The gap between Israel’s diplomatic relations with several European countries and the security ties they continue to maintain with Jerusalem is widening. Even countries that have escalated their rhetoric, imposed sanctions, and limited political ties with Israel are not rushing to abandon Israeli weapons systems, technology, and defense equipment.
“Most countries maintain a certain degree of duality,” political officials familiar with the issue say.
Spain is the most prominent example. In September 2025, Madrid adopted a law intended to establish a broad embargo on weapons and defense equipment involving Israel, including restrictions on exports to Israel and imports from Israel. Israeli officials say that in practice, the embargo is not airtight, in part because the law allows the government to approve exceptions when it determines that the national interest requires it.
“There is nothing airtight, and they are not following it either,” Israeli officials say.
According to political officials, defense deals with Spain continued even after the law took effect, including activities permitted under the exemption mechanism.
The Spanish law includes an exception allowing the government to approve deals that would otherwise be prohibited if fully implementing the restrictions would harm “general national interests.” In some cases, therefore, defense activity is not taking place in violation of the embargo, but under the exemption clause that Madrid itself included in the legislation.
The Spanish government has already used the exception to allow Airbus to continue using Israeli technology in strategic projects after determining that completely halting its use could harm production capabilities, jobs and defense projects for which there is no immediate alternative.
Discussions held in Spain also highlighted the country’s continued dependence on Israeli technology, licenses and technical support for several defense systems. Fully replacing these components and systems is not possible in the immediate term and would entail high costs and the development of local or European alternatives.
Madrid has canceled deals with Israel, and Jerusalem does not claim that the embargo exists only on paper. Spain has halted certain purchases and projects and is working to reduce its defense dependence on Israel. However, the exemptions included in the law allow the Spanish government to continue defense cooperation with Israel when it determines that national interests require it.
The Netherlands is also advancing measures against trade with settlements
The Netherlands, for example, is advancing measures against trade with settlements, while its Defense Ministry continues to purchase Israeli systems when no available alternative exists. The Dutch government has publicly stated that, in certain fields, Israeli companies provide essential systems or components for which there is currently no suitable, available Dutch or European replacement.
In Finland, as public and political debate surrounding Israel intensified, Helsinki quietly extended its defense cooperation agreement with Israel until 2034. The agreement, which covers research and development and defense procurement, was renewed in 2024, after the war in Gaza had already begun.
The renewal was initiated by Finland and extended the agreement for 10 years, compared with five years under previous arrangements. The Finnish Defense Ministry did not announce the decision at the time.
The relationship with Israeli defense industries plays a significant role in Finnish defense procurement. Israel is Finland’s second-largest foreign defense supplier and provides systems such as the David’s Sling and Gabriel missiles. Finland has explained that maintaining the relationship is necessary to carry out existing deals, maintenance, and long-term cooperation.
In Germany, expanded defense cooperation with Israel continues even as Berlin has voiced criticism of Israeli policy on issues including E1 and settlements. The Arrow 3 deal and its expansion have made Germany one of the main customers of Israel’s defense industry and were among the factors that helped drive Israeli defense exports to a new record.
In Greece, another major deal with Israel was recorded on Monday, during a period in which criticism of the Gaza war has also been heard in Athens. The two countries signed the “Achilles Shield” deal worth approximately 3 billion euros, the largest defense export deal in the history of Israel-Greece relations and one of the largest in Israel’s history.
In the Baltic states, Jerusalem has identified an “upward trend” in demand for Israeli systems due to growing concerns over Russia. According to Israeli political officials, the Baltic states view themselves as being “on the front line” and fear they could be next if the Russian threat expands.
The war in Ukraine and the Russian threat have changed defense priorities across Europe. European countries are rapidly increasing their defense budgets and seeking systems that have already demonstrated operational capabilities. In several areas, there is no available European replacement for Israeli technology.
Finland, for example, has made it clear that the war in Ukraine has demonstrated the critical importance of air defense capabilities.
Defense exports at a record high
In Jerusalem, officials are seeking to separate, as much as possible, political disputes with European governments from security ties with them. Israel is not rushing to halt defense deals in response to political criticism.
“We are pragmatic,” political officials say.
From Israel’s perspective, stopping deals could harm domestic defense industries, hand market share to competitors, led by France, and reduce the influence created through long-standing ties between Israeli industries and European defense establishments.
The Israeli interest is also reflected in the numbers. In 2025, Israeli defense exports reached a record $19.2 billion, a jump of nearly 30% in one year and more than double the figure from five years earlier.
The Defense Ministry views expanding defense exports as a tool for strengthening industries, financing security needs and advancing diplomatic objectives.
Even in Israel, there is no complete separation between political and security considerations. A deal may be halted if there is concern about technology leakage, the transfer of a system to a hostile actor, or other security risks.
Political officials do not rule out the possibility that political considerations could affect a deal under certain circumstances. The diplomatic tensions with several European governments have not, for now, halted security cooperation.
European countries are increasing defense budgets and confronting the Russian threat, and in areas where no available alternative exists, they are finding it difficult to give up Israeli systems.
Spain is perhaps the most prominent example: even after enshrining a broad embargo on Israel into law, it left room for exceptions when its security needs and national interests require it.