Greece: High military expenditures despite the financial crisis

Release date: 2010-08

Greece’s national bankruptcy could only be averted with the aid of considerable loans from the European Union and the International Monetary Fund (IMF). The government’s high military spending and extensive arms purchases in recent years have contributed to the country’s desolate financial situation. The following article sets out to analyze these expenditures, which are unparalleled in Europe, as well as to look at current plans for future arms expenditure. Although the Greek government has introduced savings measures in the military and arms sector as a contribution to budgetary consolidation, it would appear that Athens has, nevertheless, not fundamentally re-thought its arms procurement practices. German and European policymakers must therefore ask themselves whether EU loans should be used to finance Greece’s new weapons purchases and how this can be prevented if necessary.