Spain has officially canceled a €285 million missile contract with Israeli defense company Rafael Advanced Defense Systems, marking a significant shift in its defense procurement strategy. The decision comes amid increasing pressure on Western governments to reevaluate military ties with Israel, especially in light of the ongoing conflict in Gaza.
Why Spain Canceled the Rafael Missile Deal
The now-scrapped contract, signed in 2023, involved the acquisition of SPIKE LR2 anti-tank guided missiles, a system manufactured by Rafael and widely used by NATO allies. Spain had planned to equip its military with these next-generation systems as part of its broader modernization program.
However, Spain’s Defense Ministry recently confirmed the deal’s termination, citing “strategic reconsiderations” and “alignment with broader European defense policies.” While the ministry didn’t explicitly reference the conflict in Gaza, the timing is impossible to ignore.
Growing domestic and international criticism over arms deals with Israel, particularly during heightened military activity in Gaza, appears to have influenced Madrid’s decision. Human rights organizations and several Spanish lawmakers have increasingly called for a full military embargo on Israel, pressuring the government to act.
Implications for Spain’s Defense Strategy
Canceling a contract of this magnitude isn’t business as usual. Spain will now need to find an alternative missile system that meets NATO standards and supports its ongoing military modernization goals. While this opens the door to European manufacturers such as MBDA, it also creates a temporary capability gap.
The cancellation also sends a broader message: Spain is willing to reconsider longstanding procurement relationships based on shifting political and humanitarian priorities. This move may encourage other EU states to reevaluate similar defense contracts, especially under the growing scrutiny of civil society and international watchdogs.
Rafael’s Response
Rafael has not yet issued an official statement on the canceled contract. The Israeli defense sector has been under mounting pressure as several countries reconsider ties amid the escalating Gaza conflict. Losing a contract of this scale is a blow, not just economically, but reputationally.
What Happens Next?
For Spain, the focus will now shift to securing an alternative supplier without significantly delaying its defense upgrade plans. For Rafael, it’s a reminder of how quickly geopolitical tides can turn.
The canceled missile contract may not be the last. As governments face growing calls to align their foreign policy with humanitarian concerns, defense deals once seen as routine are now being reevaluated through a different lens.
