Israel and Greece sign US$3.5 billion defence deal, largest ever between the 2

Israel and Greece have signed a US$3.5 billion defense deal, the largest between the two countries, to bolster their mutual security amid regional challenges. The agreement, known as the "Achilles Shield," includes a sophisticated air defense system employing Israeli technology and features various Israeli defense systems. Israeli Defence Minister Israel Katz highlighted the shared strategic interests of both nations and the threat posed by regional actors with hegemonic ambitions.

Last year, Israeli weapons exports reached record highs, surpassing US$19 billion, a 30% increase from 2024, despite criticism of Israel's conduct in conflicts in Gaza, Hezbollah, and Iran. Greek Defence Minister Nikos Dendias emphasized the importance of modernizing Greece's armed forces to keep pace with Turkey and other NATO members, especially in light of disputes over sea boundaries in the eastern Mediterranean.

The "Achilles Shield" package includes advanced Israeli systems such as David Sling, SPYDER, and a new national command and control system, addressing threats ranging from ballistic missiles to drones. Greece's Defense Minister noted that modern conflicts have transformed the nature of defense and deterrence, rendering outdated defense doctrines ineffective due to the rise of ballistic missiles, satellite communications, unmanned systems, and cyber threats.

This defense deal marks the most significant agreement between Israel and Greece, reflecting deepening defense ties in recent years.