Greece Moves Forward on Approving €3 Billion Air Defense Deal with Israel

The Greek parliament’s Special Standing Committee on Defense Procurement Programs and Contracts has approved the acquisition of air defense systems from Israel, granting a green light to a broad modernization plan. The program includes the purchase of Israeli defense systems valued at €3 billion, alongside upgrades to the Hellenic Air Force and Navy’s combat and transport capabilities. The deal is now moving to the next stages.

The approved plan includes the establishment of a multi-layered air defense network designed to counter ballistic missiles, cruise missiles, and unmanned aerial vehicles, based on advanced Israeli interception and detection technologies. According to a report by To Vima, the parliamentary approval also formalizes funding for upgrading 38 additional F-16 Fighting Falcon jets to the advanced Viper configuration, alongside maintenance of older models, in order to ensure the operational superiority of the Greek Air Force against emerging regional threats.

Following approval by the parliamentary committee, the defense budget now moves to the Government Council for Foreign Affairs and Defense (KYSEA), chaired by the prime minister, which provides final political authorization for the deals. Subsequently, formal agreements are signed with the relevant governments, including Letters of Offer and Acceptance (LOA) with the United States for the F-16 upgrades, and government-to-government agreements with Israel for the Achilles Shield system.

In parallel, Greece’s Ministry of Finance will approve the multi-year payment schedule and release the required advance funding from the state budget. Throughout implementation, the parliamentary committee will continue to oversee timelines and budget compliance to ensure transparency in the military buildup process, estimated at approximately €5 billion.

The selection of an Israeli architecture for the Achilles Shield system reflects a shift from procuring standalone systems to building an integrated defense network, incorporating systems such as Barak MX, David’s Sling, and SPYDER. The broader plan also allocates significant resources to modernizing the Greek Navy, including upgrades to MEKO-class frigates and infrastructure preparations at the 117th Air Force Base for the future absorption of F-35 Lightning II jets.

Another key element approved is a five-year logistics support contract worth €240 million for the fleet of C-27J Spartan aircraft, aimed at ensuring high operational readiness of Greece’s tactical airlift capabilities.

The decision underscores Athens’ commitment to strengthening domestic industry, with Greek companies expected to participate in at least 25% of production and maintenance activities. Defense Minister Nikos Dendias stated that the combination of F-16 upgrades and the new air defense system would position Greece at the technological forefront of NATO.

At the same time, the move reinforces strategic cooperation with Israel and creates a comprehensive defensive framework that integrates long-range radar detection with multiple interception capabilities. Ultimately, the approval of the extensive procurement package is intended to equip Greece’s military to address the challenges of modern warfare while supporting stability in the Eastern Mediterranean.