Greece’s €20.7 billion defence procurement programme highlights a broader gap in the country’s economic and strategic planning, according to an opinion article by Dr Joanna Konstantinou published in the newspaper Kathimerini.
Konstantinou, founder of JK Executive Consulting and a faculty member at The American College of Greece, wrote that while the programme has been presented by the government as a major step toward strengthening national security and modernising the armed forces, it also exposes what she described as a “blind spot” in Greece’s long-term fiscal and industrial strategy.
The multi-year defence package reflects Athens’ efforts to bolster military capabilities amid geopolitical tensions in the eastern Mediterranean. But Konstantinou argued that large procurement programmes of this scale carry financial commitments that extend well beyond the initial announcements and can shape fiscal priorities for years.
For a country that only recently emerged from a prolonged sovereign debt crisis, the challenge lies not only in financing such spending but also in ensuring that it contributes to sustainable economic development, she wrote.
Konstantinou said a key concern is the limited link between defence procurement and domestic industrial policy. In many countries, major defence programmes are structured to generate economic spillovers through technology transfer, local manufacturing or partnerships with domestic companies.
Greece has historically struggled to maximise these benefits, she noted, adding that without stronger integration between defence investment and industrial strategy, the economic return from such spending may remain limited.
At the same time, the author acknowledged that security considerations play a central role in Athens’ decision to increase defence spending, citing the need to modernise ageing military systems and maintain strong partnerships with NATO and European allies.
However, Konstantinou argued that defence policy should be aligned more closely with broader economic planning to ensure long-term fiscal sustainability.
“The €20.7 billion programme represents more than a military upgrade,” she wrote, adding that it highlights the need for a comprehensive strategy linking defence investment with economic policy and industrial development.