Greece has become the first EU nation to tap into relaxed defence spending rules, rolling out a massive €25 billion ($27 billion) multi-year rearmament programme. At the heart of this overhaul is the Shield of Achilles, a cutting-edge multi-layered defence system designed to protect against missiles, aircraft, warships, submarines, and drones.

Prime Minister Kyriakos Mitsotakis called the shift the “most drastic transformation in the history of the country’s armed forces,” emphasizing that modern warfare demands new strategies. The programme is a key part of Agenda 2030, a broader effort to revamp Greece’s military capabilities.

Greece has long been a big spender on defence due to its tense relationship with Turkiye, and in 2024, it will allocate 3% of its GDP to military expenses, well above the European average of 1.9%.

This comes as the EU ramps up its own defence commitments amid growing geopolitical tensions. Last month, the bloc approved plans to raise up to €650 billion ($705 billion) in additional defence funding and set aside €150 billion ($163 billion) in low-interest loans to boost Europe’s defence industry.

Mitsotakis argues that Europe should eventually move towards a shared defence fund, similar to how the EU handled pandemic recovery funds. For now, though, Greece is taking the lead in preparing for an uncertain future.

From Crisis to Comeback, How Greece Pivoted to European Defence Autonomy?

Once a major buyer of U.S. weapons, Greece’s post-2008 financial meltdown forced a rethink of its defence strategy. Years of austerity slashed its military budget, even as Turkiye ramped up its own defence spending. Unable to match its regional rival in sheer numbers, Greece opted for quality over quantity, shifting towards advanced European weaponry.

The U.S., aiming to maintain balance between its Mediterranean allies, hesitated to supply Greece with cutting-edge systems. This nudged Athens towards European strategic autonomy, a vision championed by France’s Emmanuel Macron.

The shift became clear in 2019, when Greece ordered 18 French Rafale fighter jets for $2.5 billion, later increasing the order to 24. Then in 2021, it signed a landmark defence pact with France, securing three state-of-the-art Belharra frigates from Group Naval, with an option for a fourth. These frigates—armed with hypersonic Aster-30 missiles, Exocet anti-ship weapons, and Thales radar systems—are set to bolster Greece’s naval power.

Prime Minister Kyriakos Mitsotakis hailed the partnership as a game-changer, arguing that it solidifies Europe’s independent defence posture in the Mediterranean. With France, the EU’s only nuclear power, as an ally, Greece’s military strategy is no longer bound by outdated 7:10 proportionality rules that once governed U.S. arms supplies to Greece and Turkiye.

Looking ahead, Greece aims to expand its domestic defence industry, securing a 12% stake in the Belharra frigate contracts for Greek firms. Defence Minister Nikos Dendias has also set his sights on involving Greek companies in the European Patrol Corvette programme, further cementing the country’s role in shaping Europe’s future military capabilities.

Greece’s Defence Strategy, Striking a Balance Between Europe and the U.S.

While Greece has leaned heavily towards European defence autonomy in recent years, it’s far from turning its back on the U.S. In fact, Athens has carefully balanced its ties between Washington and Brussels, ensuring it remains a key player in both camps.

In 2018, Greece signed a $1.3 billion deal with Lockheed Martin to upgrade 85 F-16s to Viper level, enhancing their radar and weapons systems. Then, in 2023, it ordered 20 F-35 fighter jets, joining the exclusive club of nations operating the world’s most advanced stealth aircraft.

But Greece’s ambitions don’t stop at purchases—it wants a seat at the table. Athens is actively pushing for Greek companies to co-develop the next-generation U.S. Constellation-class frigate, aiming to integrate itself into the future of American naval technology.

According to Konstantinos Filis, a professor of international relations at the American College of Greece, this balancing act isn’t just strategic—it’s essential. “Greece is obliged to balance between the U.S. and Europe in defence because that better consolidates its position. 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.”

By maintaining strong defence ties with both Washington and Brussels, Greece ensures it remains a key pillar of Western security, while securing the best of both worlds for its military modernization.