Greece has unveiled a comprehensive, 12-year plan to invest €25 billion ($27 billion) in defense equipment, aiming to bolster its military capabilities and invigorate its domestic defense industry, Bloomberg reports.
Prime Minister Kyriakos Mitsotakis announced the ambitious strategy to lawmakers on Wednesday, highlighting Greece’s geopolitical importance and the need to reinforce its security in a rapidly changing global landscape.
The unprecedented long-term plan comes as European nations increasingly focus on strengthening their military posture in response to Russia’s ongoing aggression in Ukraine and a perceived shift in U.S. security commitments on the continent.
“Greece may be small in size but its geopolitical importance is large,” Mitsotakis stated, underscoring the significance of the investment.
Unlike many EU member states, Greece has consistently prioritized defense spending, exceeding NATO’s target of 2% of GDP even during its decade-long financial crisis. This commitment is largely attributed to the country’s longstanding rivalry with neighboring Turkey, which has historically fueled a need for strong deterrence capabilities. In recent years, Greece has acquired Rafale fighter jets and frigates from France and placed orders for up to 40 F-35 strike fighters from the US.
Now, with Europe encouraging greater investments in defense, including through relaxed fiscal regulations, Greece is seeking to establish a clear and sustainable path for future military modernization.
The new strategy envisions allocating approximately 10% of its current economic output towards new defense purchase programs. This marks a significant increase compared to the minimal investments made during the country’s debt crisis that began in 2010.
A key component of the plan is bolstering Greece’s domestic defense sector, which has remained relatively underdeveloped despite the nation’s consistent high military spending. Prime Minister Mitsotakis pledged that the Greek defense industry will actively participate in all future procurement programs initiated by the Defense Ministry.
The strategy also prioritizes the integration of cutting-edge defense technologies to address the evolving nature of warfare. This includes expanding the use of unmanned aerial vehicles (UAVs), drone and anti-drone systems, implementing artificial intelligence (AI) solutions, and strengthening cybersecurity capabilities.
Over the weekend, Mitsotakis visited Israel to discuss potential collaboration with his Israeli counterpart Benjamin Netanyahu, as well as officials from the country’s defense ministry and senior executives from its military sector. The discussions centered on expanding partnerships, with a particular focus on technological innovation and capabilities.
Beyond equipment procurement, the Mitsotakis administration is also investing in its military personnel. Defense Minister Nikolaos Dendias recently announced an up to 20% increase in the monthly wages of members of the armed forces. Greece boasts one of the largest military forces among NATO countries, with just over 1% of the population employed in the military, compared to 0.6% in Turkey, 0.4% in the US, and 0.2% in Germany.
