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Germany Plans to Invest $4.3 Billion in Israeli Arrow 3 Anti-Missile system
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by i24 News
Israeli Prime Minister Benjamin Netanyahu and US Ambassador to Israel David Friedman watch a video of Israel’s US-backed Arrow-3 ballistic missile shield performing a series of live interception tests over Alaska, US, during a cabinet meeting in Jerusalem July 28 2019. Photo: Menahem Kahana/Pool via REUTERS.
i24 News – Germany has planned to acquire the Israeli Arrow 3 missile defense system by the end of the year, at a cost of around $4.3 billion, according to documents revealed by Reuters. The government should approve an initial payment of $495 million as early as next week.
The sophisticated system was designed to intercept ballistic missiles outside the earth’s atmosphere. It reportedly functions as the upper layer of Israel’s missile defense shield, which extends from the Iron Dome for short-range rockets, up to the Arrow 3 in order to stop any unconventional missile warhead at a safe altitude.
According to the revealed Finance Ministry documents, Berlin plans to sign an intergovernmental agreement with Israel for the acquisition of the Arrow 3 by the end of the year. And should the agreement not be concluded, Germany could lose some or all of its advance payments as compensation for costs incurred to date.
The newly reported cost of the Arrow 3 system, for the German Air Force, exceeds initial estimates by around one billion. Russia’s escalation of the conflict in Ukraine highlighted the shortage of ground-based air defense systems in many Western countries, such as Raytheon’s Patriot units or the more recent IRIS-T system.
The Arrow 3 was manufactured by Israel Aerospace Industries (IAI) and co-developed with the US, thus required approval from Washington. The deal was first reported in March 2022, as a countermeasure for Germany to potential threats from Moscow.
The Dutch defense ministry signed their first-ever defense export agreement with Israel in May, for Elbit’s PULS artillery rocket array. At the time, it was one of the largest purchases by a European country of an Israeli system, worth $305 million.
