Greece is one of NATO's top defense spenders. Here's why

Sun-soaked Greece whitethorn not instantly travel to caput arsenic a apical defence spender — but lone 4 NATO allies spent a bigger portion of their GDP connected information than the Mediterranean state past year.

In summation to the U.S., NATO estimates amusement that tally includes Poland, Latvia and Estonia, which ramped up their defence expenditures successful effect to Russian aggression successful caller years.

Greece has meantime consistently been a large defence spender, spending astir 3.1% of its GDP connected defence successful 2024.

At the halfway of Athens' defence spending motivations is its tense and fractious narration with chap NATO state Turkey.

Greece and Turkey person "a batch of humanities baggage," Jacob Kirkegaard, a elder chap astatine Bruegel, told CNBC.

Tensions betwixt the 2 nations day backmost respective 100 years and see war, the displacement of implicit 1 cardinal people, clashes implicit controlling Cyprus, and a beardown geographical constituent owed to Greece's galore islands, helium said.

"You person this precise ample fig of Greek islands rather adjacent to the Turkish seashore that, successful principle, the Turks could invade comparatively easily," Kirkegaard said. "Greece has traditionally maintained a ... non-trivial subject beingness connected virtually each these islands, and that is rather costly due to the fact that it means you person to have... a batch of garrisons."

Concerns astir the "Turkish threat" are inactive applicable today, George Tzogopoulos, elder chap astatine ELIAMEP, told CNBC.

"Greece spends a batch connected defence to support its sovereignty and sovereign rights," helium said.

Instability successful adjacent countries and regions including the Middle East, and particularly Turkey's "muscular policy" crossed the Mediterranean, person made it is important for Greece to proceed with its beardown defence spending, Tzogopoulos explained.

"Greece has nary alternate but beryllium prepared for each scenarios," helium added.

Greece's subject spot has cracks contempt the country's ample defence budget, experts say.

For example, Greece has progressively been focusing connected investing successful blase weapons systems, particularly since the Russia-Ukraine war, Wolfango Piccoli, co-president of governmental hazard advisory astatine Teneo, told CNBC.

But, helium noted, "much of that spending has been directed abroad."

"The state inactive lacks a beardown home defence manufacture and a cardinal precedence moving guardant is to physique and prolong an indigenous concern basal that tin trim dependence connected overseas arms suppliers," Piccoli said.

Greece's subject capabilities is besides plagued by applicable problems, Kirkegaard added. Many of the Greek army's galore tanks are comparatively old, and unit is not trained to usage these vehicles successful ample formations. Equipment is besides often precise dispersed retired crossed the country's islands.

"So it would beryllium a mistake, therefore, successful the lawsuit of Greece, to equate spending with benignant of level retired subject capabilities," Kirkegaard said.

As NATO officials stitchery this week, Greece's defence spending levels should besides fortify the country's dependable among the coalition's 32 members.

The expenditures person already boosted Greece's narration with large powers similar the U.S. and France, Piccoli said, partially due to the fact that these nations proviso subject instrumentality to Athens.

"Defense spending successful Greece besides functions arsenic a instrumentality of geopolitical leverage, enhancing its lasting and information guarantees successful a analyzable determination environment," Piccoli added.

Top of docket astatine the NATO acme volition beryllium defence spending, with Reuters reporting that conjugation members person agreed successful rule to hike their people for specified expenditures to 5% of their GDP. This includes 3.5% connected accepted defence issues and 1.5% connected related elements similar infrastructure and cybersecurity.

The leap to a 5% people volition beryllium overmuch smaller for Greece compared to galore different nations, but adjacent Athens mightiness not rather marque it, Kirkegaard suggested.

"Do I truthful deliberation that Greece is is 1 of the countries that's going to beryllium peculiarly responsive to these caller NATO targets? No, I deliberation the reply is no, due to the fact that the broader displacement successful NATO expenditure levels is driven by Russian aggression, which is not, you know, Greece's main subject challenge," helium said.