As reported by eKathimerini on August 2, 2025, journalist Vassilis Nedos outlines ongoing negotiations between Greece and the United States over an updated version of the Mutual Defense Cooperation Agreement (MDCA). Central to these discussions is the repositioning of American military assets across Greek territory. While Athens advocates for an expanded U.S. footprint—particularly on strategically located islands—Washington remains cautious and selective.
Greece’s boldest proposal seeks permanent U.S. military installations on islands such as Skyros. However, this request has been consistently rejected by the Pentagon, which continues to favor a flexible deployment doctrine over fixed infrastructure, especially in sensitive areas.
The talks gained momentum following the near-total loss of Stefanovikio Air Base, which previously hosted the 1st Army Air Brigade. In response, three new facilities will be constructed at Larissa Air Base (110th Combat Wing) to accommodate helicopters previously stationed at Stefanovikio. This move also paves the way for two additional sites to be formally integrated into the MDCA.
Expansion is also being considered at the Petrochori firing range in Xanthi and Camp Dalipi in Thessaloniki, which could host U.S. command personnel. This northern focus aligns with growing American interest in NATO’s eastern flank, especially near the Black Sea and the Balkans.
The U.S. presence in Alexandroupoli remains unchanged, retaining its vital logistical role for regional deployments. Simultaneously, modernization talks regarding Souda Bay in Crete are underway, including upgrades to the Marathi naval facilities and the nearby 115th Combat Wing air base. Planned improvements include new aircraft hangars, the construction of a Joint Tactical Operations Center (JTOC), and perimeter infrastructure upgrades.
Between 2021 and 2026, the Pentagon has earmarked approximately $42 million for military infrastructure investments in Greece. Part of this funding supports the modernization of maintenance facilities for small special operations vessels operating between Crete and Cyprus.
Bilateral technical working groups are also addressing legal and administrative issues, especially relevant given Defense Secretary Pete Hegseth’s drive to reduce non-essential expenditures. However, Greece appears to remain unaffected by these cuts due to the strategic importance of facilities like Souda, which were recently utilized in operations across the Middle East.
The evolving negotiations highlight a recalibration of U.S.-Greek defense ties. Although some Greek proposals—especially involving island deployments—face resistance, progress is being made elsewhere, particularly in Larissa, Alexandroupoli, and Souda. Amid regional uncertainty, Greece continues to serve as a critical military partner for the United States in the Eastern Mediterranean.
