The deal brewing between Israel and Germany for the latter to buy Israel’s Arrow missile defense system has moved on a stage. According to a report by Reuters, the German government will ask legislators for approval next week for payment of an advance of over half a billions euros.
The report is based on documents that Reuters says it has seen. It says that the budget for buying the Arrow 3 system, including interceptor missiles, command and control systems, and the "Green Pine" radar system for detecting incoming missiles, has grown from €3 billion to €4 billion.
It is not clear what has been added to the original cost, but it should be pointed out that the German purchase goes beyond Germany itself. The German plan is to provide a defensive umbrella for the countries of Eastern Europe, Scandinavia, and the Baltics, which will be able to rely on the system’s detection systems and buy interceptors from Israel independently. "That will be only at a further stage," a senior Israeli source said in the past, "Germany will be the first to receive the system."
The German press and media have recently reported additional progress in talks on arms procurement between the two countries. "Now Germany will receive its own Iron Dome," weekly magazine Focus reported, referring to a comprehensive procurement of systems to intercept short-range rockets (Iron Dome) and ballistic missiles (Arrow 3).
The Germans have received a green light from the US, which was involved in the financing and the production of components for the Arrow 3 system. Final approval by a committee of Congress is still required, but the sides are already talking about delivery schedules. According to the report, partial delivery will take place as early as 2025.
Chancellor Olaf Scholz has said that the defense system should be deployed quickly, and has praised Israel’s capabilities in this area. The subject arose in a meeting with Prime Minister Benjamin Netanyahu in Berlin in March.
The current deal will be Israel’s largest ever defense export deal. If it falls through, Germany could lose part of the advance payment as compensation for costs incurred in Israel.
Published by Globes, Israel business news - en.globes.co.il - on June 11, 2023.
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