CNBC: Why Greece Belongs Among NATO Countries With the Highest Defense Spending

Greece ranks among the top five countries that spend the largest portion of their GDP on defense, according to CNBC. Alongside the USA, Poland, Latvia, and Estonia, Greece allocated approximately 3.1% of its GDP for defense in 2024. Apart from the U.S., NATO estimates show that Poland, Latvia, and Estonia have increased their defense spending in response to Russian aggression in recent years. At the heart of Greece’s motivation for high defense spending is its strained relationship with fellow NATO member Turkey. Tensions between Greece and Turkey include historical disputes, wars, population displacement, conflicts over Cyprus control, and significant geographical factors due to Greece’s numerous islands. Experts highlight concerns about the ‘Turkish threat,’ emphasizing Greece’s need to protect its sovereignty and rights. Despite a large defense budget, Greece still lacks a strong domestic defense industry, relying heavily on foreign suppliers. Practical issues also plague Greece’s military capabilities, such as outdated equipment and insufficient training. However, Greece’s high defense spending strengthens its voice within NATO, enhancing relations with major powers like the U.S. and France. While NATO aims to increase defense spending targets to 5% of GDP, Greece may find it challenging to meet this goal despite starting from a higher baseline.