Athens (Brussels Morning Newspaper) – According to its finance minister, Greece plans to request that the European Commission exclude its 2026 defence expenditures from the EU’s budget regulations under the fiscal escape clause.
Later on Tuesday, the country plans to submit a request to exempt defence spending of 500 million euros set for 2026, which represents less than 0.3% of its GDP, as stated by Finance Minister Kyriakos Pierrakakis during an interview with public broadcaster ERT.
The European Commission has suggested that member states be permitted to increase their defence spending by 1.5% of gross domestic product (GDP) annually for four years, without incurring the usual disciplinary measures that are triggered when a deficit exceeds 3% of GDP.
Why is Greece seeking an exemption for defence spending?
Greece, which is part of the European Union and NATO, allocates roughly 3% of its GDP to defence. This figure is almost twice the EU average, which faces increasing demands to raise defence expenditures as the longstanding alliance with the United States enters a period of stress.
Greece recovered from a debt crisis lasting from 2009 to 2018 that reduced its output by 25%. Currently, its economy is growing faster than those of other eurozone countries. Last year, the country recorded a primary budget surplus of 4.8% of its output, surpassing the government’s expectations.
How much is Greece planning to spend on defence in 2026?
Athens intends to allocate 25 billion euros by 2036 for a multi-year defence strategy focused on modernising its military and remaining competitive against its longstanding rival, Turkey. This initiative is part of Greece’s effort to modernise its military following the 2009-2018 debt crisis, which imposed years of austerity, while also addressing the need to stay competitive with its longtime rival, Turkey.
Sources indicated that it will extend through 2036 and comprise the acquisition of new submarines, aerial, maritime, and underwater drones, along with a communications satellite. A portion of the funds will go towards creating an anti-aircraft and anti-drone system named the “Achilles Shield.”
