In a surprising turn of events, the Russia-Ukraine war has left Israel richer by billions, thanks to a spike in European defence spending. Three big nations, Germany, Finland, and the Netherlands, have inked million-dollar deals with Israel, which has capitalized on the opportunity presented by a lack of trust in the US.
The EU’s defense industry was previously dominated by the US, but the current geopolitical climate has resulted in a shift toward Israel, a trend that shows no signs of slowing down. The cost of central and western European countries’ defence spending was $345 billion in 2022, up 30% from 2013, according to the Stockholm International Peace Research Institute.
As a result, there has been a growing acquisition of Israeli defence technology, such as an early warning system that connects the military’s radar and air defence networks to the alert system. This Israeli assistance could save many lives, enabling Europe to respond more effectively to attacks by intruders.
The Europe-Israel Defence Connection
Coming to the specifics, Germany is keen on acquiring the Arrow 3 air defence system from Israel, with an estimated cost of $3.3 billion. This strategic system is capable of intercepting ballistic missiles above the Earth’s atmosphere, and Berlin hopes it will protect against Russian missile threats.
Similarly, the Finnish government has decided to purchase Israel’s David’s Sling air defence system for $351 million, reflecting the strong defense ties between the two countries. The deal includes interceptors, launchers, and radars that will be connected to Finnish command and control systems.
Despite being commercial competitors in other areas, Rafael, Elta, and Elbit Systems joined forces to develop cutting-edge systems. The Netherlands has also chosen to purchase Elbit’s Precise and Universal Launch System (PULS) as a safeguard against mounting threats in the midst of war.
Additionally, Israel has inked a deal worth 1.44 billion shekels ($400 million) to supply Greece with Spike anti-tank missiles. It is worth mentioning that these systems and weapons have already demonstrated their effectiveness, prompting the three European countries to put their faith in Israel’s defence production capabilities.
Israeli defence industries witnessed a significant increase in new contracts valued at a total of $11.3 billion in 2021, compared to $8.6 billion in the previous year. As of September, Israel had nearly 4,000 military sales contracts, down from 5,400 sales contracts in 2020. Although the statistics for 2022 are yet to be released, the current trend suggests that Israel is poised to continue this success.
And, all of this is taking place under US’ watch.
Read More: NATO data leak could spell doom for US Military-Industry Complex
The Waning Confidence
It’s a well-known fact that wars worldwide and the resulting military spending have benefited the American economy. Therefore, the US is often seen making billions in a fight.
Europe, which typically purchases new weapons from the United States, is increasingly considering purchasing them from other nations like Israel and South Korea instead because, first, US defence equipment has been tested vehemently in Ukraine, and second, the cost of several American defence systems is just unbearable.
Read More: South Korea delivers a multibillion jolt to the American Military-Industrial Complex
This development has propelled Israel to the forefront of the European defence industry, making the country richer by 4.6 billion dollars or maybe even higher.
As more and more European countries look to enhance their defence capabilities, Israel is likely to continue reaping the benefits of this opportunity, solidifying its position as a key player in the global defence industry. Thus, while the Ukraine-Russia war rages on, Netanyahu smiles with charm in Tel Aviv.
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