A Spike anti-tank missile system used by the Slovenian army. (Photo by Mario Skraban/Getty Images)

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Germany to buy Israeli missiles in €2 billion deal despite weapons embargo

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Germany is refusing to sell weapons to Israel but has no problem buying Israeli missiles, to judge by a deal revealed on October 21 by Israeli media. The German Army will reportedly buy anti-tank missiles designed by Israeli defence company Rafael for up to €2 billion – one of the biggest for Israel’s defence sector over the past years.

Germany had imposed a weapons embargo on Israel in August over supposed human rights violations in the Gaza War.

The German defence ministry told Brussels Signal that they were acknolwediging the Israeli reports and did not deny them.

Acoording to a ministry spokesperson the contract had been signed between defence consortium EuroSpike and the NATO Support and Procurement Agency (NSPA). NSPA provides acquisition support to NATO members. According to Israeli news some of the missiles may also end up in other NATO countries.

The contract covers the acquisition of an unnamed quantity of Spike anti-tank missile as well as system maintenance equipment. The missiles will mostly be manufactured in Germany by EuroSpike, a joint venture between Rafael and German defence companies Rheinmetall and Diehl with four production sites across Germany.

According to industry sources quoted by Israeli newspaper Calcalist, this business structure helped to make the deal possible, allowing Berlin to sign the contract despite diplomatic fallout surrounding Israel.

On August 8, German Chancellor Friedrich Merz had announced a surprise arms export embargo on Israel.

Merz said his decision was motivated by the war in Gaza and that his government could not deliver arms for a conflict that might claim hundreds of thousands of civilian victims.

After the ban was announced, German arms exports to Israel fell to zero in short order.

Conversely, German is importing Israeli-made weapons at an unprecedented pace. By the end of September, the army procurement office has reportedly placed orders totalling €315 million – about 50 per cent more than in the previous four years combined.

The Spike anti-tank missile is Rafael’s best-selling weapons system and known for its operational simplicity and compatibility with different launching pads. The Israeli defence contractor has sold the system to more than 40 countries worldwide, including more than 20 NATO members.

Rafael is Israel’s third-largest defence company by turnover with a revenue of $ 4.85 billion (€4.18 billion) in 2024 and wholly owned by the State of Israel.

EuroSpike was founded as a joint venture between Rafael (20 per cent), Rheinmetall (40 per cent) and Diehl (40 per cent) in 2004 to promote Israeli anti-tank missiles in Europe.

Several European Union countries have bought Spike missiles. Latvia signed a contract with EuroSpike valued at €81 million in June with delivery starting in 2028.

Spain had also signed a deal with Rafael for Spike missiles worth €285 million but reneged on the agreement in June for political reasons. Shortly afterwards, the government of Spanish Prime Minister Pedro Sánchez introduced a law banning any import or export of weapons from or to Israel.

Brussels Signal contacted EuroSpike for comment but was informed that management was not answering any media inquiries as a matter of principle.

Brussels Signal contacted NSPA for comment, but had not heard back at the time of writing.