Written by: Valentina Turchetta

Supervised by: Philip Sääw

Edited by: Cesar Arnold

On 2 April 2025, during a session in Parliament, the Greek government announced the largest military spending plan in its history: €25 billion over the next twelve years (Stamouli, 2025). This decision comes after years of budget cuts following the 2009-2018 financial crisis. The investment, which amounts to around three-and-a-half percent of Greece’s GDP, largely exceeds NATO’s two percent defence spending requirement and reflects the broader European shift in increased spending. Following Donald Trump’s re-election, NATO Secretary-General Mark Rutte has repeatedly stressed the importance of meeting the two percent spending threshold to maintain effective deterrence. (Cook, 2024).

“The world is changing at an unpredictable pace,” said Prime Minister Mitsotakis during the parliamentary session. “We are now facing a different kind of war than we were used to: at least the kind our armed forces were prepared for” (Stamouli, 2025). This major step did not come unexpectedly. Much of Greece’s military equipment, such as its land forces and air defence systems, is considered to be outdated and lacks interoperability, rapid reaction , and multi-role capabilities in light of today’s new threats (Army Recognition, 2025).  Greece and its EU partners also face various security challenges: long-standing tensions and ongoing disputes in the Aegean Sea with Turkey, the war in Ukraine, and questions about NATO cohesion after Donald Trump’s re-election. Together, these factors have made it both urgent and strategically necessary for Athens to boost its military arsenal.

In January 2025, during the Chicago Council on Global Affairs, Greek Defence Minister Nikos Dendias had already stressed the urgent need for military modernisation and for Greece to position itself as a strategic hub. To these ends, he emphasized the acquisition of American F-35 fighter jets and French frigates, the importance of aligning closely with NATO, and the key logistical role of the Alexandroupoli military base for NATO and US operations in Eastern Europe (Papadopoulos, 2025).

The most advanced component of Greece’s modernised defence strategy is the so-called ‘Achilles Shield’: a € 2.8 billion system that integrates anti-drone, anti-ballistic, anti-missile, anti-aircraft, anti-ship, and anti-submarine capabilities. It also incorporates AI-powered missile systems, drone technology, and advanced command units. Expected to be operational by 2027 (Michalopoulos, 2025), the system represents a decisive shift in how Greece allocates its defence budget, moving away from traditional reliance on naval protection toward high-tech, networked capabilities. Soldiers will be equipped with communications systems featuring integrated sensors, while enhanced satellite capabilities will secure data flows in combat (Blackburn, 2025). This long-term investment leaves room for broader discussions about the urgent need for modernisation across Europe, especially considering the high-tech nature of the Achilles Shield. How quickly is the EU really moving forward in terms of defence innovation?

This advanced strategy marks a turning point that the European Union can no longer afford to ignore. With this step, Greece positions itself as driving force of the military modernisation. Some countries, such as Germany and Finland, have already chosen to invest in modern air defence systems (Army recognition, 2025). Poland recently signed a nearly $2 billion agreement with the United States for their Patriot air defence system due to threats posed by neighbouring Russia (Erling, 2025). Italy and Spain are also investing in next generation defence technologies, being delayed in the former due to a cautious fiscal approach (Fonte, 2025) and in the latter because of opposition from the government’s left-wing coalition partners (Laing, 2025).

Whether member states will choose to follow Greece’s path remains to be seen in the coming months, especially within the evolving framework of ReArm Europe/Readiness 2030.

Bibliography:

Army Recognition. (2025, April 5). Greece launches €2.8 billion Achilles Shield project to build national air defense system. Global Defense News. https://www.armyrecognition.com/news/army-news/2025/exclusive-greece-launches-2-8-billion-achilles-shield-project-to-build-national-air-defense-system

Blackburn, G. (2025, April 2). Greece to spend €25 billion over next decade on hi-tech overhaul of military. Euronews. https://www.euronews.com/my-europe/2025/04/02/greece-to-spend-25-billion-over-next-decade-on-hi-tech-overhaul-of-military

Cook, L. (2024, December 4). NATO chief urges European allies to ramp up defense spending as Trump returns to White House. AP News. https://apnews.com/article/nato-defense-spending-trump-military-budgets-3cf6e8da6da08cbf84686d0b5f518f5a

Defence Industry Europe. (2025, April 5). Greece in talks with Israel’s IAI over Barak air defence systems under Achilles Shield plan. https://defence-industry.eu/greece-launches-eur-25-billion-defence-plan-with-f-35-jets-and-achilles-shield-air-defence-project/

Erling, B. (2025, March 31). Poland to sign air defence deal with US worth almost $2 billion. Reuters. https://www.reuters.com/business/aerospace-defense/poland-sign-air-defence-deal-with-us-worth-almost-2-billion-2025-03-31/

Fonte, G. (2025, April 12) Italy not planning to use EU budget leeway for defence spending boost.  Reuters. https://www.reuters.com/business/aerospace-defense/italy-not-planning-use-eu-budget-leeway-defence-spending-boost-2025-04-12/

Laing, A. (2025, March 26). Spain’s Sanchez vows to launch plan for defence boost by summer. Reuters. https://www.reuters.com/world/europe/spains-pm-vows-implement-plan-defence-boost-by-summer-2025-03-26/

Michalopoulos, S. (2025, April 3). Greece to invest €25 billion in defence, eyes Israel for ‘Shield of Achilles’ dome. Euractiv. https://www.euractiv.com/section/defence/news/greece-to-invest-25-billion-in-defence-eyes-israel-for-shield-of-achilles-dome/

Papadopoulos, K. (2025, January 26). Dendias on Greek Security and Foreign Policy. Greek City Times. https://greekcitytimes.com/2025/01/26/dendias-on-greek-security-and-foreign-policy/

Stamouli, N. (2025, April 2). Greece announces ‘drastic’ €25B transformation of defense strategy. Politico. https://www.politico.eu/article/greece-defense-strategy-armed-forces-donald-trump-nato/