Germany Breaks Its Own Embargo: Berlin Signs €2 Billion Missile Deal With Israel’s Rafael. Despite Chancellor Merz’s ban, Berlin quietly greenlights one of the largest Israeli arms contracts in European history

In a stunning reversal that underscores both the hypocrisy and strategic necessity driving European defense policy, Germany has signed a €2 billion deal with Israeli defense giant Rafael Advanced Defense Systems to equip its army with Spike anti-tank missiles, mere months after Chancellor Friedrich Merz imposed an arms embargo on Israel over its military campaign in Gaza.

The agreement, brokered through EuroSpike GmbH, Rafael’s European joint venture with Rheinmetall and Diehl Defense, represents not only a triumph of Israeli technology but a dramatic contradiction in Germany’s own moral posturing.

Germany has signed a huge deal to purchase Spike anti-tank missiles produced by the Israeli company Rafael, worth 2 billion euros. pic.twitter.com/zPpFoZwCge

— Sprinter Press News (@SprinterPress) October 21, 2025

The “Embargo Exception” That Exposed Europe’s Double Standard

Berlin’s move reveals what has long been true: Europe’s ethical outrage ends where its defense needs begin. While Merz publicly condemned Israel’s continued operations in Gaza, his government simultaneously relied on Israeli innovation to fortify Germany’s military backbone.

The Spike family of guided missiles, produced under license at EuroSpike’s German facilities, offers both plausible deniability and logistical advantage, allowing Berlin to claim domestic production even as it buys the crown jewel of Israeli battlefield engineering.

“Technically,” sources note, “Germany isn’t importing Israeli weapons, it’s co-manufacturing them.” But in reality, every Spike fired from a German launcher bears the DNA of Rafael’s design, Israeli combat experience, and decades of battlefield validation against tanks, fortifications, and insurgent positions.

Germany 🇩🇪 has imposed an arms embargo on Israel 🇮🇱

The result? The CEO of Renk, a major German arms manufacturer, announced they will shift production to the US 🇺🇸 instead.

Europe's embargo on Israel will only damage Europe's own economy and bankrupt its moral standing. pic.twitter.com/9ExYZ4qKYo

— Dr. Eli David (@DrEliDavid) August 13, 2025

From Gaza to Berlin: The Weapon Europe Still Can’t Resist

The Spike is more than a missile. It’s Rafael’s global ambassador, a modular, multi-platform weapon that can be mounted on everything from attack helicopters to ground vehicles and naval systems. Used by over 40 countries, including half of NATO, it has become synonymous with precision and reliability under real-world combat stress.

While Spain recently flaunted its “moral clarity” by canceling a €250 million order for Spike missiles over “humanitarian concerns,” Berlin quietly chose realism over rhetoric. “Spain’s decision,” one industry analyst told The Judean, “was symbolism. Germany’s was survival.”

Defense Ties That Outlast Politics

Germany remains Israel’s second-largest defense partner after the United States, and the relationship has only deepened since the October 7 war. Just last year, Berlin signed the €3.3 billion Arrow 3 missile defense contract with Israel Aerospace Industries (IAI), the largest defense export in Israeli history.

With Arrow 3 interceptors slated for delivery by year’s end, Germany is already eyeing the next-generation Arrow 4, which promises even greater interception range and layered defense capabilities against ballistic and hypersonic threats.

This latest Rafael-EuroSpike deal complements the Arrow program, effectively intertwining Germany’s national defense with Israel’s defense ecosystem, despite the political optics of Merz’s embargo.

Meanwhile in Israel: Rivalry Fuels Innovation

As Rafael cements its dominance in the European anti-tank market, domestic rival Israel Aerospace Industries is firing back with a new entrant, the Lahat Alpha, a reinvention of its three-decade-old precision missile.

Capable of striking targets over 20 kilometers away, double its predecessor’s range, the Lahat Alpha uses laser guidance rather than GPS, ensuring accuracy even in electronically jammed or GPS-denied environments.

Unlike traditional systems, it doesn’t require direct line of sight, offering battlefield flexibility that rivals and even surpasses some Western alternatives. In a region where every innovation doubles as deterrence, Israel’s defense industry continues to set the global pace.

Germany signs €2 billion deal for Israeli Spike missiles despite arms embargo.

Rafael’s partnership with German firms allows the deal to bypass political constraints as Europe rethinks ties with Israel.https://t.co/QGUwVqSSBM

— CTech (@Calcalistech) October 21, 2025

Editorial Analysis: Europe’s Moral Theater Meets Strategic Reality

Germany’s purchase of Spike missiles under an “arms embargo” exposes the hollow nature of Europe’s self-imposed restrictions. It’s a diplomatic shell game, public scolding for political optics, private cooperation for survival.

At its core, this €2 billion deal signals that when Europe’s security is on the line, Israel is not an outcast, it is indispensable.

As one senior Israeli defense official put it bluntly:

“They can boycott our politics, but they can’t boycott our technology.”