Greece’s foreign policy is aligned with that of its EU partners. Greece gives particular emphasis to its close relations with Cyprus but also has growing political and economic ties with the Balkan countries and the Middle East.

Greece maintains full diplomatic, political, and economic relations with its south-central European neighbors. It provides peacekeeping contingents for Bosnia, Kosovo and Afghanistan. Greece has good relations with Russia and has embassies in a number of the central Asian republics, which it sees as potentially important trading partners.

Prominent issues in Greek foreign policy include Greek-Turkish differences in the Aegean, Turkish accession to the EU, the name dispute with the Macedonia, the reunification of Cyprus and Greek-American relations. Starting in January 2005, Greece assumed a two-year seat on the U.N. Security Council.

Macedonia
The Greek dispute with its northern neighbor over its constitutional name, Republic of Macedonia, has been an important issue in Greek politics since 1992. Greece was adamantly opposed to the use of “Macedonia” by the government in Skopje, claiming that the term is intrinsically Greek and should not be used by a foreign country. Mediation efforts by the UN and the United States brokered an interim agreement whereby Greece recognized the country as the Former Yugoslav Republic of Macedonia (FYROM) in September 1995. Talks on the name question continue under UN auspices.

Albania
Greece restored diplomatic relations with Albania in 1971, but the Greek Government did not formally lift the state of war, declared during World War II, until 1987. After the fall of the Albanian communist regime in 1991, relations between Athens and Tirana became increasingly strained because of allegations of mistreatment of the Greek ethnic minority by Albanian authorities in southern Albania. A wave of Albanian illegal economic migrants to Greece exacerbated tensions. In the past several years, however, cooperation between Greece and Albania has improved, with efforts focused on regional issues, such as narcotics trafficking and illegal immigration. However, tensions hover just below the surface. Greece remains host to 600,000-800,000 Albanian immigrants, many of them illegal. Albanian crime in Greece often attracts headlines.

Greece-Turkey-Cyprus Relations
For historical reasons, most Greeks see Turkey as the major potential threat to their security. Greece and Turkey have unresolved disagreements regarding the Aegean, the treatment of the Orthodox Church and Greek minority in Istanbul, and the Muslim (primarily ethnic Turkish) minority in western Thrace. The largest source of tension in their relationship since 1974 has been the Cyprus conflict. Only the Republic of Cyprus entered the EU on May 1, 2004, following a failed referendum on the Annan Plan. Greek Cypriots overwhelmingly rejected the plan, which could have allowed a united Cyprus to enter the EU. Turkish Cypriots voted in favor of the plan and both Greece and Turkey expressed their approval.

At times over the past three decades, tensions between Greece and Turkey have almost reached the point of armed confrontation, usually caused by one side or the other attempting to clarify an ambiguous status quo in the Aegean. In 1996, President Clinton intervened to help avert a possible armed exchange after Greek and Turkish journalists generated a dispute over ownership of an uninhabited rock called Imia. A significant breakthrough in relations took place with the major earthquakes that hit Turkey and Greece in 1999. Both countries and peoples responded generously to the other’s need, helping turn around official perceptions that rapprochement was politically too risky. Since that time, Greek and Turkish Foreign Ministers George Papandreou and Ismail Cem (and their respective successors Petros Molyviatis and Abdullah Gul) have steadily increased the quantity and quality of bilateral exchanges, both official and unofficial.

Greece has endorsed and supported Turkey’s bid for candidacy to the European Union since the Helsinki EU Summit in 1999. Despite continuing disagreements with Ankara over Cyprus and the Aegean, Greek opinion leaders across the political spectrum are convinced that Greece’s long-term interests are best served by Turkey’s successfully fulfilling the requirements for European Union membership. On December 17, 2004, the European Union voted to open accession talks with Turkey on October 3, 2005.

The Middle East
Greece claims a special interest in the Middle East because of its geographic position and its economic and historic ties to the area. Greece cooperated with allied forces during the 1990-91 Persian Gulf War. Since 1994, Greece has signed defense cooperation agreements with Israel and Egypt. In recent years, Greek leaders have hosted several meetings of Israeli and Palestinian politicians to contribute to the peace process. Greece has been traditionally supportive of Palestinian claims. However, beginning in the late 1990s, efforts to strike a more balanced relationship with Israel received a boost. Greek-Israeli relations have been complicated by Israel’s strategic cooperation with Turkey.

U.S.-GREECE RELATIONS
The United States and Greece have longstanding historical, political, and cultural ties based on a common heritage, shared democratic values, and participation as Allies during World War II, the Korean conflict, and the Cold War. The Greek government responded to the September 11, 2001 attacks with strong political support for the United States, use of Greek airspace, and the offer of Greek military assets in support of the counterterrorism campaign. Its participation in Operation Enduring Freedom included the stationing of a Greek Navy frigate in the Arabian Sea for almost 2 years–the most distant deployment ever for the Greek Navy. In the summer of 2002, Greek authorities captured numerous suspected members of the terrorist group “17 November.” It was a major break in the investigation of the group, which had killed five U.S. mission employees since 1975. The trial of the November 17 suspects successfully concluded in the fall of 2003.

There is smooth cooperation between U.S. and Greek counter-terrorism officials. Greek and American diplomatic, law enforcement, and intelligence agencies enjoyed close cooperation in the build-up to and throughout the 2004 Summer Olympic Games in Athens.

About 1.1 million Americans are of Greek origin, and almost 3 million call themselves Greek-Americans. This large, well-organized Greek-American community in the United States cultivates close political and cultural ties with Greece. Greece has the seventh-largest population of U.S. Social Security beneficiaries in the world.

The United States has provided Greece with more than $11.1 billion in economic and security assistance since 1946. Economic programs were phased out by 1962, but military financial assistance continued until the early 1990s.

In 1953, the first defense cooperation agreement between Greece and the United States was signed, providing for the establishment and operation of American military installations on Greek territory. The United States closed three of its four main bases in the 1990s. The current mutual defense cooperation agreement (MDCA) provides for the operation by the United States of a naval support facility that exploits the strategically located deep-water port and airfield at Souda Bay in Crete.