Germany plans €6 billion rocket launcher deal with Israel to boost NATO defenses

Berlin moves to deepen military cooperation with Israel through EuroPULS procurement and missile production transfer.

Members of the German Bundeswehr inspect a Patriot missile launch system during a press day at a Luftwaffe training center.
Members of the German Bundeswehr inspect a Patriot missile launch system during a press day at the Luftwaffe training center in Warbelow. Photo by Sean Gallup/Getty Images

Germany plans €6 billion rocket launcher deal with Israel as Berlin moves to significantly expand military cooperation with one of its closest defense partners, signaling a major shift in Europe’s approach to collective security and long-term deterrence within NATO. The proposal, which would see the procurement of up to 500 multiple-rocket launch systems and thousands of missiles, comes at a moment of heightened geopolitical tension and renewed focus on European rearmament.

According to people familiar with the planning, Germany’s Defense Ministry is in negotiations with Elbit Systems, KNDS, and Diehl Group for a large-scale acquisition of the MARS 3 rocket launcher system, also known as EuroPULS. The package would include a fixed order for 250 launchers for the German armed forces, with an option to purchase an additional 250 units that could be made available to other European governments under identical terms.

If approved, the deal would rank among Germany’s most ambitious land-based weapons procurements in decades and underline Berlin’s growing willingness to invest heavily in high-end military capabilities after years of underfunding.

The agreement is expected to be submitted to German lawmakers later this year. People briefed on the talks say the structure of the deal is designed not only to equip Germany’s own military, but also to serve as a template for broader European adoption, allowing allied NATO states to join the program without renegotiating core terms.

At the heart of the plan is a full transfer of technology and production from Israel to Germany. While the rocket launcher concept originates from Israel, the system would ultimately be assembled on German soil, with significant involvement from European industry.

Under the proposed structure, Elbit Systems would oversee final assembly in Germany, while launcher technology would be supplied by KNDS and key components by Diehl. The arrangement reflects Berlin’s insistence on maintaining domestic industrial capacity and technological sovereignty, even as it deepens cooperation with non-European partners.

Spokespeople for Germany’s Defense Ministry and Elbit declined to comment on the negotiations. A KNDS spokesperson referred questions to the ministry, while representatives of Diehl and Israel’s Defense Ministry did not immediately respond.

Strengthening defense ties with Israel is politically sensitive in Germany, particularly as conflict in the Middle East escalates following recent US and Israeli military actions against Iran. Chancellor Friedrich Merz leads a governing coalition that includes parties with differing views on arms exports and relations with Israel.

For Merz’s government, the deal balances strategic necessity against domestic political debate. Supporters argue that Israel’s battlefield-tested systems offer reliable solutions at a time when European militaries face urgent capability gaps. Critics, however, warn that deepening defense cooperation with Israel during an active regional conflict could expose Berlin to diplomatic and ethical scrutiny.

Nevertheless, German officials privately emphasize that the proposed procurement is driven by NATO requirements rather than regional politics, pointing to Russia’s war in Ukraine as the primary catalyst for Europe’s military reawakening.

The rocket launcher talks follow an earlier landmark agreement between Germany and Israel. In 2024, Israel completed the handover of the Arrow 3 anti-ballistic missile defense system to Germany, marking the first time another country gained independent access to the high-altitude interception technology.

The Arrow 3 deal, sealed in 2023 under former Chancellor Olaf Scholz, was Israel’s largest-ever defense export and a milestone for Germany’s air defense capabilities. Once fully operational, the system will allow the German Air Force to detect and intercept ballistic missiles outside Earth’s atmosphere, a capability Germany previously lacked.

Defense officials see the proposed EuroPULS procurement as a natural extension of that partnership, shifting focus from strategic missile defense to long-range precision firepower on land.

Germany’s interest in the MARS 3 or EuroPULS system reflects a broader reassessment of its artillery capabilities. The Bundeswehr has faced longstanding criticism for insufficient stocks of long-range rockets and limited readiness, shortcomings that became starkly visible after Russia’s invasion of Ukraine highlighted the importance of massed firepower and deep-strike capabilities.

EuroPULS is designed to fire a wide range of guided and unguided rockets, offering flexibility across different mission profiles. Unlike older systems, it can integrate munitions from multiple suppliers, reducing dependence on a single manufacturer and improving resilience in wartime supply chains.

German defense planners see this modular approach as especially attractive for NATO operations, where interoperability and logistical flexibility are increasingly valued.

Beyond the launchers themselves, the Defense Ministry intends to conclude additional agreements covering ammunition procurement on an unprecedented scale. In an initial phase, Germany plans to purchase rockets with a range of up to 150 kilometers, with spending expected to reach several billion euros.

According to people familiar with the timeline, the Bundeswehr aims to receive several thousand rockets by 2030. A second phase would involve the annual procurement of several thousand additional missiles, ensuring sustained stockpiles rather than one-off deliveries.

This approach reflects lessons drawn from Ukraine, where high-intensity combat has consumed ammunition far faster than European planners once anticipated.

European suppliers to play key role

While Israel provides the underlying system architecture, European manufacturers are expected to dominate missile production. Likely suppliers include Diehl and European missile group MBDA, though Sweden’s Saab AB and Norway’s Kongsberg Gruppen are also seen as potential contributors.

By distributing production across multiple European firms, Berlin hopes to strengthen regional defense industries and reduce reliance on non-European supply chains over the long term.

Industry executives note that such large, predictable orders could help stabilize production lines and justify investments in expanded manufacturing capacity, something European defense firms have been calling for since the start of the Ukraine war.

Germany plans €6 billion rocket launcher deal with Israel also carries broader implications for NATO. If other European governments exercise the option to purchase additional launchers, EuroPULS could become a common system across multiple allied armies, simplifying joint operations and training.

The move aligns with NATO’s push for members to meet higher defense spending targets and invest in capabilities that strengthen collective deterrence. For Germany, which has pledged to modernize its military after years of neglect, the deal would mark a concrete step toward fulfilling those commitments.

At the same time, it underscores Berlin’s evolving role as a military leader in Europe, moving beyond its traditional reluctance to embrace large-scale armament programs.

As negotiations continue, German officials face the challenge of aligning strategic urgency with industrial policy and political realities. Full technology transfer and domestic assembly address concerns about sovereignty and employment, while the scale of the procurement responds to NATO’s growing demands.

Yet the timing of the deal, amid ongoing conflict in the Middle East, ensures it will remain under close scrutiny both at home and abroad.

For now, Germany plans €6 billion rocket launcher deal with Israel stands as a symbol of Europe’s changing security landscape, where long-held assumptions about peace, supply chains, and military preparedness are being rapidly reassessed.

If approved, the agreement would not only reshape Germany’s artillery capabilities but also redefine the contours of European-Israeli defense cooperation for years to come.

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