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Arrow 3 missile system launch. Germany's $3.5bn defense deal with Israel. - Supply Chain News

Germany Acquires Israeli Arrow 3 Missile System in a $3.5bn Defense Deal

09/28/2023
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Germany Acquires Israeli Arrow 3 Missile System in a $3.5bn Defense Deal

by Richie
09/28/2023
in Global Trade, International Relations

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Germany has finalized a deal to purchase the Israeli Arrow 3 hypersonic missile defense system, marking a significant step in enhancing European air defense capabilities. German Defence Minister Boris Pistorius, alongside his Israeli counterpart Yoav Gallant, announced the deal in Berlin, describing it as a “historic day” for both nations.

The agreement, valued at approximately $3.5 billion (3.3 billion euros), represents the largest sale in the history of Israel’s military industry. The Arrow 3 system, designed to intercept missiles above the Earth’s atmosphere, is expected to be a crucial component of German air defense, with Pistorius emphasizing its importance for future readiness.

This acquisition is part of Germany’s broader initiative to strengthen NATO’s air defenses in Europe, particularly in response to Russia’s invasion of Ukraine. Germany has been advocating for NATO allies to collaboratively purchase deterrence systems.

Highlighting the significance of the deal, Gallant reflected on the historical relationship between Israel and Germany, noting the progress made since World War II.

Developed jointly by Israel and the United States, the Arrow 3 system is capable of offering protection not only for Germany but also for neighboring European Union states. Its deployment is flexible, allowing it to be positioned in response to various threats. The system has been operational in Israel since 2017, serving as a defense against attacks from countries like Iran and Syria.

Funding for the purchase comes from a 100-billion-euro ($105 billion) defense fund established by German Chancellor Olaf Scholz in the wake of Ukraine’s conflict. The Arrow 3 system is expected to be delivered to Germany in the final quarter of 2025.

The European Sky Shield Initiative, led by Germany, involves joint procurement of various air defense systems, including the German IRIS-T, the American Patriot system, and now the Israeli Arrow 3. While more than a dozen European countries have joined this initiative, some nations, including France and Poland, have not signed up, with France advocating for an air defense solution based on European equipment.

Catch the latest supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.

#GermanyIsraelDefense #Arrow3MissileSystem #EuropeanAirDefense #HypersonicDefense #NATOAirShield #MilitaryTechnology #DefensePartnership #EuropeanSecurity #MissileDefenseSystem #GermanyIsraelDeal #HistoricDefenseDeal #EUDefense #NATOStrength #DefenseCollaboration #GermanyDefenseSpending #EuropeanSkyShield

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