Germany's defense exports to Israel quadruple in early 2026

Germany approved defense exports to Israel worth nearly €800 million in the first half of 2026, a fourfold increase from €260 million in all of 2025, according to Der Spiegel. The surge follows Chancellor Friedrich Merz's partial lifting of the arms embargo last November. Most of the approved amount, €735.8 million, was cleared in the second quarter, with 67% allocated to a naval project and 21% to joint German-Israeli projects. Analysts identify the naval project as the INS Drakon, Israel's sixth and largest submarine, delivered last month from ThyssenKrupp's Kiel shipyard. The Drakon, costing about €550 million, is Germany's largest submarine since World War II and deepens Israel's dependence on German shipbuilding. Three additional Dakar-class submarines are expected from 2031, with Germany financing 20% of the €3 billion contract.