Germany has signed a deal with Israel to acquire the Israeli-made Arrow 3 hypersonic missile system.

Israeli Defense Minister, Yoav Gallant and his German counterpart, Boris Pistorius, were present in Berlin’s Defense Ministry to oversee their ministries signing the letter of commitment to begin manufacturing Arrow parts.

Israel’s Defense Ministry Director General, Eyal Zamir signed a letter of commitment alongside the German Defense Ministry’s Head of procurement, Annette Lehnigk-Emden.

Gallant called the signing “a huge achievement for the defense industry” and “a historic day for our two nations that will help make German air defense fit for the future.”

Worth about $3.5bn (3.3 billion euros), the sale is the biggest ever deal for Israel’s military industry.

The long-range Arrow 3 system, designed to shoot down missiles above the Earth’s atmosphere, is powerful enough to offer protective cover for neighbouring European Union states.

The system was developed and produced by Israel and the United States and the sale had to be approved by Washington before it could be finalised.

The sale would represent the first time that the Arrow 3 system would be deployed beyond the borders of Israel and the United States.

The Arrow 3 system would make “German air defence ready for the future”, Pistorius said.

“In the face of daily attacks in Ukraine we realize how important air defense is in general, even if long-range missiles haven’t played a role to date,” Pistorius said.

Germany has led a push to bolster NATO’s air defences in Europe after Russia’s full-scale invasion of Ukraine last year, urging allies to buy deterrence systems together.

Eighteen countries have signed onto the German-led European Sky Shield Initiative since it was conceived in August 2023. The plan urges allies to buy deterrence systems together, with a focus on having them be interoperable with NATO air and missile defense systems.

“We would like to incorporate Arrow into the comprehensive defensive shield of NATO, so that our neighbors can benefit from it,” Pistorius said.

Berlin has said it expects the Arrow 3 system to be delivered in the final quarter of 2025.

Gallant and Pistorius signed a separate declaration reinforcing defence cooperation between the two countries.

Gallant Indicates Common Threats Between Europe And Israel

Moreover, Gallant noted the common thread running between European fears of Russia and Israel’s own rivalry with Iran.

“Today, more than ever, we share common threats. The Iranian fingerprint is everywhere,” Gallant said, referring both to Iranian proxies on Israel’s borders and Iranian drone sales to Russia.

“In the face of Iranian aggression, we must prioritize security readiness and capabilities, as well as bold actions by the international community,” Gallant said.

With many in the Israeli delegation being the children and grandchildren of Holocaust survivors, the signing looked back on the events of the Holocaust.

“It’s an emotional moment, to be here as the son and grandson of Holocaust survivors, on German soil, in Berlin, to sign a defensive arms contract,” Gallant said.

“It’s very important, personally and diplomatically. This moment of history leans on our past and dictates our shared future” he said, calling the sale “a moving event for every Jew.”

“Only 80 years since the end of the second world war yet Israel and Germany join hands today in building a safer future,” he added.

Gallant also noted that while there were other potential partners in Europe that could purchase the system, no serious negotiations are ongoing.

“Right now, we would only sell this system to Germany and the United States, because we are speaking about a strategic system. It would be delivered only to countries meeting certain standards, with respect to Israeli interests,” Gallant said.