On Monday, Israel and Greece announced a $3.5 billion defense agreement, underscoring the continued global influence of Israel’s robust arms industry despite international criticism of its actions in Gaza and the West Bank.
Under the terms of the deal, Greece will compensate Israel for constructing a comprehensive, multilayered air‑defence system that will enable its armed forces to counter aerial threats such as drones and ballistic missiles, according to the Israeli defence ministry.
Although Israel maintains a smaller standing army compared with many nations, its defence industry is globally recognised as world‑class and has been extensively tested through the series of Middle‑East conflicts that began with the Hamas‑led attack on Israel in 2023 and the subsequent Gaza war.
The pact arrives as European states such as Greece face increasing pressure to strengthen their domestic arsenals in response to evolving battlefield tactics. Recent conflicts — including Russia’s invasion of Ukraine and the Israel‑Iran war — have depleted Western weapons supplies and highlighted the emerging dangers posed by drones and other modern threats.
Former President Trump has also urged NATO allies to raise military spending, arguing that many members have not fulfilled their obligations, and has called for defense expenditures to reach 5 % of gross national product by 2035.
Israel’s air‑defence systems — especially the Iron Dome and Arrow missile interceptors — are highly valued by foreign militaries for their proven ability to withstand repeated attacks over the past three years, having largely intercepted large missile barrages from Iran as well as thousands of rockets launched by Hamas in Gaza and Hezbollah in Lebanon.
In a 12‑day conflict between Iran and Israel last year, Iranian forces launched more than 550 ballistic missiles and 1,000 drones toward Israeli territory, according to Israeli authorities. Despite 32 fatalities, the casualty figure was considerably lower than many military analysts had anticipated.
Although Israel’s conduct in the Gaza war has drawn sharp criticism abroad, nations across Europe and beyond have continued to pursue Israeli‑made weapons. Defence‑export revenue from Israel rose nearly 30 % in 2025, reaching $19.2 billion, largely driven by sales of air‑defence systems, per the Israeli defence ministry.
In December, the German Parliament authorized €3.1 billion worth of purchases for Israel’s Arrow‑3 antimissile system, even as public unease in Germany over Israeli military actions grew.
Greek defence minister Nikos Dendias said on Monday that Greece will become the first European nation to acquire this Israeli system, noting that the country already fields some U.S.-made Patriot interceptors.
