Greece has authorised the acquisition of a new air defence system from Israel valued at up to €3.5bn ($4bn), as well as various types of drones and military transport aircraft.
Defence Minister Nikos Dendias told reporters that the nation’s security council KYSEA approved the procurement contract on 23 July, after initially approving the deal earlier this year.
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Greece’s planned “Achilles Shield” defence system is designed to provide layered protection against ballistic missiles, aircraft, and drones.
Israeli firms Rafael and Israel Aerospace Industries (IAI) will deliver the system’s radar and missile components.
Dendias said: “It will be ready and fully operational within 35 months, starting from today,” adding that at least 25% of the system will be produced by Greek industry.
Alongside the air defence package, KYSEA also approved acquisitions including Israeli-made Heron unmanned aerial vehicles, three C-390 transport aircraft from Brazil’s Embraer, 10 British-produced VICTA special forces mini-submarines, and US-manufactured V-BAT drones.
Greece currently operates Patriot batteries from the US and S-300 systems of Russian origin as part of its strategic air defence network.
The new procurements are part of Athens’ broader plan to spend approximately €28bn by 2036 to upgrade its military.
This modernisation initiative covers the planned purchase of up to 40 F-35 fighter jets from the US and new frigates from France and Italy.
Defence cooperation between Greece and Israel has intensified in recent years. The two countries have established a joint flight training centre on Greek territory and conduct regular joint exercises.
In 2023, Athens agreed to purchase 36 rocket artillery systems from Israel, a deal reported to be worth around $739m.
Greece has increased its defence investments against a backdrop of tension with neighbouring Turkey.
The country now allocates about 3.5% of its gross domestic product to defence, one of the highest percentages in Nato.
Over the next decade, Greece is pursuing a total defence modernisation plan valued at $32bn.
According to GlobalData’s “Greece Defense Market 2024-2029” report, Greece’s defence spending is expected to rise over the next five years, reaching $9.8bn (€8.7bn) by 2029.
However, the report states that this level of expenditure will remain below Nato’s target of 2% of GDP.
