Merz Deepens Defense Alliance with Israel
Germany is reportedly planning a multi-billion euro deal for advanced rocket launchers with Israeli partners, according to Bloomberg. Simultaneously, Chancellor Merz, alongside Trump, criticized Spain's NATO spending – a sign of Germany's new security policy direction.
A New Arms Deal as a Sign of the Times
The Merz government is rewriting Germany's security policy – and Israel is playing a central role. As Bloomberg reported on March 4, 2026, the Federal Ministry of Defense is negotiating the procurement of up to 500 modern MARS-3 rocket launchers with a total value of around six billion euros – a deal that would elevate the German-Israeli arms partnership to a new level. The Israeli defense company Elbit Systems, the German-French manufacturer KNDS, and the German Diehl Group are involved in the negotiations. 250 vehicles are planned as a firm order for the Bundeswehr, with another 250 as an option for other European NATO partners.
Arrow 3 as the Foundation of Deeper Cooperation
The planned rocket launcher deal builds on an already existing, historically unique defense cooperation. The Israeli Arrow 3 missile defense system – the most expensive single deal in the history of Israeli arms exports – achieved operational readiness with the Bundeswehr in December 2025. The total volume of the Arrow 3 contract, after an expansion approved by the Bundestag, amounts to approximately 6.5 billion dollars, up from around 3.1 billion US dollars, as the Times of Israel reported. Germany has thus become Israel's most important defense partner in Europe by far.
Merz and Trump: Common Front Against Spain
Parallel to the deepening of the Israel partnership, Chancellor Friedrich Merz demonstrated his new foreign policy style during his visit to the White House on March 3rd and 4th. Together with US President Donald Trump, he publicly rebuked Spain for failing to meet NATO spending targets. "We are trying to convince Spain to catch up," Merz said, according to t-online. Trump had previously threatened to freeze all trade relations with Madrid after Spain refused the US the use of joint military bases for operations against Iran.
Spain's Foreign Minister then accused Merz of a lack of solidarity. The Chancellor partially backtracked: He had made it clear to Trump that an isolated trade agreement with Germany to the exclusion of Spain was not possible – the EU negotiates as a bloc, CNBC reported.
Critics View the Change of Course with Skepticism
The realignment of German Middle East policy remains controversial. In August 2025, Merz initially imposed a partial halt to arms deliveries to Israel – and lifted it again after his visit to Israel in December 2025. Amnesty International sharply criticized both the trip and the end of the export restrictions, referring to the ongoing humanitarian catastrophe in Gaza and violations of international law.
A New Security Policy Era
Under Merz, Germany is making a significant shift: more military engagement, closer ties to Washington and Tel Aviv, a more assertive approach to allies who are considered free riders. Whether this course will bear fruit in the long term – or provoke new rifts in European unity – will become clear at the latest at the next NATO summit. For Germany, Austria and Switzerland, one thing is clear: Berlin is once again taking geopolitical initiative, with all the opportunities and risks that this entails.
