Nicosia:Developing the domestic defence industry is a priority for the Ministry of Defence, as it aims to bolster the National Guard's military and technological capabilities while creating new opportunities for economic growth, Defence Minister Vasilis Palmas stated on Friday.

According to Cyprus News Agency, Palmas presented the Ministry's 2027 budget to the House of Representatives' Finance Committee. The proposed expenditure is pegged at £894.7 million, reflecting a significant increase of approximately £266.6 million compared to 2026. This increase is largely attributed to contracts signed under the European Union's Security Action for Europe (SAFE) instrument.

The defence industry development is seen as a dual benefit, allowing domestic companies to expand and providing the National Guard with advanced equipment. Palmas noted that Cypriot defence companies are participating in European programmes through bilateral contracts under SAFE and working directly with the Ministry.

The 2027 budget is allocated as follows £13.58 million to the Ministry of Defence, £203.13 million to the Cyprus Army, £247.82 million to the National Guard, and £430.15 million to defence reinforcement. Palmas indicated that approximately £250-260 million of the additional funding could come from the SAFE instrument, with approval from the European Commission.

Palmas outlined three strategic priorities strengthening the National Guard's deterrent capability, focusing on environmental protection and resilience to climate change, and digital transformation. Efforts include bilateral defence cooperation and initiatives to modernize the National Guard, improve personnel conditions, and implement photovoltaic systems at National Guard camps by the end of 2027. Digital transformation aims to enhance security, streamline processes, and improve services to citizens.