Greece has approved its 2025 state budget, nearly doubling defense spending. The budget passed with 159 votes in parliament, a process that is traditionally seen as a show of confidence in the government. Notably, the defense spending proposal gained broader support, signaling its importance to Greece’s priorities.
Defense spending will increase significantly, rising to €6.1 billion ($6.5 billion) from €3.6 billion. This spike is tied to scheduled equipment deliveries in 2025. Economy and Finance Minister Kostis Hatzidakis emphasized that since 2019, Greece’s defense spending will have grown by 73%, closely aligning with the government’s increased investments in public health, which have risen by 74%.
The decision to bolster defense spending received support from major opposition parties, including PASOK, SYRIZA, and the Hellenic Solution party. Defense Minister Nikos Dendias justified the spending, citing growing tensions with Turkey, a historic rival that allocates €26.8 billion to its defense budget. Dendias also pointed to gaps in Greece’s defense capabilities stemming from years of financial struggles.
The approved spending will address a €20-billion shortfall caused by Greece’s debt crisis. A key focus is modernizing the armed forces by prioritizing drones and advanced technology over outdated equipment. One ambitious initiative is the creation of a comprehensive anti-air and anti-drone defense dome, designed to protect Greece against emerging threats, particularly in light of lessons learned from the Ukraine-Russia conflict.
Prime Minister Kyriakos Mitsotakis hailed the budget’s approval as a step toward stability and growth in a volatile global climate. Beyond defense, the government announced banking reforms, including eliminating transaction fees and allocating €100 million from major banks for school construction. Mitsotakis highlighted these measures as part of broader efforts to strengthen Greece’s economy and support its citizens after the challenges of the financial crisis.