Spain’s decision to impose a total arms embargo on Israel, announced in September, has sent shockwaves through the defence sector, exposing the complexities of severing long-standing military contracts. While the move aligns with Madrid’s condemnation of the war in Gaza, the practical and financial repercussions are proving significant, raising questions about Europe’s reliance on Israeli defence technology and the broader geopolitical implications.
The embargo, which follows Slovenia’s lead, marks a rare and bold stance among European Union member states. Spain’s decision to halt arms imports from Israel—primarily ammunition, rocket launchers, anti-tank missiles, and communication systems—comes at a steep cost. Cancelling existing contracts, including the €700 million Silam rocket launcher deal and the €287 million Spike anti-tank missile agreement, is estimated to cost Spain €1.2 billion. Beyond the financial burden, the abrupt suspension of these contracts threatens to disrupt Spain’s military readiness and operational capabilities.
“The main damage is not to exports to Israel, but to the contracts that Spanish industry has signed with Israel,” warns Félix Arteaga, a defence and security researcher at the Royal Elcano Institute in Madrid. The termination of these agreements could leave the Spanish army and security forces without critical equipment, delaying training and depriving units of essential supplies. Replacing Israeli technology quickly will be a challenge, Arteaga argues, as the global defence industry is already stretched thin. “The market is currently saturated with contracts. And each new contract means a delay in delivery, additional costs, and not all technologies are equivalent. They are not of the same quality as Israeli technology.”
However, not all analysts share this pessimistic outlook. Christophe Wasinski, a lecturer and researcher at the Université Libre de Bruxelles (ULB), suggests that alternative suppliers exist. “There are a huge number of producers around the world, so I think there are ways of finding equipment in other countries,” he says. Yet, even if Spain can secure new suppliers, the transition will likely be costly and time-consuming, potentially weakening its defence posture in the short term.
The embargo also underscores Europe’s deep economic ties to Israel’s military-industrial complex. In 2024, Israel exported approximately $14 billion (€11.9 billion) in arms, with European countries accounting for roughly half of that total. Nations like Romania, Germany, Denmark, and Estonia have been key buyers of Israeli defence technology, including anti-aircraft and anti-tank missiles, drones, ammunition, and electronic systems. The question now is whether Spain’s and Slovenia’s decisions will inspire other EU members to follow suit.
For now, the embargo remains an outlier, with most European capitals opting for limited restrictions rather than outright bans. However, as the war in Gaza continues to fuel international outrage, pressure on other EU governments to reassess their defence trade with Israel may grow. The situation also highlights the delicate balance between ethical considerations and strategic necessity, as Europe grapples with the consequences of severing long-standing military partnerships.
As Spain navigates the fallout from its embargo, the defence industry will be watching closely. The move could accelerate efforts to diversify supply chains, reduce reliance on Israeli technology, and strengthen European defence cooperation. Yet, the path forward is fraught with challenges, and the long-term impact on Spain’s military capabilities remains uncertain. One thing is clear: the decision to impose an arms embargo is not just a political statement—it is a strategic gamble with far-reaching consequences.