Govt downplays 2.4 bln USD military deal that emerged during Trump-Tsipras talks on Tues.

A government spokesman on Wednesday quickly clarified that the actual sum for a looming agreement to upgrade Greece's fleet of F-16s is around 1.1 billion euros, instead of a figure of 2.404 billion USD that emerged a day earlier during a meeting between US

President Donald Trump and visiting Greek PM Alexis Tsipras at the White House.

 

The abrupt revelation of the deal caused a mini political furor in Greece, given that the country is still dependent on a bailout by institutional creditors and is seeking debt relief in the immediate future. Moreover, the future defense outlay came on the same day as the country's statistics service announced that the Greek economy continued its recessionary spiral (0.2 percent of GDP) last year.

 

Spokesman Dimitris Tzanakopoulos said the 1.1 billion euros will be allocated over a period of 10 to 15 years, and is a "necessary agreement" in order to keep Greece's fleet of US-made warplanes in front-line operational condition. He said the remainder of the figure - 2.4 billion USD - does not involve the Greek state budget.

 

A late-night (Athens time) Tweet by Greece's outspoken defense minister, Panos Kammenos, said the sum beyond 1.1 billion euros involves off-set agreements and other military-related contracts. Kammenos is part of a coterie of top ministers accompanying Tsipras on the near week-long tour of the United States.

 

The equally outspoken US president, on his part, referred to the F-16 upgrade agreement no less than four times: when receiving Tsipras at the Oval Office and afterwards, at a Rose Garden press briefing.

 

Although the military deal had been the subject of recurring press speculation in Greece over the recent period, the exact figure had not been leaked. Another comment that raised eyebrows in debt-laden and recession-battered Greece was Trump's quip that the agreement will "create jobs" in the United States.