Greece

Residing on the Balkan Peninsula, an area that has been associated with more than a few political disputes in the last few decades, Greece has to be prepared to tackle with a considerably complicated and potentially precarious environment. As a counterbalance, Greece is a member of the most important European and international organizations, such as NATO, the European Union, the Organization for Security and Co-operation in Europe (OSCE) and the United Nations.

Nevertheless, the above-mentioned overall geostrategic environment, renders it necessary for Greece to allocate considerable human and financial resources towards its National Defence. After two decades of high spending in defence, this Balkan country has introduced considerable cuts to its defence spending in recent years. On the other hand, Greece is one of the few EU members that are still facing a ‘conventional’ threat, as it still has open disputes with one of its neighbour countries, namely Turkey. Therefore, it can be safely concluded that Greece will maintain a certain level of defence capabilities, that will help the Balkan state to cope with the basic responsibilities/threats, geography and history bestowed upon it. Therefore, in the near future, Greece is expected to spend a significant amount of money in order to upgrade its weaponry, in line with the armaments modification and modernization programmes of its historic adversaries.

So, even though the financial situation remains troublesome, Greece, according to figures released by the North Atlantic Treaty Organization (NATO), spent around 2.4% of its GDP on defence in 2015 and 2016, a 7.2% increase in defence spending over that of 2014 (or some an additional 0.2% of the GDP). Overall in terms of this measure, Greece ranks 2nd out of the 28 NATO members, behind only the US and being one of the few member states that achieves the NATO’s target of 2% of the GDP spending in military expenditure. The 2017 budget reaffirms the country’s commitment to retain a certain level of defence capabilities, as an amount equalling 3.149 billion Euros is projected to be allocated for defence purposes.

Historically the Army receives the highest amount of funds, when compared to other branches. It is indicative that in 2017, the Army is expected to receive approximately 43.5%, the Air Force 22.4% and the Navy 15.3% of the budget. The remaining funds are allocated to other authorities responsible for defence administration and to the Hellenic (Greek) Force in Cyprus (ELDYK). Much the same pattern was also notable across the period 2012-2016, with only marginal fluctuations.

The budget allocated to ELDYK is expected to reach 6.758 million Euros for 2017, delineating a strong commitment from the Greek side to strengthen the defence links with the Island State of Cyprus, which have been structured through bilateral agreements, signed by the two parties. In February 2015, during his visit to the island, Greek Defence Minister Mr. Panos Kammenos in a common press conference with his Cypriot counterpart Mr. Christoforos Fokaides, stated that defence cooperation between the two countries would be further reinforced in more practical ways in the coming months, including possible tri-partite exercises with Egypt. Greece’s permanent, regiment-sized military force in the island (ELDYK) was formed in 1959, soon after the Zürich and London Agreements established the independence of Cyprus. According to the treaties, Greece, along with Turkey and the United Kingdom, would be the new state's guarantor powers. As such, Greece and Turkey were authorised to have a permanent presence of a small military detachment in the island, in addition to the British military presence.

Overall, Greece is determined to maintain a certain level of defence capabilities, in line with the modernisation programs of its main geopolitical adverseries. Therefore, in October 2016, a meeting between the General Director of the General Directorate for Defense Investments and Armaments (GDDIA) and a representation of Lockheed-Martin, regarding a proposed upgrade program for the Greek F-16s. The GDDIA is the Greek authority responsible for planning and implementing defence programs and for procurements of defence materiel on behalf of the Armed Forces.

Despite recent financial restrictions, the Hellenic Armed Forces may historically be viewed as a keen customer for foreign defence companies, mainly due to the ‘particular’ conditions of the Greek geostrategic environment. The aforementioned situation obliges the nation to maintain a large and technologically advanced military force, even in relation to other European Union member-nations with a larger population and more ample financial resources.