Akahi News reports that Israeli defence contractor Rafael Advanced Defense Systems has secured a landmark contract worth approximately €2 billion to supply the German Army with its advanced Spike anti-tank missiles, marking one of the largest Israeli defence deals in Europe in recent years.

A Surprising Turn After Germany’s Earlier Embargo

The agreement comes as a surprise following the arms embargo imposed on Israel earlier this year by German Chancellor Friedrich Merz, in protest against Israel’s controversial decision to extend its military operations in Gaza.

However, insiders told Akahi News that the deal’s structure—executed through EuroSpike GmbH, a joint venture between Rafael (20%), Rheinmetall (40%), and Diehl Defense (40%)—enabled Berlin to move forward without technically violating the embargo.

Production of the missile systems will reportedly take place in EuroSpike’s facilities in Germany, ensuring compliance with local industrial and political frameworks.

Spike Missile: Israel’s Top Global Export

The Spike missile remains Rafael’s most successful weapon system, known for its operational simplicity, precision targeting, and multi-platform compatibility. To date, the missile has been sold to over 40 countries, including 20 NATO members, reinforcing its position as a core component of modern anti-tank warfare.

According to Akahi News findings, this latest contract represents Germany’s largest-ever procurement of the Spike system and is seen as a significant endorsement of Israeli military technology despite ongoing international criticism of Israel’s actions in Gaza.

In contrast, other European nations have distanced themselves from Israeli arms purchases. Spain, for example, recently cancelled an order for 1,700 Spike missiles and 170 launchers worth about €250 million, citing humanitarian concerns over the Gaza conflict.

A Strategic Alliance Strengthened

Germany remains Israel’s second-largest defence partner after the United States. Before the October 7 war, Israel Aerospace Industries (IAI) also finalised a historic €3.3 billion Arrow 3 missile defence deal with Berlin—the largest in Israel’s defence export history.

Reports gathered by Akahi News suggest that IAI is expected to deliver the first Arrow 3 interceptors by the end of 2025, while discussions are ongoing for a potential Arrow 4 acquisition in the future.

Rafael vs IAI: The Battle for Market Dominance

The deal also intensifies competition between Israel’s two defence giants—Rafael and Israel Aerospace Industries. While Rafael focuses on maintaining its dominance with the Spike family, IAI has introduced a new generation of its long-serving Lahat missile, dubbed “Lahat Alpha.”

According to IAI, the Lahat Alpha can engage targets over 20 kilometres away, using laser guidance instead of GPS. This allows precision strikes even under electronic jamming conditions, giving it an advantage in modern, contested battlefields.

Analysts: A Tactical Win for Both Sides

Defence analysts who spoke with Akahi News believe the German-Israeli missile deal represents a strategic balancing act—allowing Berlin to enhance its military capabilities while maintaining diplomatic flexibility amid growing European divisions over arms sales to Israel.

“This deal underscores how geopolitical realities often outweigh political rhetoric,” one European security expert noted. “Germany needs advanced deterrence systems, and Israel continues to be one of the most trusted suppliers in that regard.”

Thanks. By Joseph Iyaji | Akahi News
Akahi News http://www.akahinews.org