Overview
- The German government confirmed it approved almost €800 million in arms export licences for Israel for January–May 2026, with nearly all approvals issued in April and May.
- More than 60 percent of the total value was assigned to one unnamed “major maritime project” that analysts and media identify as the INS Drakon, a German-built Dolphin II‑class submarine reportedly handed to the Israeli Navy in July 2026.
- Reports say the Drakon may carry a vertical launching system that could fire cruise or ballistic missiles while submerged and that the class can be configured to carry nuclear-capable weapons, raising concerns about a strengthened sea-based second‑strike capability.
- German media and official replies report Berlin financed roughly 30 percent of the Drakon’s cost, and submarine deals have long faced Israeli judicial probes over alleged bribery and domestic debate in Germany over export rules after a temporary licence suspension in August 2025 and a return to case-by-case reviews in November 2025.
- The submarine-focused approvals come as Germany’s wider arms exports surged to €13.87 billion in the first half of 2026, a scale that is boosting the defence industry while increasing political pressure for clearer rules, greater transparency and legal scrutiny of future transfers.