Kyriakos Mitsotakis and Ursula von der Leyen in EPP Summit, 6 March 2025, Brussels
Kyriakos Mitsotakis and Ursula von der Leyen in EPP Summit, 6 March 2025, BrusselsEuropean People's Party

Greece Unveils €25 Billion Defense Plan

Kyriakos Mitsotakis €25 Billion Defense Overhaul

Greece will spend €25 billion by 2036 to modernize its military in what Prime Minister Kyriakos Mitsotakis called the "most drastic transformation of the armed forces in the country's modern history." The sweeping plan, announced on Wednesday, includes a new integrated defense system dubbed "Achilles’s Shield," designed to counter missiles, aircraft, and drones amid shifting geopolitical dynamics and strained transatlantic relations.

"The world is changing at an unforeseeable pace," Mitsotakis told parliament. "This initiative ensures Greece remains a key pillar of European defense."

A Shift Toward European Defense Integration

Traditionally allocating at least 2% of its GDP to defense—meeting NATO’s spending target—Greece has long prioritized military readiness due to tensions with neighboring Turkey. The new strategy, however, aims to position the country as a cornerstone of the EU’s collective defense framework, fielding one of the bloc’s "most advanced" armies.

This year alone, Greece’s defense budget has doubled to €6.13 billion, placing it among a small group of NATO members—including Poland, Estonia, and Latvia—that spend over 3% of GDP on military capabilities.

Expanding Arsenal with Advanced Systems

Reports suggest Greece is in talks with Israel to acquire components of the "Achilles’s Shield" system, including upgraded anti-drone technology. France, Italy, and Norway have also been named as potential suppliers for new unmanned vessels (USVs), drones, and radar systems.

In a significant move, Greece recently finalized a €5.5 billion deal with France for 24 Rafale fighter jets and three Belharra-class frigates, with discussions underway to build three additional frigates in Greek shipyards, according to a Naval Group source. Athens has also secured 20 U.S.-made F-35 fighter jets.

Defense Minister Nikos Dendias emphasized last November that Greece must adapt to a "different reality," merging military units and acquiring four new drone systems to counter 21st-century threats—particularly those involving Turkey.

The announcement comes as European nations, including France, Germany, and Poland, ramp up military spending amid waning confidence in U.S. security guarantees. European Commission President Ursula von der Leyen has repeatedly urged EU members to bolster defense capabilities in response to Russia’s aggression.

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