Our View: No exaggeration to say Christodoulides’ hopes for defence are wildly high

Over the coming years, Cyprus’ defence industry will reach double digits in relation to the country’s GDP, President Nikos Chrisotodoulides said on Monday as he welcomed the members of the Cyprus Defence Industry Council to the presidential palace. This body was set up a year ago by the president and he called the meeting to find out what had happened in the 12 months since.

“We set some targets, I want to see what was implemented and what was not implemented,” he said without revealing whether he was satisfied. Wishful thinking, however, was at a high. He said: “I consider it absolutely achievable for the Cyprus defence industry, in the coming years to reach double digits as regards the GDP of the country, and what I am saying is no exaggeration at all. I know your capabilities very well.”

Christodoulides believed that this was a new sector of the economy that “promises a lot in the framework of our crystal clear will to strengthen the deterrent power of our country.” If only the president could replace some of his enthusiasm with a modicum of substance. Does he genuinely believe that a defence industry, which is almost non-existent at present, in a few years will be as big as the tourism sector? If it is at “double digit, as regards GDP,” that is 10 per cent of GDP, while the tourism sector is estimated to be about 12 per cent.

Was the president being pragmatic or was he carried away by his enthusiasm? In what world would it be possible for the defence industry of a country that has no such industry to account for 10 per cent of GDP in the space of a few years? And how pragmatic is it to suggest this industry would “strengthen the deterrent power of our country”? A country with a population of less than a million, whichever way we look at it, has no real deterrent power because, apart from everything else, it does not have the numbers, which is a vital factor in any war situation.

Defence Minister Vassilis Palmas was a bit more restrained even though he said the growth of the defence industry was a top priority of the government, because “there will be multiple benefits.” There are currently some 30 companies dealing with matters related to defence, there were innovative companies cooperating within the framework of EU programmes, said Palmas, explaining that the SAFE regulation gave the opportunity for another development boost for these companies.

In short, the industry is still in its infancy. It is nowhere near boosting the power of deterrence, even marginally, and nowhere near making a single digit contribution to GDP, let alone the double digit contribution the president so misleading spoke about.