The United States has granted approval for Israel to export a jointly developed missile defense system to Germany, marking a milestone in defense collaborations and signaling a new level of strategic integration among the three nations. The agreement, centered on the Arrow 3 system, stands as the largest defense pact in Israel’s history, reflecting enduring security commitments in a rapidly evolving European security landscape.
Officials from Israel’s Ministry of Defense confirmed that the U.S. State Department notified the head of the Defense Ministry, Yoav Gallant, of the clearance to proceed with the sale. This notification clears the way for the next steps in formalizing the arrangement, with high-ranking Israeli and German military officers expected to sign a letter of commitment in the coming weeks.
As part of the initial phase, Germany is poised to provide a down payment of roughly $600 million to Israel. This upfront funding demonstrates Germany’s readiness to participate in a multi-layered missile defense approach and to integrate Arrow 3 into its national security architecture.
The total value of the contract is set at approximately $3.5 billion, a figure that has undergone revisions from earlier reports, and it is anticipated to be finalized by the end of 2023 after obtaining approvals from the respective parliaments in both countries. Berlin envisions delivering the Arrow 3 system in the final quarter of 2025, aligning procurement timelines with broader European defense objectives.
Germany’s defense strategy includes dedicating a substantial portion of its budget to strengthening its missile defense capabilities. Bloomberg has reported that Germany is negotiating with multiple defense firms to create a multi-layer anti-missile shield aimed at enhancing national resilience against potential threats, with a projected investment around 17 billion euros. This approach underscores a commitment to diversified defense layers and interoperability with allied systems.
Earlier reports indicated ongoing negotiations between Israeli and German defense authorities regarding the supply of Arrow 3 systems to Germany, signaling a long-term collaboration that fuses Israel’s sophisticated missile defense technology with Germany’s strategic security priorities.