Submarines: A New Tool For Redistribution Of Wealth Among Nations

HS Papanikolis in Kiel before her delivery to Greek Navy in 2010.

The submarine deal, Greece made with Germany back in 1998 is continuing to make headlines.

Last time when the project was in headlines was in May. At that time the German DA’s were accusing several former executives of Ferrostaal, the Germany firm that was part of the consortium which won the contract, for paying kickbacks to secure the deal, which was worth just over 1.2 billion euros.

There is nothing about it neither in German or in Greek media.

This the time this notorious submarine deal was brought to headlines by Mr.  Christos Kirtsos the editor of the Greek daily Free Citypress  While his writings do not add much new to what we already know but it makes a very good case how such big defense acquisition projects are used as tools for redistribution of wealth among the nations.

The first order for four Type 214 submarines was made by Simitis government, with Minister of Defense Mr. Tsochatzopoulos, who controls pay for “golden” signatures who placed. The government then considered “emergency” supply of German submarines and has advanced 75% of total costs. Thus, the Greek state has paid a decade ago to 1.5 billion €, while we have not yet taken delivery of the German submarines.

The squandering of public money to complete Papandreou government to order another two submarines of type 214, cost 1 billion.

The order of six German submarines Type 214 used by the PASOK governments to develop “industry” black money and political support to the “achievements” of workers in the shipyards of Scaramanga in the name of the Greek added value. In fact, two thirds of the revenue created by the acquisition of these submarines were recovered by German shipyards, while Skaramangas gradually cut off from the Greek Merchant Marine, a global power.

A vicious circle is thus preserved an arms race absolutely meaningless, especially with regard to Greece. The Greek state deeply in debt assumed enormous loads, the benefit of the German war industry, without getting political understanding in Berlin on issues that interest him much. “

The economical effects of such large defence projects, their political and ethical fall outs are merit of a large and details researches.

Hat tip: Nicolas Gros Verheyde of Bruxelles2

For further reading:
You Reap What You Sow
Same Submarine Different Headaches
3 Ex-Ministers May Face Charges Over Papanikolis Deal
Submarine News Around The Region
Finally The End Of An Odyssey: Papanikolis Commissioned
Papanikolis To Be Commissioned At Another Day
Papanikolis To Be Commissioned On 15th October 2010
The Submarine Deals That Helped Sink Greece
Thyssenkrupp Is Selling Hellenic Shipyards
The End Of The Odyssey Of Papanikolis
More On Greek Submarine force
Greek Submarine Force