Navy: Corvette Acquisition Options and Data, 4th FDI and MEKO EMZ

Yesterday’s meeting of the Supreme Naval Council was a catalyst for the future of the armament programs of the Navy. GEN Chief Vice-Admiral Stylianos Petrakis PN as well as Fleet Commander Vice-Admiral Panagiotis Lymberis PN in the positions were clear and precise in their positions regarding the current programs at the equipment level.

In particular, these include the acquisition of 3+1 new corvettes (dominant options are the French Gowind and the Italian Doha), the modernization of the four MEKO 200 HN frigates as well as the construction of the fourth FDI. With the existing fiscal data, the fund for the above programs of the PN is estimated at 2.5 billion euros.

The main priority for the PN leadership is the construction of the fourth FDI as well as the modernization of the four MEKO 200 frigates. The German proposal that has been qualified by the PN is in the range of 650 million euros while efforts are being made to further reduce it below 600 million euros. The rising cost of raw materials has pushed up the price of German TKMS while so far the German side does not seem willing to cut its prices.

The objective goal for the PN and its equipment, as noted by the Chief of General Staff during the ANS meeting, is the acquisition of the fourth FDI so that the PN can secure one more strike unit with increased anti-aircraft capabilities at a particularly preferential price based on the original contract. The cost is 975 million euros with a locked-in price. Fleet Commander Panagiotis Lymberis absolutely advocates in this direction. The leadership of the PN appears completely united and with a consensus of opinion.

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The deadline for both the modernization of MEKOs and the 4th FDI is December 31 of this year. There are two main factors that advocate in this direction: the negotiations with the Germans so that the prices fall below 600 million euros and at the same time the program receives the approval of the Parliament and the KYSEA as well as secondarily obtaining the new French bid including 4th FDI and probably number of corvettes combined.

The GEN Chief subsequently informed the Minister of National Defense (NDD) Nikos Panagiotopoulos of the utmost need to proceed with the conclusion of the contract for the fourth FDI with the NDD declaring positive. YETHA has shown great interest in PN and relations with the Chief General Officer are excellent.

Based on the above, the acquisition of the fourth FDI with the full unanimity of the political and military leadership as well as the modernization of the MEKOs is key for the PN. On the corvette front, depending on the available financial resources, the PN is asked to choose for 3 with an option for one more or for four new corvettes. This is the ideal scenario.

In terms of PN, the following plans have been drawn up:
Option 1.
Acquisition of 4th FDI, modernization of MEKOs and 3+1 corvettes
Option 2.
Supply of 4th FDI, modernization of MEKOs and 4 corvettes
Option 3.
Activation of the 4th FDI, modernization of MEKOs and 2+2 corvettes

The final decisions are a function of the economic data and the fiscal possibilities set by the government. What is certain is that the Navy has directly ordered the 4th FDI to have four flagship frigates, four modernized MEKO frigates and a core of 3 to 4 corvettes in the medium term. A key criterion for choosing any option between Gowind and Doha will be the possibility of a long repayment of the program price by the Greek government.

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All this in anticipation of the new French proposal and the official visit of the French Minister of Defense to Athens at the beginning of next month. However, the HYTHA in Lorient emphasized to the French side that it must bring a new proposal and underline the belief of the Greek government for a strong alliance between France and our country.

The construction of corvettes in our country is still a major issue. Yesterday was the official signing of the agreement to clean up the Elefsinos Shipyards and now the final sanctioning decision of the Greek courts is pending which will be the last act in the transfer of the shipyards to the new ownership of ONEX.

In any case, the construction of the first corvette will take place abroad, either in Italy or France, followed by the subsequent ones in Greece. From the government’s point of view, it is noted that the key participation of the Greek defense industry at a rate of more than 30% could potentially be an alternative option instead of building the ships on a domestic basis.

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