From EU hands to Israeli arms
Millions worth of EU funds are funnelled to Israel's largest state-owned defence company through a Greek firm and a loophole in the European Defence Fund. A recent investigation found that Israel Aerospace Industries (IAI) acquired a Greek company, Intracom Defense, in May 2023 – allowing it to bypass rules that only allow EU-based companies to receive EU defence funding.
In December 2024, after the start of Israel's military campaign in Gaza, Intracom Defense was selected to coordinate a €59 million EU-funded military project aimed at developing armed drones. Currently, the Israel-owned company is involved in 15 EU defence projects.
The European Defence Fund permits non-EU-owned companies if they are registered in the EU and backed by a member state. But while the Commission insists that ”no project under the EDF violates EU law, international law or fundamental rights,” the IAI openly promoted its drones' role in Israel's operations in Gaza, which the EU indicated breach human rights.
IAI's access to EU funds through a Greek company is no coincidence: Greece has been deepening military and strategic ties with Netanyahu's government. Together with Cyprus and backed by the US, they aim to form a counterweight bloc against Türkiye's aggressive regional policy.
Greece has increasingly invested in advanced Israeli military technology over the past two years. At an arms fair hosted by Greece's defence ministry in May this year, for example, 25 Israeli arms manufacturers showcased weapons systems, many of which have been used in Gaza, while Greece's state-owned aerospace company announced further military projects with IAI.