The Spanish government has officially canceled a €700 million ($825 million) defense contract with Israel’s Elbit Systems. The deal, which involved advanced rocket launcher systems, was terminated amid growing political and diplomatic tensions over Israel’s military actions in Gaza. The move reflects Madrid’s decision to align its defense procurement strategy with international humanitarian concerns.
The contract centered on the acquisition of 12 SILAM (Sistema Lanzador de Alta Movilidad) units. These systems, derived from Elbit’s PULS (Precise and Universal Launching System) platform, were intended to significantly upgrade the Spanish Army’s long-range artillery. Capable of firing precision-guided rockets with ranges up to 300 kilometers, the PULS system has already been adopted by several NATO member states.
Spain’s cancellation, however, signals that ethical and political considerations are now weighing more heavily in procurement decisions. Officials stressed that the deal was inconsistent with the government’s pledge to avoid military cooperation with Israeli companies accused of violating international humanitarian law.
Prime Minister Pedro Sánchez’s coalition government came under strong domestic pressure to cancel the agreement. Left-wing partners, including the Sumar party, warned they would withdraw support if the contract moved forward. Public outrage over the humanitarian situation in Gaza further increased the pressure.
The SILAM contract is not the first to be terminated. Spain had already canceled a €287 million deal for Spike LR2 anti-tank missiles as well as a smaller ammunition purchase from Israeli suppliers. Supporters of these decisions argue that they demonstrate Spain’s commitment to human rights and international law. Critics, however, caution that canceling advanced weapons contracts may leave gaps in Spain’s operational readiness.
The cancellation has drawn sharp criticism from Israeli officials, who accused Spain of fostering antisemitism and undermining bilateral ties. By contrast, Palestinian advocates welcomed the move as a rare example of a European state holding Israel accountable through economic and diplomatic measures.
Spain now faces the possibility of financial penalties, since breach-of-contract clauses could trigger compensation payments to the affected companies. Despite this, the government has emphasized that its primary objective is to apply diplomatic and economic pressure on Israel’s military campaign in Gaza, even if it carries a financial cost.
Spain’s decision to cancel the Elbit Systems defense deal highlights a growing trend in European defense policy where humanitarian concerns are shaping procurement strategies. While Madrid risks financial and diplomatic fallout, the government insists that prioritizing human rights and accountability outweighs the costs. The move demonstrates how the war in Gaza is influencing not only Middle Eastern politics but also the defense relationships of European nations.