The Aegean Dispute and Defense Dynamics: A Comprehensive Analysis of Greece-Turkey Rivalry and Its Economic Implications

This analysis is based on a detailed examination of 7 articles on the subject. It aims to provide a broader perspective by bringing together research on the Aegean dispute between Greece and Turkey, military expenditures, and the defense policies of these two countries. The varied perceptions and results come to offer a detailed apprehension regarding the causes of regional tensions and potential solutions.

The Greek-Turkish conflict is fundamentally one of competing claims relating to the division of territory, namely the Aegean Sea. Such conflicts inevitably play an overriding role in determining the respective defense policies and military spending of the two parties involved. That is, the primary issues at stake regard questions of territorial waters, the continental shelf, airspace, and demilitarization of certain islands. Diverse interpretations of international law, especially concerning the United Nations Convention on the Law of the Sea, have exacerbated tensions for an extended period. Greece advocates for addressing these conflicts through established international legal frameworks, whereas Turkey favors negotiations conducted on a bilateral basis. Both nations perceive these conflicts as existential threats and consequently influence their defense strategies in response.

This has led to both Greece and Turkey spending a substantial percentage of their GDP on military expenditure, at times even more than that recommended by NATO. In the case of Turkey, external threats include that of Greece, and there is also the issue of border security. Greece increases its military spending to balance the accruing increase in military build-up in Turkey. However, studies show that defense budget does not result in economic gain in both the nations; military spending, in fact becomes ultimately dependent on the economy when security determinants become dominant drivers.

The possibility of a Greek-Turkish arms race has been quite persistent. A few studies indicated that the defense budgets of the two countries are positively related with each other, thus assuming a symmetric relationship. A few other studies found no support for such a relationship, claiming that military…