Spain’s recent declaration of a total arms embargo against Israel, effective at the end of September, has created significant challenges for its defence sector. While the move aligns with Madrid’s condemnation of the war in Gaza, the suspension of imports—particularly ammunition, rocket launchers, anti-tank missiles, and communication systems—has exposed vulnerabilities in Spain’s military supply chain. The financial and operational costs of cancelling these contracts, estimated at €1.2 billion, are proving to be a major hurdle.
The most immediate impact is felt in the Spanish armed forces, which rely on Israeli equipment for critical operations. The termination of key contracts, such as the €700 million Silam rocket launcher deal and the €287 million Spike anti-tank missile agreement, has left gaps in military readiness. Félix Arteaga, a defence and security researcher at the Royal Elcano Institute in Madrid, warns that the real damage lies in the disruption to Spanish industry’s contracts with Israel. “The main damage is not to exports to Israel, but to the contracts that Spanish industry has signed with Israel,” he says. The Spanish army and security forces now face delays in receiving essential equipment, while the police force may not obtain the ammunition they were expecting. Training programmes for pilots could also be delayed, further straining operational capabilities.
Replacing Israeli suppliers presents another challenge. The global defence industry is currently saturated with contracts, meaning new procurement deals could lead to delays, additional costs, and potential compromises in technology quality. “The market is currently saturated with contracts,” Arteaga explains. “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 view. Christophe Wasinski, a lecturer and researcher at the Université Libre de Bruxelles (ULB), argues 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.
Spain’s decision follows Slovenia’s lead in imposing a total ban on arms exports to Israel, a rare move within the European Union. While other EU capitals, including Rome, Brussels, and Amsterdam, have only limited exports to Israel, the Spanish embargo could set a precedent. Europe remains a key market for Israel’s military industry, with estimates suggesting that around half of Israel’s $14 billion (€11.9 billion) in arms exports in 2024 went to European countries. Romania, Germany, Denmark, and Estonia are among the major importers of Israeli defence technology, purchasing everything from anti-aircraft missiles to drones and electronic systems.
The broader implications of Spain’s embargo remain uncertain. Israel maintains a strong presence in Europe through subsidiaries and joint ventures, complicating any potential boycotts. For now, the focus is on mitigating the immediate fallout in Spain, where the defence sector must navigate the consequences of severing ties with one of its most advanced suppliers. As the situation evolves, other EU members may reassess their own arms trade policies, but for now, Spain’s decision stands as a bold, if not entirely seamless, step in European defence policy.