Israel and Greece have signed a €3 billion defence agreement to build a multi-layered air defence network, strengthening Athens’ military capabilities amid its long-running tensions with NATO ally Turkey.

The deal, known as the “Achilles Shield”, is one of the largest defence export agreements in Israel’s history. It will give Greece an integrated network designed to counter ballistic missiles, aircraft, cruise missiles and drones.

Israel Signs Major Defence Deal

Israel and Greece formally signed the agreement in Tel Aviv on August 31. Under the deal, Israel will build a comprehensive, multi-layered air defence architecture for Greece using Israeli-made systems.

The Israeli Defence Ministry described the agreement as the largest defence export deal in the history of Israel-Greece relations and one of the biggest defence deals ever signed by Israel.

The agreement comes as Greece accelerates a wider military modernisation programme aimed at strengthening its ability to defend its airspace and critical infrastructure.

David’s Sling, BARAK MX Included

The new Greek defence network will combine several Israeli systems operating at different ranges.

These include David’s Sling, developed with Rafael; BARAK MX, manufactured by Israel Aerospace Industries (IAI); and the SPYDER air-defence system, also produced by Rafael.

The agreement also covers multi-mission radars supplied by IAI subsidiary ELTA Systems and a new national command-and-control system designed to bring the different layers together.

A separate €26 million agreement will provide Greece with Rafael’s Drone Dome systems to protect strategic locations against unmanned aerial vehicles.

Turkey Factor Behind Upgrade

Greece and Turkey are both members of NATO, but their relationship has been marked by decades of disputes over territorial waters, airspace, the Aegean Sea and Cyprus.

Greece spends nearly 3.5% of its GDP on defence, a relatively high level among NATO members. Reuters reported that the long-running dispute with neighbouring Turkey remains an important factor behind Athens’ defence spending.

The new Israeli deal therefore has clear strategic significance for the wider eastern Mediterranean, although neither Israeli nor Greek officials named Turkey as the direct target of the agreement.

Greece Builds Achilles Shield

The €3 billion agreement is part of Greece’s much larger Achilles Shield modernisation programme.

Athens plans to spend about €28 billion through 2036 on strengthening its armed forces. The programme includes the development of anti-ballistic missile, anti-aircraft and anti-drone capabilities.

Greece is also planning to acquire up to 40 US-made F-35 fighter aircraft and additional naval assets from European suppliers as part of its broader military modernisation.

Israel Expands Defence Ties

Israel and Greece have steadily expanded military cooperation over the past decade.

The two countries operate an air-training centre in Greece and conduct regular military exercises. They also cooperate in areas including anti-drone technology and cybersecurity.

Athens purchased 36 Israeli-made rocket artillery systems for about €650 million last year, further strengthening the defence relationship between the two countries.

What Systems Can Do

The combination of systems is intended to create multiple layers of protection rather than rely on a single missile shield.

David’s Sling is designed to intercept medium- and long-range threats, while BARAK MX can counter a broad range of aerial and missile threats. SPYDER adds another layer against aircraft, cruise missiles and other airborne targets.

The network will also use surveillance radars and a central command-and-control architecture to coordinate the different systems.

Impact On Turkey

The deal could alter the military balance in the eastern Mediterranean, particularly because Greece and Turkey remain locked in longstanding strategic disputes.

At the same time, it would be inaccurate to describe the agreement as Israel “defeating” or “disarming” Turkey. Turkey maintains significant military capabilities of its own and is also pursuing major defence modernisation.

The immediate significance of the deal is that Greece is acquiring a sophisticated, integrated Israeli air-defence network while deepening its strategic partnership with Israel. That development is likely to be closely watched in Ankara as competition and security tensions continue across the region.