|Oct 2015||73||Business Monitor International||ASDR-223504|
Financial issues with the Eurozone put aside, Greece still maintains one of the most technologically
sophisticated and capable armed forces with a large standing military stocked with mostly modern
equipment. Despite cuts over the last six years, Greece’s defence budget still accounts for 2.2% of its GDP,
higher than Britain, Germany and France which have all seen major combat within the last two decades.
Three major reasons for keeping the military budget high in a time of economic crisis are personnel costs,
regional geopolitics and domestic political pressure. Greece’s defence spending has been reduced by 40% in
the last four years only, and no new procurement initiatives are on the horizon, with existing contracts put
on hold. Continued high defence spending has previously been legitimized by the consensus that the
country is under constant threat by Turkey. Greece is currently facing additional security threats pertaining
to the economic crisis and harsh austerity measures which will continue over the rest of the forecast period.
Greece’s political landscape is likely to become more tumultuous in the coming years. The legacy of fiscal
profligacy and economic distortions will leave a permanent mark on the Greek economy and society, with
political voices potentially becoming more fragmented. We therefore expect a prolonged period of austerity
and instability in the decade ahead. Civil unrest, protests and demonstrations will increase, signifying the
necessity of a coherent and capable security and defence sector.