Israeli defense exports to Europe jumped to 54% of overall defense exports last year, up from just over 33% in 2023. The reason for the current surge in Israeli defense exports to Europe is clear. The Russian invasion of Ukraine in early 2022 ended an era of peace and plunged the continent into an arms race and military reconstruction. The current threat by the US to abandon Europe to its fate has spurred the continent's governments to allocate huge budgets to procure advanced defense systems, to prioritize increasing the size and strength of their armed forces and neglected military, and pragmatically prepare for the risk of war with Russia within a few years. Israeli defense firms with their technological advantages, and great competitiveness have found themselves able to develop ties with European countries, Orders, as the data released this week by the Ministry of Defense demonstrate, have been flowing in at a tremendous pace.
The more complicated question is to what extent European countries are currently dependent on Israeli weapons systems, and what this means.
The issue arises as most European countries are imposing a de facto embargo on arms sales to Israel due to the war in Gaza. These include export restrictions imposed by the UK on weapons used by the Israeli army in the Gaza Strip, and even hints from the new German Foreign Minister Johann Wadephul that Berlin will "reexamine" arms exports to Israel based on the situation in Gaza. According to security and diplomatic experts that "Globes" spoke to, the answer to the question of dependence is complex, related to the nature of the systems purchased and varying from country to country. In any case, many of them say, a theoretical threat not to supply arms to someone who does not supply arms to Israel, is a card that Israel would be unwise to play openly.
Huge contracts with many countries in Europe
European countries have become major customers of Israeli defense firms in recent years. In the field of air defense, Israeli companies have signed huge contracts in Germany (Arrow 3, Israel Aerospace Industries (IAI), €3.5 billion), Finland (David's Sling, Rafael, €350 million), Greece (Integrated Systems, IAI and Rafael, €2 billion) and Slovakia (Barak MX system, IAI, €500 million). Elbit's artillery deals (PULS and ATMOS systems) worth more than €1 billion have been signed with a host of European countries, including the Netherlands (€305 million) and Denmark (€250 million). So are deals for the sale of Rafael-made Spike missiles, command and control systems, battlefield digitalization, and Trophy systems to protect tanks and armored personnel carriers.
"There is no doubt that there is strong demand right now for Israeli defense industries in Europe, given the fact that domestic European industries are unable to produce enough, and given the constant donations to Ukraine," says a source in Israel's defense industries active in Europe. Israeli exports have many advantages, including battlefield experience, flexibility and speed, and the export of knowhow as part of the deals.
"What we hear from the professional bodies we are in contact with, representatives of the European armies and defense ministries, is completely different from what we hear in the media from governments," notes another source. "There is great demand for Israeli products even from countries that are critical of Israel abroad, partly because of the desire to break away from dependence on the US, and the advantages inherent in Israeli products."
Rejecting the allusion to a "mutual embargo"
The EU, for example, plans to limit investments in a multibillion-dollar armament fund it is establishing exclusively to EU companies, and perhaps also to UK companies. German defense industries are setting up new production lines across Europe. France and Italy are leading the way in domestic production of drones, artillery, and more.
However, most of the sources we spoke to reject the suggestion of a "mutual embargo" towards Europe. "It is a clear Israeli interest to export to European countries, and this is a sector that is experiencing incredible growth. Quite the opposite is true. Up until now, we have worked hard to prove that we are worthy partners - to overcome the opposition that we are not part of NATO, not part of the EU, to compensate for this with our own advantages. Now the fear is that we will once again become marginalized," one of the sources noted.
This concern has intensified over the past year, after France sent a resounding message to the defense industry and banned companies linked to Israel from exhibiting at the annual Eurosatory defense show about a year ago. European public opinion is gradually eroding the remnants of support that European governments expressed for Israel after October 7, 2023. "Security has become the number one issue on the public agenda, and those who ultimately decide are the parliaments in Europe, not governments in stealth. The less popular Israel becomes, the more 'toxic' procurement deals from Israel will become in the eyes of the public," a diplomatic source believes.
Defense exports as part of international relations
The announcement earlier this week by Spain that it is canceling a deal worth €250 million for local production of the Spike missile in collaboration wioth Rafael illustrates how far some European countries are prepared to go to sever security ties with Israel. The government in Madrid may face a fine for canceling the contract, which had previously deterred it from canceling it, but under pressure from coalition partners, the decision was made.
"Israel is too small a player on the world stage to threaten countries in an outright manner," says one source. Another source, however, believes that Israel has the ability to try and sway countries in its favor. "This is a very delicate dynamic," he says, "These are deals that are signed between governments, and that require negotiations at the highest levels. There is a lot of room behind the scenes for influence."
On the Israeli side, there are those who also hope that the Europeans will "understand for themselves" the importance. German Defense Minister Boris Pistorius said at a meeting discussing arms exports to Israel that "sensitivity must be demonstrated because of the massive cooperation between Germany and Israel and the need for the rapid deployment of the Arrow system," "Der Spiegel" reported. "Defense exports are part of our relationship with the world. We want to be reliable and equal partners. Security cooperation is beyond blackmail and we do not want to hold arms deals hostage," a source said. "Dependency is not the right term," he added. "There are many joint development deals that are built on trust and a lasting relationship. This is an advantage for Israel and we want to maintain it."
Published by Globes, Israel business news - en.globes.co.il - on June 5, 2025.
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