Greece Passes New Budget, Prioritizes Defense Spending Amid Economic Discontent

In a significant political move, Greece's ruling New Democracy party has successfully passed the nation's 2025 budget, securing 159 votes in the 300-member parliament. Alongside this budget approval, there was notable cross-party consensus on bolstering defense expenditure, a priority underscored by the volatile geopolitical landscape.

However, this parliamentary decision unfolds against a backdrop of increasing social unrest, driven by soaring prices of essential goods—an issue causing widespread dissatisfaction among the populace.

Despite a decline in support from the 40.5% vote share in the 2023 legislative elections to 24% in recent polls, New Democracy remains the leading political force. Trailing are the socialist party Pasok with 15.9%, the right-wing Greek Solution (ECR) at 8.8%, the Communist Party with 7.9%, and the leftist Syriza party at 7.1%, nearly ten percentage points below its 2023 election performance.

The defense budget itself garnered a sweeping approval, with 258 votes in favor and 41 against, signifying a strong bipartisan agreement regarding Greece's strategic military role within NATO’s southeastern flank.

Analysts suggest this broad support illustrates a shared recognition of the strategic importance of defense investment, especially as Greece consistently exceeds the NATO guideline of 2% GDP spending on defense, a benchmark set in 2014.

Greece's commitment to defense has drawn commendation from international partners, including a positive response from incoming US President Donald Trump. During a February strategic dialogue, the US and Greece praised Greece's spending of over 3.5% of its GDP on defense, allocating over 45% to major equipment and modernization.

In the parliamentary vote, New Democracy was joined by Pasok, Syriza, the Greek Solution, several far-right parties, and the newly formed "Democracy Movement," which emerged after a split within Syriza, in supporting the defense budget.

Syriza leader Socrates Famellos highlighted the necessity of addressing defense needs despite voicing concerns over future military programs and existing deficiencies within Greece's armed forces.

Prime Minister Kyriakos Mitsotakis acknowledged the opposition's constructive stance on defense spending, presenting data that marked an increase in military expenditure from €3.5 billion in 2019 to a projected €6.1 billion in 2025.

Highlighting regional tensions, Defense Minister Nikos Dendias described Turkey as a "real and present threat," particularly if Greece opts to expand its maritime borders in the Aegean Sea, potentially provoking a casus belli with Ankara. He noted that Turkey's defense budget is 14 times larger than Greece's, accentuating the need for a strategic military overhaul and innovation.

In a related development, Greece is reportedly in discussions with Israel to develop a $2 billion advanced anti-aircraft and anti-missile defense system, according to Reuters.