The European Union must enhance its defense capabilities and arms manufacturing while fostering closer collaboration with NATO, stated Greek Prime Minister Kyriakos Mitsotakis on Tuesday following discussions with NATO Secretary-General Mark Rutte.

In response to Russia’s invasion of Ukraine in 2022, the EU has been working to strengthen its defense posture, with the European Commission committing to advance key initiatives in air and cyber defense.

“During our meeting, we concurred on a critical priority for all allies: the necessity to enhance our collective defense. Achieving this goal demands a robust defense industry, substantial investments, and improved cooperation between the EU and NATO,” Mitsotakis remarked after their meeting in Athens.

As an EU member and NATO ally, Greece allocates approximately 3% of its gross domestic product (GDP) to defense annually. However, analysts indicate that the EU as a whole is facing challenges in making sufficient investments to prepare for potential large-scale conflicts.

Despite increased defense spending since the onset of the Ukraine crisis, the EU’s total defense budget for 2024, estimated at around 326 billion euros, accounts for only 1.9% of its GDP, according to the European Defence Agency.

Greece has proposed measures to provide member states with greater fiscal flexibility for defense investments. The country aims to reform its military and modernize its defense sector as it emerges from a prolonged debt crisis that necessitated significant budget cuts. Additionally, Greece is in negotiations with Israel to establish a 2 billion euro ($2.10 billion) anti-aircraft and missile defense system.

Mitsotakis emphasized the importance of ongoing support for Ukraine, while Rutte, the former Dutch prime minister, commended Greece for its role in expediting the training of Ukrainian pilots and technicians on F-16 fighter jets.

“We must enhance our deterrence and defense capabilities, which includes increasing our defense investments and production. The positive aspect is that we have NATO, the alliance essential for safeguarding every part of our territory,” Rutte stated.