European security with the "Made in Israel" label

Despite the fact that open messages of disagreement with official Israeli policy are increasingly coming from Europe, in light of the wars in Gaza and Lebanon, the cooperation of European states with the Israeli defense sector shows no signs of slowing down.

As Europe rapidly rearms, it has relied largely on the United States for weapons, tanks and aircraft. But when it comes to many of the less visible systems that are at the heart of modern security - sensors, interceptors and surveillance technologies - governments are increasingly turning to Israel, writes Politiko, citing as the latest example Greece, which signed an agreement with Israel in late August that will become one of the largest defense export deals in the history of both countries.

The three-billion-euro deal, dubbed the "Achilles Shield," will provide Greece with a package of Israeli technologies to protect against a wide range of threats, including missiles, aircraft and drones, according to the Brussels portal.

The dependence of European states on the Israeli defense industry is growing even as Europe's political relations with Israel are becoming increasingly strained.

"If we look at our relations with the European Union now, yes, there are challenges," Avi Nir-Feldklein, Israel's ambassador to the EU, told Politico. "But when you look at what we are doing bilaterally with EU member states, constructive and practical cooperation is intense and progressing."

The strength of Israel's defense sector lies in the close connection between the military and industry. Engineers and experts gain experience in elite military and cyber units, and then often move to defense companies or launch their own startups, which quickly transfers knowledge from the field to the development of new technologies. At the same time, Israel's largest defense companies have strong ties to state and military structures.

"Israel is a great example of how well-connected and integrated defense and private sector companies are," said Kaupo Rosin, head of Estonia's foreign intelligence service. "That's what makes them very capable."

The full picture of Israel's role in the European defense sector is difficult to establish, Politiko reports, noting that many contracts are not publicly available for national security reasons, while some Israeli companies operate through European subsidiaries. However, dozens of entries in the European public procurement database analyzed by the Brussels-based portal show that Israeli companies are becoming increasingly important suppliers of military communication, surveillance and electronic warfare systems.

Many publicly available contracts - including a Greek deal worth three billion euros - were awarded directly to Israeli companies, without opening the procedure for competitive bidding, a model favored by EU rules, according to public procurement documents.

Other European countries have also awarded Israeli defense companies contracts without a public tender. The Dutch Ministry of Defense awarded Elbit Systems a €25 million contract for battlefield management systems in 2025, citing the need for additional services from an existing supplier.

Spain awarded a €1,17 million contract to Rafael Advanced Defense Systems a year earlier without an open tender, claiming it was the only supplier that could provide the required equipment.

A similar arrangement was made by Denmark, which awarded a €6,5 million contract for an electronic signal processing and analysis device to Elbit’s German subsidiary in September 2025. Such direct contracts can further deepen countries’ dependence on individual manufacturers, especially when only the original supplier can maintain or upgrade specialized systems.

"Despite the political situation and the animosity between Israel and the European Union, when it comes to the security dimension, it is striking that cooperation has always been very good," Sharon Pardo, a professor of international relations at Israel's Ben-Gurion University, told Politiko.

Critics warn that Europe could be creating new dependencies at the very moment it claims to be striving for greater autonomy, while conflicts in the Middle East are further straining relations with Israel.

"If the goal is to strengthen European autonomy and sovereignty, then you cannot replace one type of dependency with another," said Li Andersson, a Finnish left-wing member of the European Parliament.

Anderson also pointed out that some Israeli security companies advertise their products as being tested in real operational conditions - in some cases on Palestinians living under Israeli occupation.

"It should be clear that we must not participate in arms trade or defense cooperation with an actor that has been repeatedly determined by multiple institutions to violate and disregard the most basic rules and principles of international law," she said.

Israeli Foreign Minister Gideon Saar responded sharply to European Commission President Ursula von der Leyen in September 2025 after she proposed sanctions and a partial suspension of trade between the EU and Israel over Israel's actions in Gaza. Saar said such an assessment was based on "false accusations and legal shortcomings" and insisted that Israel abides by international law, arguing that the proposed measures would only strengthen Hamas.

Hanna Neumann, a German Green MEP in the European Parliament, warned that European countries risk weakening their own position geopolitically.

The more European governments rely on Israel, the harder it will be for them to impose a political price for its foreign policy moves, she said.

"I would prefer that German resources and political energy be directed towards strengthening European autonomy," she added.

These criticisms, however, have not significantly slowed down cooperation in the field of defense and cybersecurity so far. Germany and Israel signed a memorandum in January on the development of a "cyber dome" based on Israeli technology, while Israel, Greece and Cyprus opened the Center for Maritime Cybersecurity in Nicosia a month later. Politico cites Spain as a particularly striking example.

Despite Pedro Sánchez's government canceling defense contracts with Israel worth a billion euros as part of what it called a complete arms embargo over the war in Gaza, Madrid's regional authorities have simultaneously requested help from Israel's cyber authority to protect critical infrastructure. Italy, on the other hand, has formally equated Israeli cyber technology with products from the EU and NATO in public procurement.

Niklas Herbst, a center-right German MEP who is a member of the European Parliament's Delegation for Relations with Israel, said that Israel offers what the European defense industry lacks, especially when it comes to cyber threats and air defense.

"It is in Europe's interest to have a stable and reliable relationship with Israel in this regard," Herbst told Politico. Addressing criticism that Europe is using technology that has been tested on Palestinians, he said governments are mostly investing in "very specialized software and sensor systems" intended for defensive use.

"The question is what do we want to buy," he said. "Do we want to buy peace of mind or defense products?"