To cumulative increase by an additional 25 billion euros of expenditure defense In Greece (over 25 billion euros already announced by the government) in the next 10 years the agreement of its members NATOat its summit on 24 – 25 June 2025).
This NATO summit has decided to increase the defense costs of its members to 5% of their GDP by 2035.
According to newsit.gr, responsible officials of the Financial Staff with full knowledge of Greece’s financial and fiscal promotions, the percentage of Greece’s defense spending as a percentage of GDP at constant prices is 3%, taking into account the EUR 125 -year -old EUR 125.
Consequently, on the basis of NATO’s latest decisions, Greece must cover a 2% difference in 2025 – 2035, in order to reach the 3% today at 5% in ten years.
This would lead to Cumulative in an increase in defense spending by nearly 25 billion euros in the next decadeaccording to the same valid sources of newsit.gr.
‘In terms of rhythm of growth -and that is the first important issue -It is something that remains to be decided by the Greek Government in consultation with NATO (on the basis of a national plan that Greece must draw up -and -Greece, which will be controlled by the Alliance every year) and the EU (as fiscal rules should not be violated).
However, if defense spending increased each year, ie by 0.2% of GDP, the additional annual charge (at fixed prices) would start at € 400 million and would reach € 4.7 billion. In any case, however, the average annual additional burden on the next decade would reach 2.5 billion euros.
The second major issue is How to share the extra € 25 billion bra, in particular, what will be the proportion between foreign supplies and internal supplies.
The greater part of the weapons supplies to the interior, the greater the impetus to be given to domestic growth, increasing state revenue that could help further increase defense spending …
On the other hand, the same sources admit that in the coming years, as the Greek defense industry has lost enough ground due to the financial crisis especially after 2010, the largest part of the supplies will come from foreign orders.
However, they point out that both the super-section and reserves that the Greek State (44 billion euros) has gathered is enough to cover NATO increase in defense spending, even if it may lead to one slower early repayment of debt