Greece and Israel signed a landmark €3.035 billion air defence agreement on Monday, capping months of negotiations and establishing one of the largest bilateral defence contracts in European history. The deal, dubbed “Achilles Shield,” was signed in Tel Aviv by Greece’s General Directorate for Defence Investments and Armaments and Israel’s Directorate of International Defence Cooperation (SIBAT). Israel’s Defence Ministry called it the country’s biggest-ever defence export deal with Greece and one of the largest in Israel’s history.
The agreement commits Israel to building a multi-layered air defence network incorporating the David’s Sling system by Rafael Advanced Defense Systems, the SPYDER short-range air defence system, and the BARAK MX long-range interceptor manufactured by Israel Aerospace Industries (IAI). MMR multi-mission radars from IAI’s ELTA Systems unit will provide air surveillance across Greek territory. David’s Sling was combat-tested against Iranian missiles during this year’s Israel-Iran conflict, giving the system a battle-proven track record that Israeli officials cited during the signing ceremony.
Five-Layer Architecture
Greek Defence Minister Nikos Dendias described the system as a transformation from what he called “an aggregation of weapons systems” to “a holistic deterrence system.” He noted the name Achilles Shield was chosen deliberately, referencing the Homeric hero’s shield which, according to legend, consisted of five overlapping layers. The modern Greek equivalent spans five operational domains: sea, land, air, cyberspace, and space.
At its core sits an integrated command-and-control system developed by Rafael that will prioritise and assess threats across all domains and propose optimal responses. Ships, aircraft, land-based assets, autonomous systems, and a new fleet of microsatellites will be connected into a single network-centric architecture. Dendias confirmed Greece has acquired a fleet of microsatellites and is preparing its first major geostationary satellite as part of the programme.
A supplementary €26 million agreement covers the delivery of Rafael’s Drone Dome counter-drone systems to protect strategic infrastructure, addressing the growing threat from unmanned aerial vehicles that has reshaped modern warfare across the Middle East and eastern Europe.
Industrial Cooperation and Local Production
The deal extends well beyond hardware procurement into a deeper industrial partnership. Nineteen Greek defence and technology companies have already been enlisted, securing a combined share exceeding 25 percent of the programme’s value, roughly €750 million. Israel will transfer technology and expertise to Greek industry, with provisions for establishing a domestic production base with export potential.
“Greece must not remain a passive buyer and user of defence systems,” Dendias told the Greek newspaper To Vima tis Kyriakis. “We will actively participate in their design, production and development, strengthening domestic expertise.”
The agreement also positions Greece as the first EU member state to adopt a fully integrated Israeli multi-threat air defence architecture, a significant step in the bloc’s broader effort to diversify its security partnerships beyond traditional American and European suppliers. It also establishes one of two nodes for the European GOVSATCOM programme for secure government satellite communications on Greek soil, underscoring the country’s growing strategic role within the EU.
Strategic Context
The signing comes amid accelerating European defence spending driven by the ongoing war in Ukraine and growing concerns about missile threats across the continent. Greece allocates nearly 3.5 percent of its GDP to defence, a higher proportion than most NATO allies, largely because of its long-standing territorial dispute with neighbouring Turkey. Ankara and Athens have repeatedly clashed over airspace violations in the Aegean Sea, maritime boundaries in the eastern Mediterranean, and competing claims over continental shelf rights.
Athens is pursuing a wider military modernisation programme budgeted at approximately €28 billion through 2036. The Achilles Shield is its centrepiece, but Greece is also acquiring up to 40 F-35 fighter jets from the United States and new frigates from France and Italy. Dendias said the new air defence architecture means Greek Navy vessels and fifth-generation aircraft will no longer be confined to “the narrow defence of the Aegean” but will be able to assume a broader deterrence role across the eastern Mediterranean.
Amir Baram, director general of Israel’s defence ministry, said the deal reflected “Israel’s technological edge and the proven track record of our defence systems in the field.” Greece becomes the second customer for David’s Sling after Finland, which deployed the system as part of its own air defence modernisation following its 2023 NATO accession.
NATO and European Defence Implications
The deal arrives at a sensitive moment for European security architecture. The Pentagon has set a November deadline for reviewing US force posture in Europe, raising questions about long-term American commitment to the continent’s defence. Meanwhile, the European Commission approved €6.1 billion in new defence procurement for Ukraine earlier this month, signalling a broader shift toward autonomous European military capability.
The Achilles Shield could serve as a template for other NATO and EU allies seeking to modernise their air defences quickly. Israel’s growing role in European defence procurement represents a shift from the traditional reliance on American systems like Patriot and European solutions like the SAMP/T. Defence analysts note that Israeli firms have built their systems under conditions of constant missile and drone pressure, giving them operational experience that few manufacturers can match.
However, the dependence on Israeli supply chains, software updates, and political willingness to sustain the system through crises remains a consideration. All modern air defence systems create external dependencies, as Patriot depends on US production cycles and SAMP/T relies on European industrial capacity.
Implementation of the Achilles Shield is expected to take 35 months, with components deployed progressively rather than delivered as a single package. The staged rollout will allow Greek forces to begin integrating capabilities incrementally while the full network-centric architecture reaches operational status.
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