Germany Oks $4.3B Purchase of Arrow 3 Anti-Missile Systems

German lawmakers on Wednesday approved an advance payment for the acquisition of the Israel-produced Arrow 3 air defense system for nearly $4.3 billion.

The budget committee in the lower house of German parliament gave the green light for an initial payment of €560 million, a committee source told AFP. The initial payment is intended to set up manufacturing and production in Israel.

The long-range Arrow 3 system, designed by Israel Aerospace Industries (IAI) to shoot down missiles above the Earth’s atmosphere, is claimed to be powerful enough to offer protective cover for neighboring European Union states.

The money will come from a landmark €100 billion fund unveiled by Chancellor Olaf Scholz to bolster the country’s defenses in the wake of Russia’s invasion of Ukraine.

Berlin aims to strike a deal with Israel on Arrow-3 purchase by the end of the year, according to procurement documents by the finance ministry that were prepared for parliament. It expects the Arrow 3 system to be delivered in the final quarter of 2025.