Greece Announces $27 Billion Military Investment

Greek Prime Minister Kyriakos Mitsotakis (Wikimedia Commons)

Greece will spend 25 billion euros ($27 billion) through 2036 to upgrade its military to develop high-tech warfare technologies, officials announced on April 2, 2025, per DW. The announcement was made by Greek Prime Minister Kyriakos Mitsotakis. It marks Greece’s first multi-year, comprehensive rearmament as part of  broader overhaul of the armed forces called Agenda 2030, according to Al Jazeera. 

Greece’s motivation for its military modernization drive is mainly its eastern neighbor, Türkiye. Greek Defense Minister Nikos Dendias told Parliament that the aim of the enhancement will be centered around a planned air defense system called “Achilles Shield,” aimed to address tensions with its Turkish neighbor, according to Defense News. The two NATO members have long-term disputes over borders in the Aegean Sea and the eastern Mediterranean, which have heightened tensions between them in the last century, according to Euro News. A related issue is the status of Cyprus, with Türkiye’s presence on the island described as an occupation by the international community. 

The announcement came amid the United States’ pressure on its NATO allies to spend more on defense infrastructure and pull back from the security of the European continent, according to Bloomberg. Greece is one of the only NATO member states which spends over the stipulated 2 percent of its GDP on defense.  

Dendias stated that Greece plans to shift from traditional defense systems to high-tech, connected strategy that is based on missile systems, drone technologies, and advanced command units that leverage Artificial intelligence (AI), according to Defense News. 

Greek government officials called it “the most significant reform ever undertaken in the history of the Greek state in terms of national defense,” according to The Defense Post. “Our country is protecting itself, arming itself, and strengthening itself,” said government spokesman Pavlos Marinakis. “This reorganization was necessary for Greece because during the economic crisis of the last decade and the freeze on public spending, the country fell behind in terms of modernizing (its arsenal),” said Maria Gavouneli, a professor of international law at the University of Athens and the director of the Hellenic Foundation, according to Courthouse News. 

Greece’s Achilles Shield is largely based on Israel’s Iron Dome and Greece is in talks with Israel to acquire the system and enhance its anti-drone systems, per The Defense Post. Greek Prime Minister Mitsotakis spoke about Greece’s strategic alliance with Israel, underscoring that systems like Israel’s BARAK air defense system can be delivered significantly faster than alternatives from the United States or Europe. “Greece already has the American Patriot systems…European capabilities are limited. Israel, with which we maintain a strategic alliance, can offer solutions more quickly,” Mitsotakis said, according to Army Recognition. 

Though Israel is leading the race, Greece is also negotiating with other NATO members to explore alternative air defense systems. France, Germany, and the United States are also seen as attractive options for their advanced technologies in this arena, per Army Recognition.

In its broader defense overhaul, Greece has signed a deal with France to receive 24 Rafale jets and three Belharra-class defense and intervention frigates (FDI) for a total of more than $5.9 billion. Athens also signed a deal to purchase 20 U.S.-made F-35 fighter jets, according to The Defense Post. 

Prime Minister Mitsotakis also spoke about the recent salary increases for armed forces personnel, the first adjustment in 14 years. He explained that the goal was to make military academies more appealing to younger recruits. In response to criticism for not extending the raises to other uniformed services, he hinted that additional pay increases might be announced at the Thessaloniki International Trade Fair in September 2024, per CalliberAZ. 

At the same time, Prime Minister Mitsotakis made it clear that Greece would maintain its fiscal responsibility. He said, “Not only because the markets are closely monitoring us, but also because the overall performance of the economy is a vital factor for security and stability,” per CalliberAZ. 

Greece is also pushing for the European Union to relax its spending rules, especially on defense infrastructure. As a result, Brussels is exploring excluding military spending from deficit calculations to pursue the U.S.-EU recommendations to increase defense investments, per eKathimerini. 

In conclusion, Greece is seriously modernizing its military to deter its historic rival in Türkiye and in the face of a Europe increasingly disassociated with American defense. It is undertaking serious defense investment to protect its national interests.