another German Company, has partnered with Southern African Shipyards to offer its Lurssen Patrol Vessel PV 80 with a length of 80 metres, a speed of 22 knots, a displacement of 1 486 tons, and a helicopter landing deck. Lurssen has a sound reputation spanning more than 140 years in the shipbuilding industry.

Other shipyards competing for Project Biro include Damen, Vard (Fincantieri), Istanbul Shipyard, ThyssenKrupp Marine Systems (TKMS), and Poly Technologies. Partnerships with local South African shipyards are crucial for foreign companies looking to diversify globally and pursue maritime opportunities in Africa. For local South African shipyards, foreign partnerships pave the way for the transfer of skills and technology. Together with sound defence relationships, these partnerships can only amplify and provide a much needed boost to the industry, which according to Southern African Shipyards CEO, Prasheen Maharaj, remains uncompetitive.

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Securing the South African coastline with modern patrol vessels is long overdue. The newly acquired patrol vessels will assist with a number of maritime functions such as monitoring, search and rescue, logistical and medical support, and an array of collateral tasks. The inshore patrol vessels (IPVs) could patrol the coastline for criminal activities while the offshore patrol vessels (OPVs) with their helicopter decks, could operate further out in rough seas. The completion of Project Biro will place the South African Navy in a prime position to promote cooperation, peace, security, and stability in the region.

Written by Sylvia Caravotas (Satovarac Consulting) for OIDA Strategic Intelligence

EUROSATORY 2016

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OIDA Strategic Intelligence will be at Eurosatory 2016.

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