Politico reports:

On the last day of August, a group of Greek military officials arrived in Tel Aviv, led by Major General Ioannis Bouras, to sign what would become one of the largest defense export deals in both countries’ histories.

The €3 billion agreement — called Achilles Shield — will provide a suite of Israeli tech to protect Greece against a wide range of threats, including missiles, aircraft and drones.

The deal is the latest installment in a growing relationship between European governments and the Israeli defense sector. As the continent races to rearm, it has largely relied on the United States for guns, tanks and aircraft. For many of the less-visible systems now at the center of modern security — sensors, interceptors, surveillance technology — governments are increasingly turning to Israel.

That dependence is deepening even as Europe’s political relationship with Israel grows more strained. The wars in Gaza and Lebanon have fueled tensions between the European Union and Israel, even as the bloc’s governments have become increasingly dependent on the country for critical systems — but those disputes have done little to slow cooperation between Israel’s defense sector and individual countries.

“Looking right now on our relations with the EU, yes, there are challenges,” said Avi Nir-Feldklein, Israel’s ambassador to the bloc. “But when you look at what we’re doing on the bilateral level with EU member states, the constructive, practical cooperation is intensive and flourishing.”

Israel’s advantage begins with its military. Young engineers serve in elite intelligence and cyber units, where they work on real-world security threats. After leaving the Israel Defense Forces, many join defense companies or launch security start-ups. The result is a conveyor belt between the battlefield and commercial product development.

Israel’s top three defense companies — Israel Aerospace Industries, Rafael Advanced Defense Systems and Elbit Systems — are either state-owned or maintain deep institutional links to the Israeli defense establishment, with senior military figures embedded in their governance structures.

“Israel is an excellent example of how defense or private companies are so well integrated,” said Kaupo Rosin, the head of Estonia’s foreign intelligence service. “And that makes them very capable.”

Israel’s broader security sector has also become a magnet for investment: Its firms attract nearly a quarter of global cyber investment, according to the Israel Innovation Authority 2025 High-Tech Report, with Google’s $32 billion purchase of Israeli start-up Wiz this year underscoring the sector’s attractiveness. [Continue reading…]