Expanding cooperation
Merz Lands in Israel - And Signs One of the Most Explosive Defense Deals in Decades
Agreements reached during Chancellor Merz's visit to Israel include broadening industrial cooperation, co-manufacture of future projects
Germany and Israel announced an expansion of their defense partnership on Monday, unveiling a new agreement that will include joint production of interceptor missiles for the Arrow 3 anti-ballistic missile system. The deal was finalized during German Chancellor Friedrich Merz’s first official visit to Israel since taking office in May 2025, a trip timed to coincide with events marking 60 years of diplomatic relations between the two countries.
Merz met with President Isaac Herzog and Prime Minister Benjamin Netanyahu in Jerusalem, where both sides emphasized the strategic importance of deepening defense and industrial cooperation. According to the announcement, the two governments agreed that production of Arrow 3 interceptors will now be carried out jointly by Israel and Germany. Germany had already committed to acquiring and deploying Arrow 3 batteries, but the new agreement significantly expands that commitment by adding co-manufacturing of the system’s core components.
In addition to the Arrow 3 arrangement, Germany is also expected to purchase further Israeli defense systems, broadening an already growing security partnership. Israeli officials described the expanded cooperation as “critical” for national defense, especially given the continuing regional instability and the ongoing conflict affecting Israel’s security posture.
The meeting also highlighted a familiar political divide between the two governments. Merz reiterated Germany’s longstanding support for a two-state solution and its opposition to unilateral annexation. Netanyahu, responding directly to those remarks, dismissed the current viability of a two-state framework and said Israel would maintain security control “from the Jordan River to the sea.”
Despite those disagreements, both sides framed the visit as a reaffirmation of the historical relationship between Israel and Germany and as an opportunity to solidify long-term defense cooperation. Officials indicated that the new agreements could lay the groundwork for additional joint projects in the future, including in fields beyond missile defense.