Greece Unveils Ambitious $27 Billion Defense Strategy Amid Regional Tensions

Athens, Greece – On April 3, 2025, Greece became the first European Union member to implement relaxed defense spending regulations, announcing a comprehensive 25 billion-euro ($27 billion) multi-year rearmament program. The plan is centered around a layered defense system referred to as the Shield of Achilles, which Prime Minister Kyriakos Mitsotakis described in parliament as an essential protective dome integrating existing air defenses with modern systems.

According to Mitsotakis, the new system will provide protection across five layers: anti-missile, anti-ballistic, anti-aircraft, anti-ship, anti-submarine, and anti-drone. This initiative marks Greece’s inaugural multi-year defense overhaul, part of a broader military restructuring plan dubbed Agenda 2030. The prime minister underscored the necessity of adapting to new forms of warfare, stating, “We are now facing a different kind of war than we were used to.”

The nation has consistently allocated high proportions of its GDP to defense due to ongoing tensions with Turkey. Greece’s defense spending for 2025 is projected at 3 percent of its gross domestic product (GDP), significantly surpassing the European average of 1.9 percent, as noted by the Stockholm International Peace Research Institute.

In the context of a protracted conflict in Ukraine and uncertainty surrounding U.S. commitments to NATO, the EU recently unveiled an initiative for an additional 650 billion euros ($705 billion) in off-the-books defense expenditure. For 2023, Europe’s total defense spending is estimated at $569 billion. Additionally, the EU has provided member states with access to 150 billion euros ($163 billion) in low-interest loans aimed at strengthening European defense sectors.

Amidst calls for fiscal flexibility, front-line states like Greece and Poland lobbied for these relaxed defense rules. In a bold move, Mitsotakis suggested the need for a European fund dedicated to collective defense initiatives, such as a continental anti-missile shield funded through European grants rather than individual loans. He indicated that collective borrowing could yield cost benefits versus separate funding efforts from individual states.

Historically, Greece has procured primarily U.S.-made weaponry. However, post-2008 economic challenges prompted Greece to pivot towards European defense systems, as high levels of austerity effectively halved its defense budget from 2010 to 2014. In response to increasing Turkish military capabilities, Greece has focused on enhancing the quality of its arms to regain a competitive edge.

Over the past few years, Greece has solidified its defense relationship with France, launching its procurement of 18 French Rafale fighter-bombers in September 2019 for $2.5 billion. This number increased to 24 units in 2020, further solidifying the strategic partnership with the signing of a defense treaty that includes orders for three Belharra frigates from France for a total of 2.26 billion euros ($2.5 billion).

Mitsotakis has lauded the Franco-Greek defense cooperation as pivotal for fostering an independent European defense strategy. He emphasized, “The defense of European interests in the Mediterranean now acquires new substance,” asserting that should conflicts arise, Greece would have the backing of the continent’s most formidable military forces.

All Rafale jets have been delivered with rapid efficiency. The first of the Belharra frigates, originally intended for the French navy, is set for completion later this year. These advanced frigates are equipped with cutting-edge French weaponry capable of countering a variety of threats.

In addition to its European deals, Greece continues to maintain robust ties with the United States, securing a $1.3 billion agreement with Lockheed Martin in 2018 to upgrade 85 F-16 fighter jets and placing an order for 20 fifth-generation F-35 jets last year.

As tensions continue to mount in the region, experts believe Greece must balance its defense partnerships between the U.S. and EU to strengthen its position strategically. Professor Konstantinos Filis from the American College of Greece noted, “It cannot be one-track. And the EU and U.S. also need Greece, because it’s in an area of strategic interest to both.”