The negotiations between the government and the troika regarding the future of defense industries EAS, ELVO and LARKO are taking place over email, with each side working on proposals ahead of the arrival of troika’s technical teams in Athens on the 12th and 16th of September. The troika heads Matthias Mors, Klaus Masuch and Poul Tomsen will be arriving on the 22nd of September.
On Thursday the Minister of Finances Yannis Stournaras stated that the government will respond to EC troika representative Mr. Mors’ email next week. The Minister is expected to try to justify maintaining at least part of the defense industries. Should the technocratic arguments fail, the government will focus on the political aspect of the issue and refuse to shut down the suppliers of the Armed Forces. Prime Minister Antonis Stournaras and Minister of National Defense Dimitris Avramopoulos will help Mr. Stournaras to that end.
Greek plans and troika reservations
The Greek plan is to maintain the industries rather than bankrupt them, even if they are forced to downsize. In the case of EAS, the government is considering shutting down some of its 5 factories, but to keep critical production lines going, for national security and defense purposes.
The troika has refused the Greek proposal of separating civil and military operations of the companies, as well as the voluntary departure and early retirement schemes. On the other hand, the government doubts the troika estimation of 144 million euros being necessary to continue operating.
The Ministry of National Defense is scheduling its orders from ELVO and EAS and revenue growth for the next five years, to support the Finance Ministry’s argument that the continued operation can be more beneficial than bankruptcy.
