The European Commission’s ReArm Europe plan, launched in March, proposes mobilizing €800 billion in defence spending by 2030. Experts estimate that to defend itself without relying on the United States, Europe must raise its defence spending from around 2% of GDP to at least 3.5%, translating into an annual increase of €250 billion. For fiscally constrained nations like Greece, this presents a sharp dilemma: how to meet urgent defence goals without derailing the country’s climate commitments or overwhelming its public finances.
Greece, like many EU countries, faces pressure to both boost defence and accelerate its green transition. The European climate agenda demands increased public investment—around 2% of GDP—to meet decarbonization goals. Balancing this with rising military expenditure may seem incompatible. However, for Greece, these goals can and must converge, offering a strategic opportunity rather than a zero-sum trade-off.
Energy security is the clearest point of convergence. Greece’s recent struggles with grid overloads from renewable surpluses underscore both its growing clean energy capacity and its vulnerability. Distributed renewable energy systems—such as microgrids and mobile solar arrays—offer a dual-use benefit. Not only do they help stabilize civilian infrastructure, they also enhance the operational independence of military forces. Generating electricity on-site, rather than relying on exposed fuel supply lines, could offer Greece’s military a critical edge, particularly in geographically dispersed or island regions.
Clean fuels, too, are a shared priority. As one of Europe’s sunniest countries, Greece has the potential to be a leader in renewable and low-carbon fuel production. Scaling this sector would not only aid the decarbonization of transport and maritime sectors—vital to Greece’s economy—but also secure fuel for an expanding defence sector increasingly reliant on high-consumption technologies.
Moreover, Greece’s struggling automotive sector could find a second life in defence production. As internal combustion engine vehicle demand declines, plants and workers could be repurposed for manufacturing military vehicles or clean tech components. This shift, already being explored elsewhere in Europe, could help cushion the social impact of the green transition in Greece while reinforcing defence capabilities.
