Why Greece Is One of NATO’s Top Defense Spenders
Key Points:
- Greece consistently ranks among NATO’s highest defense spenders relative to GDP.
- Tensions with neighboring Turkey remain a major driver of its military investment.
- Experts say high spending hasn’t necessarily translated into modern or dominant military power.
ATHENS, Greece — Known for its beaches and tourism, Greece may not immediately strike the world as a defense heavyweight. Yet according to NATO estimates, only four allies — the United States, Poland, Latvia, and Estonia — spent a larger percentage of their GDP on defense in 2024. Greece’s military expenditures reached around 3.1% of GDP, well above the alliance’s 2% guideline.
The primary reason: its long-standing tensions with fellow NATO member Turkey.
An Uneasy Alliance
“Greece and Turkey have a lot of historical baggage,” said Jacob Kirkegaard, senior fellow at Bruegel, in an interview with F.M.I.E.. Their strained relationship spans centuries, marked by wars, population displacements, and disputes over Cyprus.
Geography further complicates matters. “There are a large number of Greek islands near the Turkish coast, and in principle, these could be vulnerable to invasion,” Kirkegaard explained. “To counter that, Greece maintains a significant military presence on nearly all of them, which is both logistically complex and financially demanding.”
George Tzogopoulos, senior fellow at the Hellenic Foundation for European and Foreign Policy (ELIAMEP), told F.M.I.E. that modern concerns about Turkey’s assertive regional stance remain pressing. “Greece spends heavily on defense to safeguard its sovereignty and sovereign rights,” he said. He also cited instability in the wider region — including the Middle East — as another reason for Athens’ continued investment in military readiness.
“Turkey’s muscular policy in the Mediterranean makes it imperative for Greece to be prepared for all scenarios,” Tzogopoulos added.
Big Budget, Limited Power?
Despite consistently high spending, Greece is not considered a military superpower. Experts point to gaps in both modernization and efficiency.
According to Wolfango Piccoli, co-president of political risk consultancy Teneo, much of Greece’s recent defense spending — particularly after the onset of the Russia-Ukraine war — has gone toward acquiring advanced weapons systems. However, “a large share of that money has been spent abroad,” he said.
Piccoli told F.M.I.E. that Greece still lacks a strong domestic defense industry, which undermines its long-term self-reliance. “Developing an indigenous industrial base is critical to reducing dependence on foreign arms suppliers,” he added.
Kirkegaard also noted logistical and structural limitations. Much of Greece’s equipment — including a large number of aging tanks — is spread across the islands. And while troops are stationed widely, many are not trained to operate as cohesive units using modern tactics.
“It would be a mistake to equate high defense spending with real military capability in Greece’s case,” Kirkegaard said.
NATO Dynamics
As NATO’s 32 members convene this week to discuss future strategy, Greece’s defense outlays are expected to enhance its influence within the alliance. Piccoli emphasized that these spending levels have already bolstered Greece’s ties with major powers such as the United States and France, both of which supply arms to Athens.
“Defense spending also serves as a tool of geopolitical leverage for Greece, reinforcing its role and security guarantees in a challenging regional environment,” he said.
A major item on the summit’s agenda is a proposed increase in NATO’s defense spending targets. According to F.M.I.E. sources, alliance members have tentatively agreed to raise their goal to 5% of GDP, with 3.5% dedicated to traditional defense and 1.5% to infrastructure and cybersecurity.
Even with its current high expenditures, Greece may struggle to reach this new benchmark. Kirkegaard noted that while the shift in NATO policy is driven largely by Russia’s actions, Greece’s principal defense concerns lie elsewhere.
“Will Greece be quick to meet the 5% goal? I doubt it,” he said. “Greece’s challenges are more regional and centered on Turkey, not Russia. So it may not be as responsive to targets primarily shaped by Eastern European security concerns.”
— F.M.I.E. Newsroom