Tel Aviv [Israel], October 22 (ANI/TPS): Israeli defence contractor Rafael Advanced Defence Systems has secured a EUR2 billion ($2.3 billion) contract to supply the German army with Spike anti-tank missiles, marking one of the largest European defence deals for Israel's military industries in recent years.

The sale will be carried out through EuroSpike, a joint venture in which Rafael holds a 20 per cent stake alongside German firms Rheinmetall and Diehl Defence, each owning 40 per cent. EuroSpike manages the marketing and production of Spike missiles in Europe, with manufacturing planned at its German facility.

The Spike family, Rafael's flagship missile system, is known for its operational flexibility and compatibility with multiple launch platforms. Rafael has sold Spike missiles to over 40 countries, including approximately half of NATO's member states. This new contract represents Germany's largest acquisition of the system to date.

The deal comes amid political tensions following German Chancellor Friedrich Merz's earlier decision to impose an arms embargo on Israel in August, after Israel's Security Cabinet approved plans for the full military takeover of Gaza City. Merz's embargo was criticised even by members of his own Christian Democratic Union party. Israel is Germany's second-largest arms partner after the United States.

Israel's defence exports to Germany have included record deals such as the EUR3.6 billion ($4.1 billion) Arrow 3 missile defence system signed before the October 7 conflict, with deliveries expected by year-end. German officials have indicated interest in procuring the upgraded Arrow 4 system, designed to bolster ballistic missile defence.

Israel set an all-time record for defence exports in 2024, with sales reaching $14.795 billion, according to Defence Ministry figures released in June. This marks a 13 per cent increase over the previous year and the fourth consecutive year the record has been broken.

Demand for Israeli military technology surged as European countries increased their defense budgets in response to Russia's war in Ukraine. Despite two years of war with Hamas, Israeli defence firms maintained continuous production for both the Israel Defence Forces and international clients. (ANI/TPS)