The Bundestag’s Budget Committee on Wednesday approved a first tranche of funding for Germany to acquire an Israeli anti-missile protection system as part of its rearmament, decided after the invasion of Ukraine, a parliamentary source said.
The Arrow 3 anti-missile system, costing a total of €four billion, is equipped with radar, launchers and guided missiles capable of destroying targets beyond the atmosphere.
The package released on Wednesday includes €560 million with a view to a future pre-contractual agreement with Israel, French news agency AFP learned on Tuesday.
The German government “intends to set up the national territorial missile defence capability as quickly as possible with the planned acquisition of the Arrow weapon system,” the Finance Ministry pointed out in a document intended for the Budget Committee, which French news agency AFP has seen.
The Israeli system should “contribute to the protection of Germany, its population and critical infrastructure against ballistic missiles,” according to the document.
The system could be delivered by the end of 2025, according to the letter, which stresses that “in total, the budgetary requirements for the acquisition of the Arrow weapon system are estimated at €3.99 billion based on current knowledge.”
After several decades of underinvestment in its defence, Germany, through its Chancellor Olaf Scholz, declared a “change of era” following Russia’s invasion of Ukraine on 24 February 2022. The Social Democrat leader has set up a €100 billion fund for the German army.
The Arrow system is developed and manufactured by Israel Aerospace Industries (IAI) in collaboration with US aircraft manufacturer Boeing.
Arrow 3 has been in use at Israeli air bases since 2017. The system is designed to defend against long-range missiles. In this way, Israel is able to protect itself against attacks from Iran or Syria.
According to Israeli manufacturer IAI, the system is capable of intercepting ballistic missiles above the atmosphere, fired from a distance of up to 2,400 kilometres. It is considered sufficiently effective to also provide protection for neighbouring EU countries if it were to be installed in Germany.
The Arrow missiles have a much greater range than the Patriot air defence system and the IRIS-T system currently used in Germany.
The Budget Committee also approved the purchase of six additional German-made Iris T SLM air defence systems worth around €950 million. Arrow 3 would therefore complement the existing German missile defence system.
The system could make a decisive contribution to the “European Sky Shield” project. This initiative by Olaf Scholz, which aims to create a European air and missile defence system through the joint procurement of equipment and missiles, already unites several countries on the continent but not France or Poland.

