IRIA News

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Israel and Greece have signed a $3.5 billion (€3 billion) defense agreement under which Israel will build a multi-layered air and missile defense network for Greece, strengthening military cooperation between the two countries as Athens accelerates the modernization of its armed forces.

The agreement is now the largest defense deal between Israel and Greece and one of the biggest Israeli defense exports in the country’s history.

The system, known as the Achilles Shield, is designed to protect Greece against a broad range of threats, including ballistic and cruise missiles, aircraft, drones and other unmanned systems.

The deal comes as Greece faces growing security concerns linked to regional instability, Iran’s missile capabilities and the continuing strategic rivalry with neighboring Turkiye.

Athens has also been expanding military cooperation with Israel and other European partners as it seeks to develop a more integrated air and missile defense architecture.

Multi-Layered Defense Agreement

Under the agreement, Israel will provide Greece with several major air and missile defense systems, combining different interceptors, radars, and command-and-control capabilities into a single national network.

The centerpiece includes Rafael Advanced Defense Systems’ David’s Sling and SPYDER systems, alongside Israel Aerospace Industries’ BARAK MX system. David’s Sling is designed to intercept tactical ballistic missiles, cruise missiles, and medium- to long-range rockets. The system uses kinetic interception and can engage threats at ranges of roughly 40 to 300 kilometers.

SPYDER is a shorter-range surface-to-air missile system designed to counter lower-altitude threats, including aircraft, helicopters, drones, and guided weapons.

The BARAK MX provides another layer of protection and can engage a wider range of targets, including ballistic and cruise missiles, aircraft, helicopters, and unmanned aerial vehicles. Different interceptor configurations allow the system to operate across varying ranges.

The network will also include multi-mission radars manufactured by IAI’s ELTA Systems and a new national command-and-control system developed by Rafael. The command system will integrate Greece’s different air defense capabilities and allow them to operate as part of a broader national network.

Israel has described the arrangement as the first time it is supplying Greece with a complete range of defense capabilities covering threats from ballistic missiles to drones. A separate $30 million agreement will provide Greece with Rafael’s Drone Dome systems to strengthen protection of strategic sites against drone attacks.

The broader agreement will also expand defense-industrial cooperation between the two countries, including the transfer of technology and expertise to Greek industry.

Greece Accelerates Military Modernization

The deal forms part of Greece’s wider military modernization program, which Athens plans to pursue through 2036.

Greece intends to spend about $32 billion over the period on the Achilles Shield architecture and other major defense programs. These include plans to acquire up to 40 F-35 fighter jets from the United States and additional frigates from France and Italy.

The country already spends nearly 3.5% of its gross domestic product on defense, placing it among NATO’s higher-spending members. Greek Defense Minister Nikos Dendias said the changing character of warfare had made older approaches to defense increasingly inadequate.

“Modern conflicts have already altered the parameters of military defense and deterrence,” Dendias said after the agreement was signed.

He said ballistic missiles, satellite communications, unmanned systems, cyber threats, hybrid warfare and the growing integration of different operational domains had made traditional defense doctrines “completely unrealistic.” The Achilles Shield is expected to be delivered in stages, with full operational readiness planned within about 35 months.

Iran War Adds Urgency

The agreement also comes after the war involving Iran, which demonstrated the growing importance of layered air and missile defenses for countries exposed to long-range missile threats.

Israel used David’s Sling during the conflict to intercept Iranian missiles, giving Greece access to a system that has recently been employed in combat. Greece is the second country after Finland to acquire David’s Sling.

The experience of Israel and the wider demand for missile defenses have increased interest in systems capable of countering large salvos of missiles and drones.

Greece also hosts important American military facilities and could potentially face security risks during a future escalation involving Iran or other regional actors.

The pressure on available Western air defense stocks has added another consideration. European countries have sought alternatives as demand for systems such as the U.S. Patriot continues to exceed available production and delivery capacity.

The Greek acquisition therefore reflects not only Athens’ traditional security concerns but also a wider European effort to strengthen air defenses following the wars in Ukraine and the Middle East.

Turkiye Remains Major Factor

Although Greek and Israeli officials did not explicitly identify Turkiye as a reason for Monday’s agreement, the long-running rivalry between Athens and Ankara remains central to Greece’s defense planning.

The two NATO members have repeatedly disagreed over maritime boundaries, territorial claims and access to resources in the Aegean and Eastern Mediterranean.

Greece has increasingly focused on strengthening its ability to defend critical infrastructure and military assets as Turkiye expands its own defense capabilities, particularly in drones and unmanned systems.

Greek officials have previously described Turkiye as a clear security concern, while Athens has continued to invest heavily in fighter aircraft, naval forces, missiles and air defense.

The Achilles Shield is expected to provide an additional layer of protection for Greek territory and strategic assets, including areas around the Aegean.

The deal also adds another dimension to the growing military relationship between Greece, Israel and Cyprus. Cyprus purchased Israel’s BARAK air defense system last year, while Greece and Israel have conducted regular military exercises and expanded defense cooperation.

Turkiye has previously reacted negatively to closer military ties between the three countries, particularly when they involve disputed areas in the Eastern Mediterranean.

Israel-Greece Ties

The agreement further strengthens a relationship that has expanded significantly over the past decade. Israel and Greece have developed close economic, diplomatic and military ties and regularly conduct joint exercises.

Previous defense cooperation included a $1.65 billion agreement with Israeli defense company Elbit Systems to establish a flight training center in Greece, as well as planned Israeli sales of rocket launchers, anti-tank missiles and drones.

The deepening relationship comes despite political opposition inside Greece to closer cooperation with Israel. Criticism has intensified because of Israel’s military operations in Gaza and its broader regional policies. Opposition politicians and other critics have argued that Athens is becoming too closely aligned with Israel.

Despite those concerns, the Greek government has continued to expand defense cooperation with Israel, driven by strategic and military considerations.

The agreement also highlights Israel’s growing position in the global defense market. Israeli defense exports exceeded $19 billion last year, according to official figures, marking a substantial increase from the previous year.

Missiles, rockets and air defense systems account for more than half of Israel’s defense exports, reflecting the country’s growing role as a major supplier of air and missile defense technology.

Israel has also benefited from demand for systems that have been tested during real-world conflicts, giving potential customers greater confidence in their operational performance.

Regional Security Shift

The Greece-Israel agreement reflects a broader shift in how European and Mediterranean countries are approaching air defense.

The proliferation of ballistic missiles, long-range rockets, drones, cruise missiles and other unmanned systems has increased the need for layered defenses rather than reliance on a single interceptor or platform.

Greece’s planned architecture combines short-, medium- and long-range systems with radar coverage and centralized command and control. The addition of dedicated counter-drone systems is intended to address the rapidly expanding threat posed by relatively inexpensive unmanned aircraft.

The deal also strengthens Israel’s defense-industrial ties with a NATO member at a time when European countries are seeking to expand their air defense capabilities.

The combination of Greece’s long-standing tensions with Turkiye, concerns over missile and drone threats following the Iran war, and the broader European push to improve air defenses has given the agreement significance beyond a single weapons purchase. It marks a major expansion of Greece’s defensive architecture while deepening the strategic relationship between Athens and Jerusalem.