Berlin – On October 21, 2025, Germany’s Bundeswehr finalized a €2 billion ($2.3 billion) contract with EuroSpike, a joint venture led by Israeli defense contractor Rafael Advanced Defense Systems, to supply Spike anti-tank missiles, marking one of the largest European defense deals for Israeli firms amid controversy. The agreement, signed through NATO’s Support and Procurement Agency, includes procurement and maintenance of the Spike LR2 system, with production at EuroSpike’s German facility, where Rafael holds a 20% stake alongside Rheinmetall and Diehl Defense (40% each).
The deal proceeds despite Germany’s arms embargo on Israel, imposed earlier this year by Chancellor Friedrich Merz following the IDF’s extension of the Gaza war, by channeling through EuroSpike’s European structure. In 2025 alone, Germany purchased €315 million in Israeli weaponry, exceeding the prior four years combined, underscoring deepening ties. Spike LR2, a fifth-generation fiber-optic guided missile with 5.5 km range, bolsters Germany’s anti-armor capabilities amid NATO’s rearmament push post-Ukraine invasion.
