Greece to spend 25 billion euros as part of multi-year defense plan

(Reuters) - Greece aims to spend 25 billion euros ($26.99 billion) as part of a multi-year defence plan, Prime Minister Kyriakos Mitsotakis told parliament on Wednesday.

The move is part of Greece's bid to modernise its armed forces as it emerges from the 2009-2018 debt crisis that led to years of austerity, and as it tries to keep pace with its historic rival Turkey.

Officials with knowledge of the plan told Reuters in March that it would stretch until 2036 and include the purchase of new submarines, new air, sea and underwater drones, and a communications satellite. Part of the money will be used to develop an anti-aircraft and anti-drone dome, called the "Achilles Shield."

Mitsotakis told lawmakers that the plan meant Greece was investing in its sovereignty but cautioned that the country would need to ensure fiscal prudence despite EU plans to spend more on defence.

Greece, a member of the European Union and NATO, already spends about 3% of its gross domestic product on defence. That is nearly double the average in the EU, which is under pressure to bolster defences as its 75-year-old alliance with the United States comes under strain.

U.S. President Donald Trump was poised to impose sweeping new reciprocal tariffs on global trading partners on Wednesday.

Mitsotakis said that such tariffs threaten economic relations worldwide and meant new challenges for Europe.

(Reporting by Lefteris Papadimas; Writing by Renee Maltezou; Editing by Bernadette Baum)