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Secretary of Defense Lloyd J. Austin III met Greece's Minister of Defense Nikos Panagiotopoulos today at the Pentagon to discuss the growing defense partnership between the United States and Greece and the close cooperation between our two countries on basing, defense modernization and collective defense, particularly in the face of Russia's aggression toward Ukraine. The Secretary specifically thanked Minister Panagiotopoulos for Greece's substantial support to Ukraine to defend itself from Russia's brutal and unprovoked invasion.

Secretary Austin shared appreciation for Greece hosting U.S. forces at Souda Bay as well as the recent expansion of our activities there and other locations in Greece. Secretary Austin also thanked Greece for the use of the Port of Alexandropoulis which has been instrumental in moving U.S. forces and equipment to and through NATO's Eastern Flank.

The leaders also discussed the need to reduce tensions in the Aegean through constructive dialogue. Noting he would be speaking by phone with Turkish Minister of Defense Akar in the coming days, the Secretary urged that both sides explore pragmatic solutions to long-standing disputes.

Secretary Austin thanked Greece for consistently exceeding its NATO defense spending and modernization commitments, which will enhance interoperability between our two militaries.

The defense relationship between the United States and Greece has never been stronger. The updated U.S.-Greece Mutual Defense Cooperation Agreement reflects our nations' unshakeable commitment to shared peace and security, and it has enabled the expansion of U.S. Forces in Greece to support United States and NATO's objectives for strategic access in the region.

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We especially thank Greece for hosting the U.S. Naval Support Activity at Souda Bay, which is a cornerstone of our defense relationship. I'd also like to highlight the priority access that your government granted our forces at the Port of Alexandropoulos, and that access allows us to continue to provide military assistance to Ukraine and to counter malign actors and exercise and operate in the Balkans and Eastern Mediterranean and the Black Sea region.

GREEK MINISTER OF DEFENSE NIKOLAOS PANAGIOTOPOULOS: Mr. Secretary, dear Lloyd, it's a great pleasure to meet with you here today in Washington. A true honor to the visit the Pentagon. So, first allow me to reaffirm the importance of a strong and profound and ever-growing strategic defense partnership between the United States and Greece, a partnership that has reached an all-time high in recent years following the two updates of a mutual defense corporation agreement in 2019 and last year. The excellent level of a Greek-U.S. defense cooperation which blended with joint training and joint exercises that increase our interoperability as well as the expanded presence of U.S. military forces in new locations and strategic points on Greek territory, as you mentioned, testifies our common will and desire to increase our readiness in order to meet common threats and challenges and protect our interests in our wider region that is a region of great geopolitical significance.

Dear Lloyd, in concluding, I'm pleased that our meeting today will provide us with the opportunity to discuss ways to further deepen and expand our defense partnership that is already flourishing. A new milestone of this strategic partnership is without doubt the procurement by Greece of the state of the art F-35 fighter, a major step for our deterrence and even closer interaction, coordination and interoperability between Armed Forces of Greece and the United States.

The colossal armament program of Greece in the aftermath of the Imia Crisis in 1996 between Greece and Turkey was an iconic case study. From the 22 billion euros (or 28 billion dollars), the vast majority of them were direct assignments to the foreign defense industries which offered negligible benefits to the Greek defense industry and, instead, fattened the wallets of the (Greek and foreign) arms dealers and corrupt politicians.

Partly because of pressure by the Troika and partly because of economic pragmatism, successive Greek governments assented from 2013 onwards to the privatization of the bankrupt state-owned defense corporations (, , , ) in spite of the expected political cost. Despite several trials, none of these companies been privatized before the end of the debt crisis in 2018 and, therefore, a problematic situation (with an accompanying political and economic cost) persisted.

DEFEA was an exhibition for the display of made-in-Greece weapons and a forum for new contracts between Greek and foreign defense companies, meant to showcase the new dynamism of Greece in the fields of military diplomacy and defense industry. This rebranding campaign occurs at as Athens re-positions itself in the Eastern Mediterranean and the Middle East.

Greece could augment its current success by establishing a ministry of industry and an undersecretariat for the defense industry, along the same lines as Israel and Turkey have, in order to outline a coherent, long-term industrial policy. It also should allocate additional funds for defense research and reduce its dependence on the EU; similarly, export revenues should be directed to research to create a funding cycle for the defense ecosystem. Greece also could see advances by imitating its neighbor and rival, Turkey, demanding as much transfer of institutional knowledge as possible in its joint defense programs with its allies and partners.

The incumbent Greek government should ensure that the re-armament program of Greece after two crises with Turkey in 2020 and the two military pacts with France and the UAE will offer tangible benefits to the Greek defense industry and not end in the same way as the colossal armaments program in the aftermath of the Imia Crisis.

The report is to include an analysis of the potential for additional bases or expanded U.S. military presence in Greece, specifically on Greek islands. The amendment comes as U.S. forces were granted access to four additional military bases in Greece under the expanded defense cooperation agreement signed by the two countries in October of 2021. In recent years, the Pentagon has stepped up military activities in Greece in response to Russian naval operations and the ongoing conflict in Ukraine.

S. 2000 would authorize appropriations of $134 million over the 2022-2026 period for defense-related assistance to Greece. Using historical spending rates for those programs, CBO estimates that implementing the bill would cost a total of $62 million over that period, subject to appropriation of the specified amounts. The remainder would be spent after 2026.

The bill would authorize $125 million ($25 million each year) in assistance to Greece through the European Recapitalization Incentive Program, a Department of State program that supports the efforts of European partners and allies to adopt U.S. defense equipment and training while transitioning away from Russian (or Soviet legacy) military articles.

S. 2000 also would authorize $9 million ($1.8 million each year) for International Military Education and Training (IMET) assistance for Greece. IMET is a Department of State led program executed by the Department of Defense that seeks to improve military-to-military relations and defense cooperation.

Mitsotakis said the high spending on defense would continue despite a welcome thaw in tension with Turkey in recent months. He is due to meet with Turkish President Recep Tayyip Erdogan next week on the sidelines of a NATO summit in Lithuania.

As the country has rebounded following the financial crisis and pandemic, the Greek government is focusing on defense expenditures after years of underinvestment in this area and prior lack of capability for big-ticket purchases. In 2020 the Greek government launched a modernization program to upgrade and modernize its defense equipment as well as enhance its capabilities, announcing a major defense budget of $6.7 billion to justify procurement of frigates, fighter jets and more. The government also encouraged the privatization of bankrupt state-owned enterprises, forming partnerships with foreign investors to encourage modernization and global standards of management. Such efforts continue today as multiple firms engage the government regarding remaining state-owned assets. The appetite to privatize such assets for greater efficiency in a post-Ukraine world has become apparent.

The Hellenic Air Force incorporates a modern aircraft fleet and congruent structure, combined with a comprehensive air defense system that consists of a widespread network of anti-aircraft weapons. The structure, which is overseen by the Air Force General Staff, includes the Tactical Air Force Command, the Air Force Support Command, the Air Force Training Command and a number of other independent defense units and services.[10] Its main mission is to defend Greek airspace and to provide combat support to the Hellenic Army and the Hellenic Navy.

Priority access to the Port of Alexandroupolis in northeastern Greece has allowed the U.S. military to continue to support Ukraine as that nation fights to maintain its sovereignty following the unprovoked February 24 invasion by Russia, the U.S. defense secretary told his Greek counterpart.

Secretary of Defense Lloyd J. Austin III hosted a meeting at the Pentagon today with Greek Defense Minister Nikolaos Panagiotopoulos. The two defense leaders discussed the growing partnership between the United States and Greece and the close cooperation between the two countries on basing, defense modernization and collective defense, particularly in the face of Russia's aggression toward Ukraine.

"The defense relationship between the United States and Greece has never been stronger," Austin said. "The updated U.S.-Greece Mutual Defense Cooperation Agreement reflects our nations' unshakeable commitment to shared peace and security. And it has enabled the expansion of U.S. forces in Greece to support the United State's and NATO's objectives for strategic access in the region." ff782bc1db