Madrid reneges on contract with Elbit Systems for Israeli-licensed rocket launchers. Analysis of the reasons, impacts, and strategic implications.
Summary
The Spanish government has canceled a contract worth nearly $700 million for the purchase of rocket launchers designed by Elbit Systems, which were to be produced under local license. This decision is part of the suspension of military cooperation with Israel announced in May 2024 by Madrid in response to the Gaza conflict. The cancellation represents an industrial setback for Elbit and a forced reorientation for the Spanish Army, which had planned to modernize its aging rocket artillery. The decision reveals a political desire to exert diplomatic pressure, but it also raises questions: is Spain weakening its own military capacity in favor of a symbolic stance? This break calls into question the European strategy towards the Israeli defense industry, which is renowned for its advanced technologies. The possible alternatives—cooperation with European manufacturers or recourse to the United States—will impose delays and additional costs, leaving Spain with a dilemma between political consistency and operational effectiveness.
The canceled contract and its characteristics
The agreement signed in 2023 covered the supply of several dozen long-range rocket launchers, derived from the PULS (Precise and Universal Launching System) model designed by Elbit Systems. The aim was to replace or supplement Spain’s aging artillery, part of which relies on obsolete Teruel launchers. The contract was worth around €700 million, including not only the launchers but also 122-300 mm guided munitions, training, and logistical support. The unique feature of this program was local production: Spain was to assemble and maintain the systems through its own industry, with a partial transfer of know-how.
Madrid’s political decision
The break was not due to a technical problem, but to a political choice. In May 2024, Madrid announced the suspension of all military cooperation with Israel, citing humanitarian concerns related to the Gaza conflict. In this context, the execution of the contract with Elbit became incompatible with the government’s policy. The Ministry of Defense therefore notified the cancellation, despite the identified operational needs. This measure illustrates the willingness of Pedro Sánchez’s government to align its defense policy with diplomatic considerations, even if it means accepting industrial losses and capacity delays.
The impact on Elbit Systems
For Elbit Systems, this contract represented a significant breakthrough in the European market. In addition to its financial value, it provided a showcase for its PULS system, which had already been selected by several NATO member countries. The loss of the Spanish market deprives the manufacturer of a foothold in Southern Europe and may affect its commercial prospects with other customers sensitive to political pressure. Even though Elbit has a solid order book, the cancellation of a contract worth nearly €700 million remains a strategic setback, especially at a time when Israeli manufacturers are seeking to diversify their partnerships.
The consequences for Spain and its army
For the Spanish Army, the cancellation poses an immediate challenge: the lack of an equivalent alternative solution in the short term. The Teruel systems have been withdrawn and the country does not have modern capabilities comparable to the American HIMARS or the Israeli PULS. The search for an alternative will involve lengthy negotiations and higher costs. European options remain limited, as there is not yet a fully mature multiple rocket launcher system equivalent to the NATO standard. Spain could turn to the United States, but that would mean substituting one dependency for another. In terms of capability, this means a delay of several years in the modernization of Spanish rocket artillery.
A strategy of pressure on Israel
Madrid is presenting this decision as a diplomatic lever. The idea is to exert economic and political pressure on Israel by renouncing financial and technological transfers. However, the real impact of this measure remains relative: Elbit Systems remains a defense giant, supported by numerous contracts around the world, particularly in the United States and Eastern Europe. For Israel, the loss of a customer is not insignificant but remains absorbable. The real issue is more symbolic: Spain is taking a different stance from that of many of its European partners, who are sometimes criticized for continuing to purchase Israeli weapons despite the context of war.
A reversal of values?
This decision is also fueling a fundamental debate. Spain is sacrificing significant military capability to assert a political position. Some analysts see this as a reversal of priorities: the state is giving up on equipping its army in order to project a diplomatic image. In a context of international tensions, reducing its own rocket artillery capabilities could be perceived as a strategic weakening. Others, on the contrary, believe that this choice illustrates a consistency between humanitarian discourse and political action, giving weight to Spanish diplomacy. The question remains open: will this gesture really weigh on Israel or will it mainly weaken Spain’s defense?
Possible alternatives
Madrid will now have to explore other avenues. The United States is offering the HIMARS system, already widely adopted by Western armies, but the waiting list is long and the costs are high. Europe, for its part, is seeking to develop a common rocket launcher capability within the framework of Permanent Structured Cooperation (PESCO). Germany, for example, is investing in the Euro-PULS system, but its industrial schedule does not allow for rapid deliveries. For Spain, the equation is complex: it must find a NATO-compatible solution that is readily available and politically acceptable. This will likely require additional investment and a longer waiting period.
A choice that reveals a diplomatic stance
The cancellation of the contract illustrates a growing trend among some European states to use defense policy as a diplomatic tool. It also reveals the tensions between military, industrial, and political interests. Spain is sending a clear signal to its partners and to Israel, but is taking the risk of temporarily weakening its military capabilities. The debate over this decision reflects a broader question: to what extent can a state sacrifice its own operational effectiveness in order to assert its international position?
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