By John Q. Hosedrinker 
Greece’s 2025 budget, approved by parliament, significantly increases defense spending to €6.1 billion, nearly double the previous allocation. This rise, driven by increased equipment deliveries, reflects the government’s prioritization of national security amidst regional tensions, particularly with Turkey. The increase received broad support across the political spectrum, despite representing approximately three percent of Greece’s GDP. The budget also includes measures to reform the banking system, benefiting citizens through reduced fees and investments in public infrastructure.
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Greece’s recently approved 2025 state budget marks a significant shift in national priorities, with defense spending nearly doubling. The budget, ratified by a substantial parliamentary majority, allocates €6.1 billion ($6.5 billion) to the defense ministry – a considerable increase from the €3.6 billion allocated in previous years. This substantial rise is primarily attributed to an anticipated surge in equipment deliveries throughout 2025. The government’s justification for this dramatic increase emphasizes the pressing geopolitical challenges faced by the nation, particularly those stemming from ongoing tensions with neighboring Turkey.
This budgetary decision underscores a clear prioritization of national defense. The Minister of Economy and Finance highlighted the considerable increase in both health and defense spending since 2019 – a 74% and 73% rise, respectively – emphasizing the government’s commitment to these two sectors. The significant bipartisan support for the increased defense budget further underscores its perceived importance. Opposition parties, despite their varied political stances, joined the ruling party in approving this crucial aspect of the budget.
Defense Minister Nikos Dendias eloquently articulated the rationale behind the increased spending. He directly addressed concerns about the magnitude of the increase, questioning the criteria used to judge its appropriateness. He highlighted the real and present threats faced by Greece, specifically citing Turkey’s substantial defense budget of €26.8 billion ($28 billion) as a key factor influencing the decision. This emphasis on the disparity in defense expenditure between the two nations clearly highlights the perceived need for Greece to strengthen its own military capabilities.
Greece’s defense spending has consistently been higher than the average for most EU states. This, coupled with a significant shortfall of €20 billion during the country’s decade-long debt crisis, explains the urgency to modernize and fortify its armed forces. The current investment reflects a strategy of modernizing military equipment, shifting away from older systems and integrating more advanced technologies, such as drones, learning from the ongoing conflict in Ukraine.
A key element of the modernization effort involves creating a comprehensive anti-air and anti-drone defense system encompassing the entire country. This initiative highlights the government’s commitment to enhancing national security in the face of modern threats. The Prime Minister proudly cited the budget’s approval as a testament to Greece’s proactive approach to stability and growth amid global instability, contrasting Greece’s unified approach to budget approval with the struggles faced by larger European nations.
Beyond the defense increase, the budget includes measures aimed at improving the functionality of the Greek banking system. These measures, such as eliminating charges for numerous banking transactions and contributing to school construction projects, aim to improve the relationship between citizens and banks. This suggests a balanced approach, addressing both national security and domestic economic concerns. The government aims for a banking system that is both financially sound and beneficial to the broader economy and society, rather than perceived as an entity that burdens and excludes the general population. The government’s emphasis on the role of citizens in resolving the previous financial crisis serves as a critical backdrop to the present budgetary decisions.
The substantial increase in Greek defense spending is a multifaceted issue with long-term strategic implications, reflecting not only the immediate concerns surrounding relations with Turkey but also a broader effort to modernize its military and secure its place within the wider European and global landscape. The unprecedented level of bipartisan support speaks volumes about the gravity of the perceived threats, and the government’s proactive strategy for bolstering the nation’s security and economic stability. While the increased investment in defense is undeniably significant, the accompanying efforts to improve the domestic economy aim for a more balanced approach to overall national well-being.