Commission presents conclusions of investigation on state measures in favour of Hellenic Defence Systems

Further information:

The Commission concluded that Greek measures for Hellenic Defence Systems fall outside the scope of EU State aid control because they protect Greece's essential security interests. However, it was decided that the State would need to recover up to €55 million of public support for civil activities of the company, which distorted competition in breach of EU State aid rules.

Background information:

Hellenic Defence Systems S.A. (or Ellinika Amyntika Systimata A.E. - HDS) is a Greek company, which is almost fully-owned by the Greek State. HDS manufactured both defence-related products (e.g. infantry weapons, ammunition, weapon systems, aircraft fuel tanks) as well as civil-use products (e.g. small pistols, explosives for construction works, fireworks).

During the period 2004-2011, Greece granted a number of support measures to HDS. While measures connected to essential security interests are excluded from assessment under EU State aid rules, public support for civil activities of defence companies have to comply with those same rules.

In March 2013, the Commission decided to open an in-depth investigation on the state measures offered to HDS, which include a direct grant by the State of €10m, a capital increase of €158m and several State guarantees for loans of up to €942m.

The European Commission published on 20 November 2017 its conclusions regarding an in-depth investigation it conducted on state measures in favour of Hellenic Defence Systems.