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Greek submarines: 3 billion euros evaporated… not for everyone

(BRUSSELS2) Among the waste of Greek money, there is that of the mad arms race between Greece and Turkey in a "frozen conflict" which is still not resolved. A conflict that seems very obscure today when the two countries are members of the same military alliance. But apparently this waste does not move many people, and in particular the Germans who are so keen on the use of public funds and not stingy with giving lessons to the Greeks. Germany thus contributed not a little to widen the deficit. The acquisition cost of six Type 214 submarines by the Greek Navy alone, an order placed with German industry, cost the Greek budget 3 billion euros. " €3 billion at the bottom of the sea», denounces Christos Kirtsos the publisher of the free Greek daily Citypress in one of his last posts (read here, in Greek).

A Germany beneficiary of Greek money

Considering the order to be urgent, the government at the time (Kostas Simitis as Prime Minister and Aposotolos Tsohadzopoulos as Defense Minister) in fact paid 75% of the overall cost in advance. " Thus, the Greek State paid, ten years ago 1,5 billion €, while we still have not received the German submarines explains Kirtsos. The order was to be ensured by the Greek shipyards Scaramanga and the German shipyards TKMS. " In reality, two-thirds of the turnover created by the acquisition of these submarines was recovered by the German shipyards he explains.

The vicious circle

Better the Germans play on both sides since they did not hesitate to sell to Turkey six German submarines of the same type (214), which must be delivered by 2015. And the editorialist concludes “ A vicious circle is thus preserved, an absolutely meaningless arms race, especially with regard to Greece. The deeply indebted Greek state has assumed enormous burdens, for the benefit of the German war industry, without even having obtained the political understanding of Berlin on questions which concern it very much. »

(*) A submarine that dives sideways

The Greek Navy ordered 4 submarines (firm) in the 2000s. The first submarine, the Papanikolis, manufactured in German shipyards, proved unfit for use and was refused by the Greek approval commission. A series of problems had been identified (vibration of the periscope, leaks of sea water in the hydraulic system, etc.) which could be resolved after a few years. But the most serious consisted of roll and stability problems in bad weather (the list can reach 46° during tests). The other submarines manufactured in the Greek workshops have yet to be approved. Unpaid, TKMS preferred to suspend the contract in March 2009 but finally an amicable agreement was reached in 2010 between the German industrialist and the consistent Greek government. The submarine that dives "crookedly" is for sale. The next three should be incorporated into the Greek Navy from 2012. And two more new submarines have been ordered (instead of upgrading old models).

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Nicolas Gros Verheyde

Chief editor of the B2 site. Graduated in European law from the University of Paris I Pantheon Sorbonne and listener to the 65th session of the IHEDN (Institut des Hautes Etudes de la Défense Nationale. Journalist since 1989, founded B2 - Bruxelles2 in 2008. EU/NATO correspondent in Brussels for Sud-Ouest (previously West-France and France-Soir).

One thought on “Greek submarines: 3 billion euros evaporated… not for everyone"

  • The Marquis of Seignelay

    Hi,

    This case has been regularly followed on the Submarine Portal. The publications relayed by this portal rather evoked a default of payment by the Greeks in this contract. Germany built U-212s for its Navy, no problem. Italy also built U-212s, no difficulty. South Korea and Israel will build (Seoul) and receive (Tel Aviv) U-214s (enlarged version of the U-212) without any difficulty. It was never clearly stated in the press that these “flaws” of U-214 Papanikolis were so huge. However, it has often been said that they have been settled! Moreover, it was the Greek Navy that refused to take delivery of this submarine… while ordering additional ones through various politico-financial regulations! Always the same model!

    The question is quite complicated since a modernization contract for… Greek U-209s (German construction, same company) was also at stake.

    According to the latest news, before the 2007-2008 crisis, there was talk of abandoning the modernization of the Greek U-209s, that the Greek navy would not receive the Papanikolis which would be resold to a third navy and the “balance” of sub- sailors needed for Athens would be made up of new deliveries of U-214s.

    Far be it from me to defend the Germans, and I thank the journalist-administrator of this blog for trying to bring this case to its proper media coverage. However, the ban should not be closed too quickly!

    Portugal also acquired U-209s. But it's not the good old model from HDW. During the commercial negotiations the German manufacturer felt strongly competed. To do this he has developed his proposal. However, it was not permitted to change it by the terms of Portuguese negotiations. In the end, HDW offered a U-214. But to “respect” the conditions of contract negotiations, this model was transformed into “U-209PN”. A (very large) a priori, this new model would borrow much more from the U-214 rather than the U-209.
    In what financial situation is Portugal? Who is trampling on the efforts of ex-Prime Minister Socrates to straighten out the Portuguese accounts?

    Likewise, let's not forget Italy, which is completing the renewal of its submarine with U-212s built under license. This time, there was no wind of corruption or anything else. However, what about the state of Italian finances and the German discourse?

    The hospital that mocks charity? Maybe.

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