Manufacturing Rights Revoked: Spain Nixes Deal for Israeli Anti-Tank Missiles
Army missile contract cancelled with Israeli manufacturer
The Spanish Ministry of Defense has choppered the manufacturing license of an Israeli company, halting production of 168 Spike LR2 anti-tank missile systems in Spain. According to reliable defense sources, this decision was made following the contract's announcement on October 3, 2023, just before the Hamas attack on Israel engendering an ongoing response. The now-void contract was worth a whopping €285 million and was bestowed upon Spanish company Pap-Tecnos—a subsidiary of Israeli company Rafael Advanced Defense Systems.
These sources assure that after the revocation of the licenses, efforts are underway to switch gears on the program. Last Friday, the Secretary of State for Defense, Amparo Valcarce, noted that Spain is actively working on a gradual disconnection from Israel, aiming to avoid any reliance on them.
She clarified that Spain does not have any active arms-related negotiations with Israel, though some programs show technological dependencies on Israeli firms. Consequently, Defense is devising disconnection plans.
Albares has stated that the weapons embargo on Israel would only affect sales and encourages other countries to join in.
After this decision, Defense is scrambling to find a replacement for the contract, as the ministry maintained by Margarita Robles assures the missile manufacturing program is unstoppable.
This Wednesday, Government spokeswoman Pilar Alegría declared that while "the implications of the measure are still being assessed," the ultimate objective is to achieve "complete disconnection from Israeli technology."
The contract drafted in 2023 was based on the claim that the materials fell under the "indispensable components" category, a claim the Government has defended so far. At the time, officials argued the obsolescence of the existing systems necessitated their replacement by more modern ones. These modernized materials are already in service in other allied countries’ armies and were the only systems Rafael Advanced Defense Systems could produce.
The commercial relationship with Israel has sparked debates within the Government recently. In late April, the Executive unilaterally terminated a contract with an Israeli company due to an intra-coalition conflict. This disagreement threatened to fracture the partnership and prompted the threat of IU leaving the Government.
Last week, Congress approved an initiative from Sumar, ERC, Podemos, and BNG to maintain the embargo on the purchase and sale of military material with Israel, with the votes of PSOE and Junts in favor.
Israel and Spain's Defense Partnership in Flux
This contract cancellation and Spain's planned disengagement from Israeli technology mark a significant shift in its defense policies. Spain is looking to sever ties with Israeli military technology, a move inspired by ethical, political considerations, and increasing criticism of Israel's actions in Gaza. The government has also recently dissolved other deals involving Israeli technology, such as a contract for Israeli-made bullets[1][2][4].
Spain is considering alternative systems, including the U.S.-made FGM-148F Javelin developed by Raytheon and Lockheed Martin, to replace the Spike LR2 missiles[4]. This move underscores Spain's desire to reduce its dependence on Israeli military technology and align its defense strategies with international political trends[5].
The Spanish government is actively seeking to replace the canceled contract with Israeli company Rafael Advanced Defense Systems, considering alternatives such as the U.S.-made FGM-148F Javelin. This shift in defense policies is a result of Spain's intention to sever ties with Israeli military technology due to ethical, political considerations, and increasing criticism of Israel's actions in Gaza. Meanwhile, efforts are underway within the Spanish finance sector to evaluate the potential financial implications of this decision, as Spain aims to avoid any reliance on Israeli firms not only in the manufacturing industry, but also in the aerospace and business sectors.
