Published: · Region: Eastern Europe · Category: geopolitics

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Capital and largest city of Greece
Context image; not from the reported event. Photo via Wikimedia Commons / Wikipedia: Athens

Greece Admits Missed Defense Investment as Türkiye’s Arms Industry Becomes a Diplomatic Weapon

Greece’s foreign minister conceded that Athens made a “strategic mistake” by letting its defense industry decline while Türkiye built a thriving arms sector it now uses as a diplomatic tool. The rare public admission lays bare a changing balance of power in the Eastern Mediterranean, where drones and defense exports now shape influence as much as warships.

In a candid assessment with implications far beyond domestic politics, Greece’s foreign minister has acknowledged that his country fell behind in defense industrial power just as neighboring Türkiye was building one—and that this gap now shapes both security and diplomacy in the Eastern Mediterranean.

George Gerapetritis said that Türkiye began developing its defense industry in the 1990s, “at a time when, unfortunately, our own defense industry was in decline,” calling Athens’ choices a “strategic mistake.” He contrasted that trajectory with Ankara’s, describing Türkiye’s effort as an attempt to integrate into the international defense system and to wield its defense industry as a diplomatic instrument.

For Greek citizens, many of whom have watched repeated crises with Türkiye over airspace, maritime boundaries and energy exploration, the admission confirms a long-felt concern: that while Greece has invested heavily in imported hardware, from French Rafale jets to upgraded U.S. F‑16s, it has not built the domestic industrial ecosystem that gives a country flexibility in crises and bargaining power in peacetime. Defense dollars spent abroad have bought capability, but not necessarily resilience or leverage.

Türkiye, by contrast, has turned indigenous production of drones, armored vehicles, naval platforms and electronics into both a military and diplomatic asset. Its Bayraktar drones have been exported and showcased from Ukraine to the South Caucasus and North Africa, while Turkish warship and missile programs have supported a more assertive regional posture. By linking arms deals to political relationships, Ankara has been able to deepen ties with states ranging from Qatar to Pakistan, and to carve out a role in conflicts and crises where NATO or EU channels might once have dominated.

Strategically, Gerapetritis’s comments signal that Athens is acutely aware of this shifting balance and may seek to correct course. A credible plan to revive Greece’s defense industry would not only aim to meet national needs but also position the country as a supplier within the EU and NATO ecosystems. That could dovetail with broader European efforts to localize production of key systems and munitions after the shock of Russia’s full-scale invasion of Ukraine exposed supply bottlenecks and overdependence on U.S. industry.

The admission also matters for how outside powers read the Greco-Turkish rivalry. If Greece is perceived as structurally disadvantaged in defense production, it may push Athens to double down on alliances—especially with France, the U.S., and regional partners like Egypt and Israel—to balance Türkiye’s growing autonomy. Conversely, a successful Greek industrial revival would contribute to a more symmetric competition, potentially reducing the temptation for either side to test red lines based on perceived advantage.

Defense factories rarely make headlines, but they define who sets the terms when crises erupt. When one neighbor can build and export the tools of war while the other mostly buys them in, the imbalance shows up not only on the battlefield but across negotiating tables from Brussels to the Gulf.

What to watch now is whether Greece backs the foreign minister’s words with concrete policy changes: investment plans, incentives for domestic production, partnerships with European defense giants that include technology transfer, and efforts to plug Greek firms into EU-level projects. At the same time, Türkiye’s future export deals and co-production agreements—especially for drones, air defenses and naval systems—will reveal how far Ankara intends to push its use of arms sales as a lever of foreign policy in a crowded, contested neighborhood.

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