European Defence Initiatives and the Cyprus Defence Industry – Panel Discussion
SignalGeneriX’s CEO and president of the Cyprus Association of Research and Innovation Enterprises (CARIE) participated on a panel discussion alongside with Captain Polydoros Hatzidimitriou (Ministry of Defence, Cyprus), Alain Alexis (Senior Expert at Avisa Partners and Former Senior Advisor of the Director-General at DG DEFIS (European Commission) on Synergies in Space, Defence, and Civil Industries), Mr. Nikolaos Papatsas (President, Hellenic Aerospace and Defence Industries Group – HASDIG) and Mr. Andreas Mitsis (President of EODH Defence Systems and Former Secretary General for Industry, Greece). The panel was moderated by Vasileios Tsiamis (EY Associate Partner on Access to EU Funding – Security and Defence Leader and Former Senior EU Official on Security and Defence).
This panel discussion focussed on the European and Cypriot defence initiatives, especially under the European Defence Fund (EDF); opportunities and challenges for SMEs (Small and Medium Enterprises) in the European defence sector; collaboration between regulators, Ministries of Defence (MoDs), and the defence industry; and building national and European defence capabilities and ecosystems.
Captain Polydoros Hatzidimitriou started the discussion and provided a strategic overview of the Cypriot MoD’s defence and innovation priorities. He also emphasized increasing collaboration with the local defence and security ecosystem. He then proceeded to outline key future priorities such as unmanned platforms (ground, naval, aerial), Artificial Intelligence (AI) for defence, robotics, anti-drone systems (active and passive) and cybersecurity and advanced communication networks, including satellite systems. He finalised stating that the MoD aims to publish its technological needs and foster industry participation in EU and national programs.
Following Captain Hatzidimitriou’s intervention, Mr Alain Alexis was invited to speak. As the former senior advisor at DG DEFIS in the European Commission and the key architect of the European Defence Fund (EDF) and the European Defence Action Plan, he explained the importance of building EU defence capabilities to ensure European security and autonomy. He also advised strategically SMEs to join consortia with large companies, actively pursue EDF calls and to build multi-year participation strategies combining EDF with Horizon Europe and other EU programs. However, he also warned about bureaucratic precision: applications must strictly comply with format and rules. Finally, he advocated for leveraging dual-use technologies (civil and defence) and focusing on synergies (e.g., green technologies, space).
Then Dr Tasos Kounoudes (CEO of SignalGeneriX & President of the Cyprus Defence Cluster) shared the success story of SignalGeneriX from a startup in 2004 to an internationally recognized electronics manufacturer. He highlighted the importance of developing local technological capabilities to attract partnerships, of actively promoting Cypriot SMEs at EU events and exhibitions, and of building synergies within Cyprus and with international defence organizations. He also emphasized the role of structured national defence strategies to align industrial growth with EU priorities.
Mr. Nikolaos Papatsas then stressed Europe’s changing defence mindset, particularly after terrorist attacks and the war in Ukraine. He declared that security and defence are now widely accepted as necessary investments. He also emphasized the importance of building defence capabilities within Europe to ensure independence and highlighted the economic benefits of this such as millions of jobs in the EU defence sector and the significant contributions to the EU GDP. He advocates for strong SME involvement in European defence supply chains and collaborative R&D programs. Finally, he noted that Greece ranked fifth in EDP participation thanks to SMEs’ strong performance.
The last speaker of the panel, Mr. Andreas Mitsis, former Secretary General for Industry, Greece, with significant experience in international law and investment, recalled how defence was once a taboo topic in EU discussions but is now central to European strategy. He then urged a greater integration of SMEs into European defence supply chains, and small countries like Cyprus and Greece to proactively contribute to European defence projects. He also encouraged Cyprus to build on its strengths to potentially become a regional defence tech hub (“a new Silicon Valley”) and called for SMEs to actively pursue partnerships and EU project involvement.
The only question from the audience was a concern about the lack of biohazard detection systems (CBRN – Chemical, Biological, Radiological, Nuclear threats). To which the panel replied that the European Defence Fund includes calls for CBRN solutions, that national authorities should work with all security services to prioritize these threats, and Cyprus’s MoD expressed openness to collaborating with local innovators in this area.
In conclusion, the core takeaways of this panel discussion are that SMEs are essential to Europe’s defence capability, especially in niche technologies. That Cross-border collaboration is vital as SMEs must partner with larger defence companies to access funding and opportunities. That defence investments create both security and economic growth. That long-term national strategies are needed to guide SME growth and defence industry alignment. That EU programs are accessible to SMEs, but attention to detail is critical. And that political clarity is required: The EU must resolve contradictions where defence is supported politically but sometimes restricted financially due to sustainability concerns.
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