The Spanish defense industry is in turmoil over the arms embargo on Israel.

In an institutional statement from La Moncloa Palace, the President of the Government recalled that the Jewish people have suffered countless persecutions and injustices throughout their lives. "Including the most atrocious, the Holocaust." After "so much suffering, they deserve to have their own state and feel safe there. That is why the Government and Spanish society have condemned Hamas's kidnappings and terrorist attacks from day one. But with the same conviction," Sánchez emphasized, "the Government believes that it is one thing to protect your country and your society and another to bomb hospitals and starve innocent children." width="104">

The uncertainty in the Spanish defense industry that maintains relations with Israeli companies relates to what the embargo will affect. "Will it only affect new contracts or already signed ones? In this case, would there be penalties for canceling agreements?" one industry executive asked yesterday. It is also yet to be determined whether the measure will apply only to the military sector or if it will also affect technology that could end up in dual use.

The State Secretariat for Trade estimates Israel's imports of military equipment at 66.1 million euros from October 2023, the date of the Hamas attacks and the offensive by Netanyahu's army, until today. 33.5 million euros correspond to purchases of "weapons and ammunition" and 33.6 million euros correspond to the acquisition of "armored vehicles and tanks." Exports, meanwhile, amount to 45.7 million euros. However, trade relations with Israeli defense companies are broader, and the embargo could therefore have far-reaching consequences for Spanish firms.

One of the most prominent contracts is the high-mobility rocket launcher system project, known as Silam, which has been manufactured in Spain by a consortium formed by EM&E (Escribano), Rheinmetall, Tecnobit, and FMG, under license from the Israeli company Elbit Systems. The Ministry of Defense ordered the Israeli firm to be discontinued and the project to be Spanish-based, although the technological alternative is still unknown. The embargo could also affect Telefónica, which, along with Icox, is the manufacturer of the Armed Forces' new E-Lynx radios. These devices, also installed in the 8x8 Dragón armored vehicle, are based on technology from the Israeli company Elbit.

Airbus and Indra could also be affected by the arms embargo. Israeli company Rafael, together with Indra, supplies the so-called "Litening 5 targeting pods" for Eurofighter fighter jets. This contract was signed in 2023 and remains in effect. In June, the Ministry of Defense canceled the contract for the Spike LR2, the Army's large missile produced by a Rafael subsidiary.

Spain's direct contracts with Israeli companies exceed 235 million euros. The most significant relationship is with the aforementioned Rafael, with 207 million euros in contracts. This section also includes the purchase of bulletproof vests by the Ministry of the Interior from IMI Systems. In this case, the government considered it to be defensive material and did not cancel the purchase, although it did rescind another agreement with the same company for the supply of 15 million bullets.

Defense industry sources point out that the arms embargo on Israel could have negative consequences for other governments, such as the US.