Greece is one of the 5 countries that spent most of the GDP them for the defenseaccording to CNBC.
Together with US, Poland, Latvia and Estonia, Greece spent about 3.1% of GDP Its defense in 2024. In addition to the US, NATO estimates show that this set includes Poland, Latvia and Estonia, which have increased their defense spending in response to Russian aggression in recent years.
At the heart of Athens incentives for defense spending lies its tense and fragile relationship with the NATO Turkey Allied.
Tensions with Turkey
Greece and Turkey have “many historical issues,” Jacob Kirkegaard, a senior associate of Bruegel, told CNBC.
Tensions between the two nations have been dating back to hundreds of years and have included war, displacement of over 1 million people, conflicts for control of Cyprus and a powerful geographical element due to the many islands in Greece, he said.
“You have this very large number of Greek islands close to the Turkish coasts that, in principle, the Turks could invade relatively easily,” Kirkegaard said. “Greece traditionally maintains a … non -trivial military presence in almost all these islands and this is quite expensive, because it means you have to have … many guards.”
Concerns about the “Turkish threat” are still timely today, George Tzogopoulos, a senior associate of ELIAMEP, told CNBC. “Greece spends a lot on defense to protect its sovereignty and sovereign rights“, He said.
The volatility of nearby countries and regions, including the Middle East, and in particular Turkey’s “muscular policy” throughout the Mediterranean, have made it vital for Greece to continue its high defense spending, Mr. Tzogopoulos explained. “Greece has no choice but to be prepared for all scenarios,” he added.
Greece a military superpower?
Greece’s military power has been cracked despite the country’s big defense budget, experts say. For example, Greece is increasingly focused on investing in sophisticated weapons systems, especially after the Russian -Ukraine War, Wolfango Piccoli, a co -chair of Teneo’s consulting policy, told CNBC. But, he noted, “much of these costs have been directed abroad.”
«Country still lacks a strong domestic defense industry And a key priority moving forward is the construction and maintenance of a domestic industrial base that can reduce the dependence on foreign weapons suppliers, “Piccoli said.
Greece’s military capabilities are also plagued by practical problems, Kirkegaard added. Many of the numerous tanks of the Greek Army are relatively old and staff are not trained to use these vehicles in large formations. The equipment is also often very scattered on the islands of the country. “Therefore, it would be wrong, in the case of Greece, to equate spending on the type of flat military capabilities,” Kirkegaard said.
Greece in NATO
As NATO officials gather this week, Greece’s defense spending levels should also reinforce the country’s voice among the 32 members of the coalition. Expenditure has already reinforced Greece’s relationship with great powers such as the US and France, Piccoli said in part because these nations supply military equipment in Athens. “Defense spending in Greece also act as a geopolitical leverage tool, enhancing its prestige and security guarantees in a complex regional environment,” Piccoli added.
At the top of the agenda of the NATO summit held since yesterday (24.6.2025) in The Hague will find defense spending, with Reuters reporting that members of the Coalition agreed first to increase their target for these expenses to 5% of their GDP. This includes 3.5% for traditional defense issues and 1.5% for relevant data such as infrastructure and cyber security.
The jump in the 5% target will be much smaller for Greece compared to many other nationsbut even Athens may not exactly do it, Kirkegaard estimated. “So I think Greece is one of the countries that will particularly meet these new NATO goals? No, I think the answer is no, because the broader shift to NATO spending levels is due to Russian aggression, which is not, you know, Greece’s main military challenge, “he said.