Efforts were made in the 1990s to improve relations between the two countries and a defence cooperation agreement was signed. However, tensions have been caused by Greece`s traditional support for the Palestinians, Greece`s preference for Arabs, and support for Palestinian political violence (notably under Prime Minister Andreas Papandreou, 1981-89 and 1993-96], as well as Israeli military cooperation with Turkey, and controversies over the Greek Orthodox Patriarchate in Jerusalem.  Bilateral trade doubled between 1989 and 1995. This year, Israel exported $200 million in chemicals and petroleum products to Greece and imported $150 million in cement, food and building materials. [Citation required] On 8 Greece, Israel and Cyprus signed the tripartite Memorandum of Understanding on energy at the end of the one-year negotiations in Nicosia. Negotiations took place between the Israeli Minister of Energy and Water Resources, Silvan Shalom, the Cypriot Minister of Agriculture, Natural Resources and Environment, Mr Nicos Kouyialis, and the Greek Minister of Environment, Energy and Climate Change, George Lakkotrypis.  The 2,000-megawatt EuroAsia line aims to free Cyprus and Israel from energy insulation through cheaper electricity, as argued by George Lakkotrypis. Silvan Shalom announced that the agreement was „historic“, insisting that it showed the strong ties between the countries of the three countries, adding that the electric canal would become a cable and export electricity to the European energy market.    In 2013, Greek Prime Minister Antonis Samaras said Israel had a special role to play in Europe`s energy supply and argued that it could become an important energy hub.  After the signing of ceasefire agreements confirming Israel`s survival after the 1948 Arab-Israeli war, Greece recognized the State of Israel on March 15, 1949, although it was diplomatically represented in Tel Aviv at a lower level than the embassy.
Greece is one of only three countries that Israel has signed a Status of Armed Forces Agreement (SOFA), the other being the United States and Cyprus. The agreement allows Israel to host Greek armed forces on its territory or deploy Israeli forces on the territory of Greece, within the framework of the military and comprehensive security agreements concluded between the two countries.  The Minister of Foreign Affairs, Mr. Powell and Greek Foreign Minister Papandreou today signed the Comprehensive Technical Agreement (CTA) between the United States and Greece. The goal of the agreement is to modernize and strengthen the U.S.-Greece defense relationship and lay the groundwork for a twenty-first-century defense partnership. CTA looks at the status of U.S. forces in Greece and Greek forces/officers in the U.S. on official duty. Foreign Minister Powell and Greek Foreign Minister Papandreou today signed the Comprehensive Technical Agreement (CTA) between the United States and Greece.
The goal of the agreement is to modernize and strengthen the U.S.-Greece defense relationship and lay the groundwork for a twenty-first-century defense partnership. CTA looks at the status of U.S. forces in Greece and Greek forces/officers in the U.S. on official duty. The United States and Greece have spent more than two years negotiating the deal. It consolidates a number of provisions relating to the status of US forces in Greece, which are currently contained in numerous bilateral agreements that complement the NATO Status of Armed Forces Agreement (SOFA), and contains provisions on the corresponding sofa concerning the status of the Greek armed forces in the United States. The Greek CTA was conceived as the last part of three major agreements providing for a modernized defense relationship with Greece. The other two main agreements that are already in force are NATO`s SOFA and the 1990 Mutual Defense Cooperation Agreement (MDCA) which updated the U.S. headquarters agreements in Greece and set the obligation to negotiate and sign the CTA. . .