Amid scenes of destruction and hunger in Gaza and this week’s bombing in Qatar, frustrated European leaders are threatening sanctions on Israel and rethinking ties to their longtime ally.
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But for all their outrage – including a push for Palestinian statehood and some limited curbs on arms sales – one area they have not touched is Israel’s multibillion-dollar defence industry. European armies are the biggest customers of Israeli-made weapons and defence systems, buying US$8 billion worth last year, or just over half of exports, and demand is only likely to grow.
Prodded by US President Donald Trump, Nato members in Europe have committed to step up their defence-related spending to 5 per cent of GDP annually by 2035, versus a 2 per cent requirement that has been in place since 2014, a drive that has taken on more urgency since Russia’s invasion of Ukraine in 2022.
That may be hard to achieve without Israel, whose three biggest defence companies are deeply integrated into their economies and military supply chains.
“Sentiment towards Israel may be negative but customers in Europe and elsewhere are looking to buy the best possible products and there is no way around the fact that Israeli systems are combat proven,” said Elad Kraus, head of Research at Tel Aviv-base based Meitav Brokerage Services Ltd.
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