Europe
Israeli defence firms expand German manufacturing footprint
Defence industry companies linked to Israel are steadily expanding their operations in Germany and plan to establish a rapidly growing number of arms factories across the country.
According to an analysis published by German Foreign Policy, these new arms factories contribute, on the one hand, to the swift rearmament of the German Armed Forces (Bundeswehr). On the other hand, should the war in the Near and Middle East escalate further, they allow Israeli companies to manufacture the weapons required by the Israeli armed forces from a safe distance.
This provides a safety net, for instance, in the event of another war of aggression against Iran.
This new form of defence cooperation between Germany and Israel builds on a partnership between arms manufacturers in both countries that has evolved since the mid-1950s.
For Germany, this cooperation offers access, at the very least, to the high-tech capabilities of Israel’s formidable and battle-tested military-industrial complex.
Export dependence of the Israeli defence industry
In the early 2020s, experts estimated the number of companies in Israel producing defence equipment wholly or at least partially at between 600 and 700.
At that time, these companies employed a total of around 100,000 workers; this figure accounted for slightly less than a quarter of all employees in Israeli manufacturing.
The three largest among them were the private firm Elbit, with an annual turnover of approximately $8 billion, alongside the state-owned companies Israel Aerospace Industries (IAI), with a turnover of $7.4 billion, and Rafael, with $6.8 billion (2025 figures).
By way of comparison, Germany’s largest defence industry company, Rheinmetall, recorded revenue of approximately €10 billion in 2025.
In order to generate attractive profits, the Israeli defence industry as a whole remains heavily reliant on exports, despite the sustained attrition suffered by the Israeli armed forces as a result of war.
Indeed, in recent years, exports have consistently accounted for 75% of its revenue; in total, approximately 7.5% of all Israeli exports originate from the defence sector.
According to experts, this state of affairs has expanded Israel’s sector to eight times the global average.
The “allure” of Israeli weapons systems
Industry insiders attribute the success of the Israeli defence sector and its allure for arms purchasers worldwide to several factors.
Israel’s drive to remain continuously better equipped and technologically superior to the region’s Arab states, Iran, and Türkiye is frequently cited.
Moreover, it is widely argued that the intimate ties between defence contractors and the Israeli armed forces contribute directly to the optimisation of Israeli weapons systems.
Reference is frequently made to a highly sophisticated culture of technological innovation. The foremost example of this is “Unit 8200,” which is attached to the military intelligence service and specialises in all forms of electronic reconnaissance and cyber operations.
Soldiers who leave the unit after three to five years of service are regarded as exceptionally qualified; these veterans enter the world of Israeli technology start-ups, which some have even likened to Silicon Valley.
Furthermore, Israeli weapons systems are routinely combat-tested. For instance, in late 2025, government officials from various countries, including Germany, were shown videos at a conference sponsored by the Israeli Ministry of Defence depicting drones striking a building in the Gaza Strip.
The objective was to encourage those nations to procure the drones.
The Bundeswehr’s quest for high-tech weaponry
German defence companies have collaborated with Israeli arms manufacturers for decades.
In addition to the regular bilateral arms trade that gathered momentum from the mid-1950s onwards, dedicated cooperation on high-tech weapons systems has been under way since at least the 1970s.
During that period, the Federal Republic of Germany commissioned Israel to develop a radar jammer for the Tornado fighter jet.
This equipment was tested by the Israeli Air Force during the 1982 invasion of Lebanon and proved exceptionally successful.
According to a study on German-Israeli defence cooperation, “electronic warfare” remained “a sector characterized by exceptionally close ties between Germany and Israel.”
Even in subsequent years, the Bundeswehr repeatedly procured high-tech weaponry from Israeli enterprises.
For example, the Heron 1 systems, the Bundeswehr’s first large unmanned aerial vehicles deployed to Afghanistan, were sourced from IAI. The Israeli enterprise worked in close cooperation with Rheinmetall on both delivery and operations.
The advanced Arrow 3 air defence system, which Germany is currently in the process of procuring, is likewise of Israeli origin.
This system is manufactured by IAI in collaboration with the US company Boeing.
German-Israeli joint defence ventures
Since the 1990s in particular, German and Israeli companies have also collaborated directly in the manufacture of military hardware.
In 1996, for instance, Rheinmetall and Israel Military Industries (a company subsequently acquired by Elbit) established a joint venture to develop ammunition.
Other joint ventures served primarily to market Israeli weapons systems across Europe.
In 1998, for example, EuroSpike, established in Germany by Rheinmetall (40%), Diehl Defence (40%), and Rafael (20%), facilitated the sale of anti-tank weapons produced by Rafael within Europe.
EL/M-2084 radar systems produced by IAI are marketed jointly by the Israeli holding company and Rheinmetall Canada. Sales were concluded with the Canadian armed forces in 2015 and with the Hungarian armed forces in 2020.
Rheinmetall Italia, meanwhile, manufactures Hero loitering munitions in partnership with the Israeli firm UVision.
At the end of 2025, both companies signed a contract worth hundreds of millions of euros to produce a substantial number of Hero drones for a NATO member state.
Eight new Israeli facilities in Germany
Israeli defence companies are currently taking the next step: beyond exporting weapons systems to Germany and conducting joint production with German arms manufacturers, they are expanding their own manufacturing footprints inside Germany.
The background to this development lies in the surging demand for military hardware not only in Israel, but particularly across European nations.
To meet this demand despite limited domestic manufacturing capacity, Israeli defence contractors are now establishing factories, primarily in Germany.
At the former Volkswagen plant in Osnabrück, for instance, Rafael will produce components and assemblies for air defence systems.
To this end, Volkswagen will sell the facility to the investor Aurelius Capital and the federal state of Lower Saxony.
Rafael is renowned for Israel’s Iron Dome air defence system, which it developed and produces in collaboration with IAI.
Elbit, meanwhile, plans to establish “up to eight new facilities” in Germany over the next few years to accommodate “well over 1,000” employees, as confirmed by Marian Rachow, the head of Elbit Germany and a former Airbus executive.
Protests have already begun mounting against one of these planned sites, situated in Sangerhausen, west of Halle.
Bilateral cooperation deepens
When asked why Israeli defence companies are presently prioritising investments in Germany, a former chief financial officer of the Israel Defense Forces was recently quoted as saying:
“Germany is the most important industrial hub in Europe and maintains close ties with Israel. That makes it a partner with whom we can formulate long-term plans.”
Furthermore, the German government is allocating colossal sums to military expansion.
CDU lawmaker Bastian Ernst, a member of the Bundestag Defence Committee who worked first at Rheinmetall and subsequently at Dynamit Nobel Defence, which is now owned by Rafael, before entering parliament in 2025, describes the establishment of factories in Germany by Israeli defence conglomerates as a “two-way safety net”:
“For Israel, this offers the security of having a production site capable of supplying them should they become embroiled in a conflict.”
He believes the Bundeswehr would benefit “if this technology is located in Germany and can be harnessed.”
Consequently, this appears to represent close collaboration designed to enhance the combat capabilities of both parties.
An opinion survey conducted across the European Union has revealed that 53% of bloc citizens oppose admitting Ukraine to the EU through an accelerated process in the coming years.
According to the study carried out by the Bertelsmann Foundation, 47% of EU residents support the idea of fast-track membership.
The most pronounced opposition to rapid accession was recorded in Romania at 60%, followed by Germany at 59%, and France and Poland at 57% each.
The lowest resistance to Ukraine’s accelerated membership was found in Sweden at 31%. This figure stood at 37% in Spain and Portugal, and remained at 43% in the Netherlands.
Domestic support for the process remains exceptionally high; 83% of the public in Ukraine want to join the bloc as soon as possible.
Europeans differ over defence contributions and strategic benefits
The survey also examined perceptions regarding the defence of the continent. Some 58% of Ukrainians believe that their “resistance against Russia’s military campaign protects the entire continent and the EU as a whole.”
In contrast, 29% of bloc citizens share the view that the EU and its member states contribute more to defending the union than Ukraine does.
While 23% of participants view the efforts of both sides as equal, the share of those who consider Ukraine to be the bloc’s “primary protector” remains at 16%.
The study also indicates that low expectations concerning the tangible benefits Ukraine would provide to the bloc contribute to the limited support for its membership.
Only 14% of surveyed Europeans believe that this accession will make the EU stronger and more influential on a global scale. Meanwhile, the proportion of respondents who anticipate that Ukraine’s entry will increase the bloc’s resilience was measured at 11%.
Timetable debate persists in the negotiation process
Ukraine applied for membership immediately after Russia’s military intervention and gained candidate status in 2022.
The accession process encompasses a 33-chapter reform package organised under six clusters, which aims to guarantee democratic and economic standards.
Formal accession talks began in June 2024. The negotiation process, which had long been blocked by Hungary, made progress after Peter Magyar took office as the country’s prime minister.
Magyar also succeeded in having the term “accelerated accession” for Ukraine removed from EU texts.
Magyar argued that a contrary approach would send the wrong message to Western Balkan nations, such as Serbia, Albania, Montenegro, and North Macedonia, which have worked towards membership for years.
Ukrainian President Volodymyr Zelenskyy has called for the membership process to be completed by 2027, stating that this would provide a fundamental security guarantee for both Ukraine and Europe.
On the other hand, circles within the bloc that oppose rushing the process insist on the complete fulfilment of all conditions, including anti-corruption measures.
Meanwhile, the EU Ambassador to Ukraine, Katarina Mathernova, points to 2030 as a likely accession date.
For membership to take place following the completion of negotiations, all 27 EU member states must grant unanimous approval.
So far, only the first of the six chapter clusters, covering fundamental values and principles such as the rule of law, human rights, and the judiciary, has been opened for Ukraine.
NATO Supreme Allied Commander Europe (SACEUR) Alexus Grynkewich has unveiled a new defence strategy aimed at rendering any attack against an alliance member entirely futile.
Speaking at the Warsaw Security Forum, Grynkewich said the concept, titled the “Theory of War”, is designed to prevent hostile elements from infiltrating NATO territory and waging conflict there.
Arguing that they aim to reassure the one billion people living within the alliance’s borders, Grynkewich maintained that they also wish to send a message to adversaries such as Russia that NATO is prepared for a potential invasion.
“If we are attacked, we are ready to fight even tonight,” Grynkewich said.
Three-stage defence plan enters into force
Approved by all 32 alliance members, the plan combines land forces and conventional weapons systems with advanced technologies such as unmanned aerial vehicles, counter-drone systems, and artificial intelligence.
Lessons drawn from ground and air combat in Ukraine, as well as current conflicts in the Middle East, play a decisive role in shaping the strategy.
According to Grynkewich, the new defence doctrine rests on three fundamental phases that form the core of NATO’s approach:
The first pillar of the plan, the “block” phase, focuses on preventing hostile forces from seizing allied territory.
In this context, NATO ground components will engage directly with attacking units, restrict their manoeuvrability, and neutralise forces attempting to breach alliance borders.
Should the assault continue, the second phase (“blunt”) will come into play, deploying autonomous systems requiring minimal human intervention alongside advanced sensor networks to slow the momentum of the attack and wear down advancing forces.
These systems will detect threats in real time, combining capabilities across different operational domains to halt the adversary’s advance.
The final stage, the “break” phase, will target not the attacking units directly, but the operational warfighting system that sustains them.
Command centres, supply chains, and logistics routes will be struck using long-range precision strike systems and sensor networks, eliminating the adversary’s ability to sustain military operations.
“Enemy commanders will not be able to direct their troops, their supply lines will be severed, and their logistics vehicles will be destroyed,” Grynkewich said.
Strategy aims to defend borders rather than gain territory
Noting that NATO has no intention of acquiring territory and that the strategy is entirely defence-oriented, Grynkewich said, “We have no plan, intention, or ambition beyond protecting our citizens and our territory.”
Stating that he considers the likelihood of a direct attack on alliance territory to be low, the commander nevertheless stated that they would respond without hesitation to any attempt targeting allies.
Addressing questions regarding US commitment to the alliance, Grynkewich recalled that Washington reaffirmed its adherence to Article 5 at the NATO summit in July.
Article 5, which forms the cornerstone of NATO’s collective defence principle, stipulates that an armed attack against one ally is considered an attack against all members.
Polish authorities have announced that German police detained two Turkish citizens suspected of setting fire to a Starlink station near Warsaw last month.
Tomasz Siemoniak, Poland’s minister coordinating the special services, told a news conference in Warsaw on Monday that Poland has requested the suspects’ extradition and has “no doubt” that Russian secret services were behind the arson attack.
“It should also be noted that Russian intelligence agencies are increasingly turning to people linked to the criminal underworld,” Siemoniak said at the press conference.
In a post on X, Prime Minister Donald Tusk described the incident as another “act of hybrid warfare” and said those responsible for the sabotage would be brought to justice in Poland.
Interior Minister Marcin Kierwinski said the two Turkish citizens would be charged in Poland with carrying out an act of sabotage on the orders of a foreign intelligence agency.
Power supply equipment at a Starlink ground station serving Eastern Europe, including Poland and Ukraine, caught fire on the night of 23 September.
The incident did not cause a major disruption to internet service. The blaze, however, completely destroyed the station’s electrical system and backup generator.
Poland, a key transit route for Western aid to Ukraine, has faced a series of suspicious incidents recently.
Numerous cyberattacks have targeted public utilities, including water and energy infrastructure as well as hospitals.
In addition, damage to a railway line between Warsaw and the Ukrainian border was attributed by officials to Russian sabotage.
In late July, a Russian missile also landed in Poland.
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