UPDATE 2-Greece launches talks for French frigates, coptersThu Jan 22, 2009 11:38am EST
(Adds submarine contract renegotiation, details)
By Daniel Flynn
ATHENS, Jan 22 (Reuters) - Greece will launch bilateral talks with France to buy six Fremm-type frigates and 15 Super Puma (EAD.PA: Quote, Profile, Research, Stock Buzz) search-and-rescue helicopters, the Greek defence minister said on Thursday.
Vangelis Meimarakis told reporters Greece should also place an order for new fighter jets this year, though he did not specify the size of the order or the possible defence contractors involved.
"The green light has been given for talks between Greece and France for a bilateral agreement to purchase six Fremm-type frigates, made by ... Armaris (TCFP.PA: Quote, Profile, Research, Stock Buzz)," Meimarakis told reporters.
"Also, the purchase of 15 search-and-rescue Super Puma helicopters will be discussed," he added, without providing further details.
The minister said Greece was trying to renegotiate the contract for a German-built submarine, the Papanikolis, due to persistent technical problems.
The vessel was purchased from Germany's ThyssenKrupp (TKAG.DE: Quote, Profile, Research, Stock Buzz) as part of a four-submarine contract, reportedly worth around 4 billion euros ($5.19 billion), but Greek officials have complained it failed to meet anti-sonar specifications.
With defence budgets being squeezed by the global downturn, the Greek fighter contract is likely to be much sought after. The order has been delayed for years by budgetary constraints following the expense of staging the 2004 Olympic Games.
Simmering tensions with neighbouring Turkey have kept Greece's defence budgets high. The 2009 budget foresees 2.2 billion euros in spending on arms purchases.
French officials have said France has been involved in unofficial discussions to sell Greece its new high-tech Rafale fighter, made by Dassault Aviation (AVMD.PA: Quote, Profile, Research, Stock Buzz).
However, industry sources say it faces competition from the German-built Eurofighter Typhoon (EAD.PA: Quote, Profile, Research, Stock Buzz)BA.L and the F-16 plane manufactured by Lockheed-Martin (LMT.N: Quote, Profile, Research, Stock Buzz).
Greece, which is lobbying its EU partners in its name dispute with neighbouring Macedonia, has in the past tended to spread military contracts among its diplomatic allies. ($1=.7706 Euro) (Reporting by Daniel Flynn; Editing by Sharon Lindores)
Source
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLM66288720090122
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