Israel has finalized a €3 billion ($3.5 billion) arms agreement with Greece, marking one of the largest defense deals in its history. The contract centers on the development and deployment of the “Achilles Shield,” a multi-layered aerial defense system designed to bolster Greece’s military capabilities amid rising regional tensions.
The agreement was signed on September 1, reflecting deepening strategic cooperation between the two Mediterranean countries, which share concerns about Turkiye’s expanding regional influence. Israeli Prime Minister Benjamin Netanyahu framed the deal as a continuation of a decade-long security partnership involving Greece and Cyprus. He emphasized the deal as evidence of both Israel’s advanced defense technology and its growing confidence in defense exports.
The Achilles Shield system will incorporate Israeli-made anti-missile, anti-aircraft, and anti-drone technologies, representing a significant modernization effort for Greece’s armed forces. Greek Defence Minister Nikos Dendias described the acquisition as part of the most comprehensive reform of the nation’s military to date and hailed it as a response to evolving military challenges that have rendered traditional defense doctrines inadequate.
Sources close to the Greek defense ministry have indicated that the overall investment in the Achilles Shield program could reach up to €4.2 billion ($4.8 billion), underlining Athens' commitment to enhancing its security posture.
Israeli Defense Minister Israel Katz highlighted shared strategic interests between Israel and Greece, noting that both face threats from regional actors with hegemonic ambitions. His remarks appeared to indirectly reference Turkiye, whose president, Recep Tayyip Erdogan, has frequently criticized Israel. Recent Israeli military actions targeting a Syrian base allegedly being used by Turkiye to establish a presence have underscored the fraught dynamics in the region.
Greece, which maintains a historic rivalry with Turkiye, is one of the few NATO European members to allocate at least 3% of its GDP to defense spending, reflecting its focus on national security amid ongoing regional disputes.
This latest contract follows Israel’s record $6.5 billion deal with Germany for the Arrow 3 anti-ballistic missile system, signed in 2023 and expanded last December. Israel has continued to deepen defense ties globally, including with nations such as India, despite international criticism over its military operations in Gaza.
Concerns over possible use of Israeli arms in the Gaza conflict have prompted some countries, including Britain, to suspend certain arms export licenses to Israel beginning in 2024. Nevertheless, Israel’s defense export sector remains active, capitalizing on its technological advancements and strategic partnerships worldwide.