Historic Defense Pact: Israel and Greece Ink €3 Billion Arms Agreement

Israel's defence ministry announced a landmark deal with Greece on Monday, valued at approximately €3 billion, to establish the "Achilles Shield" aerial defence system for the Hellenic Republic. This agreement marks the largest defence export deal in the history of Israel-Greece relations and stands as one of the most substantial in the history of the State of Israel.

The comprehensive agreement stipulates that Israel will construct a multi-layered air defence array for Greece. This advanced system will draw entirely on Israeli-made technologies and leverage the extensive operational experience gained by Israel's defence establishment, particularly during recent conflicts. The deal was officially signed in Tel Aviv by Major General Amir Baram, Director General of the Israeli defence ministry, and Ioannis Bouras, his Greek counterpart. Sources from the Greek defence ministry had previously indicated in late July an impending purchase of Israeli-made anti-missile, anti-aircraft, and anti-drone systems, forming part of a wider defence investment for the Achilles Shield projected at €4.2 billion.

According to the Israeli Defence Ministry, the sophisticated export package includes several key interception systems: the David's Sling, Barak MX, and SPYDER. Furthermore, the array will incorporate modern air surveillance radars and a new national command and control system to ensure seamless integration and operational efficiency. All the specified equipment is to be manufactured by leading Israeli defence contractors, Rafael Advanced Defense Systems and Israel Aerospace Industries (IAI), alongside its subsidiary ELTA Systems. In addition to the primary deal, a supplementary agreement worth €26 million was also signed, specifically to provide Greece with Rafael's advanced defence systems designed to counter drone threats.

From Greece's perspective, this multi-billion euro acquisition represents "the greatest reform of its armed forces in its history," as stated by the Greek Defence Ministry. Greek Defence Minister Nikos Dendias emphasized the critical nature of this investment, remarking that recent technological advancements "have long rendered existing defence doctrines completely obsolete." Dendias further highlighted Greece's pioneering role, noting that it is "the first country in the European Union to adopt" such a comprehensive, multi-layered air defence system of Israeli origin.

The defence agreement underscores shared strategic interests and regional challenges faced by both Israel and Greece. Israeli Defence Minister Israel Katz stated, "At a time when actors with hegemonic ambitions are seeking to expand their influence and undermine stability in the region, Israel and Greece will continue to deepen their defence and strategic cooperation." This statement is widely interpreted as a reference to Turkey, a nation with whom both Greece and Israel have experienced heightened tensions. Greece, amid decades of disputes with its neighbour Turkey, is notable as one of only four European NATO members that allocate at least 3% of their GDP to military spending. Israel, too, has seen increasing friction with Turkey, including a reported strike on a disused military base in northwest Syria to prevent Turkish troop deployment.

This significant deal with Greece follows other major defence export successes for Israel. In 2023, Israel finalized a deal with Germany to supply the Arrow 3 anti-ballistic missile defence system, an agreement that was expanded in December to a total value of $6.5 billion (€5.6 billion), making it Israel's largest-ever military export contract. These developments position Israel as a leading global supplier of advanced defence technologies.