Country survey VII: Military spending in Greece

Greece is one of the poorest members of the European Union, yet its defence burden is the highest in Europe and NATO. At around 5.6% of GDP in 1994 it is twice the average NATO and European Union burden. In terms of the human and material resources devoted to defence yearly Greece is in comparative terms the most militarised country in Europe. The purpose of this paper is to examine military spending in Greece. It begins with a brief survey of the Greek economy and its development as it relates to defence. The determinants of Greek military spending are then modelled and analysed. The causes of military spending appear to be primarily regional rivalries and conflicts. In particular the ongoing dispute with Turkey is the main external security determinant of defence spending in Greece. The supply of defence inputs is then examined with reference to equipment procurement and indigenous arms production.

Key Words:

• Military expenditures
• Greece

Notes

Acknowledgment: I wish to thank Professor Keith Hartley and an anonymous referee for helpful comments and constructive suggestions on an earlier version of this survey. All remaining errors are of course mine.