Israel and Greece Deepen Defence Ties With $3.5 Billion Air Defence Deal

Israel and Greece have signed a €3 billion ($3.5 billion) defence agreement that will see Israel develop a multi layered air defence system for Greece.

Israel and Greece have signed a €3 billion ($3.5 billion) defence agreement that will see Israel develop a multi layered air defence system for Greece. The deal comes as Athens accelerates a wider military modernisation programme aimed at strengthening its ability to respond to missile, aircraft and drone threats. Israel described the agreement as its largest defence export deal with Greece and one of the biggest in its history.

Israel to Build Multi Layered Defence System

The agreement, known as the Achilles Shield, will combine several Israeli air defence and surveillance technologies. Greece will receive the David’s Sling and SPYDER systems produced by Rafael Advanced Defense Systems, alongside the BARAK MX system manufactured by Israel Aerospace Industries. The package will also include MMR multi mission radars produced by IAI subsidiary ELTA Systems.

The systems are intended to provide Greece with layered protection against different types of aerial threats, including ballistic missiles, aircraft and drones. The agreement will also establish a national command and control system developed by Rafael to integrate Greece’s various air defence capabilities.

Israel’s Defence Ministry Director General Amir Baram said the agreement demonstrated the technological capabilities of Israeli defence companies and the operational record of their systems.

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David’s Sling Expands Beyond Israel

The agreement also marks an important expansion of the international market for David’s Sling, one of Israel’s most advanced missile defence systems. The system was used by Israel to intercept Iranian missiles during the war with Iran this year.

Greece will become only the second foreign customer for David’s Sling after Finland. The acquisition reflects growing European interest in Israeli air defence technology as governments across the continent reassess their military requirements amid heightened security concerns.

Greece Accelerates Military Modernisation

The agreement forms part of a much broader Greek effort to upgrade its armed forces. Greece currently spends nearly 3.5% of its gross domestic product on defence, placing it among the higher spending NATO members.

A major factor behind Athens’ defence planning is its long running dispute with neighbouring Turkey. Greece is seeking to strengthen its air and missile defence capabilities while also upgrading its broader military arsenal.

Athens plans to spend around €28 billion through 2036 on the Achilles Shield programme and other military acquisitions. Its plans include purchasing up to 40 F-35 fighter jets from the United States as well as new frigates from France and Italy.

Drone Threat Adds to Defence Priorities

The agreement also reflects the growing importance of drones in modern warfare. Alongside the main €3 billion deal, Israel and Greece signed a supplementary €26 million agreement for Rafael’s Drone Dome systems.

The systems will be used to protect strategic locations against drone attacks and strengthen Greece’s existing defences. The increasing use of relatively inexpensive drones in conflicts around the world has pushed European governments to invest more heavily in specialised counter drone capabilities.

Expanding Defence Industry Cooperation

Beyond weapons and radar systems, the agreement is expected to deepen industrial cooperation between the two countries. Israel will facilitate the transfer of technology and expertise to Greek defence companies, potentially giving Greece greater domestic capacity to maintain and develop parts of its air defence network.

For Israel, the deal further strengthens its position as a major supplier of advanced defence technology to European countries. For Greece, cooperation with Israel provides access to a range of systems that can be integrated into a broader national air defence architecture.

The agreement therefore represents more than a major arms purchase. It reflects Greece’s effort to build a comprehensive shield against emerging aerial threats while strengthening defence ties with Israel and expanding cooperation with European and American defence partners.

With information from Reuters.

Sana Khan
Sana Khan
Sana Khan is the News Editor at Modern Diplomacy. She is a political analyst and researcher focusing on global security, foreign policy, and power politics, driven by a passion for evidence-based analysis. Her work explores how strategic and technological shifts shape the international order.

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