IMAGE: Pedro Sánchez and Yolanda Díaz facing the Israeli ammunition contract crisis
The Spanish government is currently facing significant scrutiny following Prime Minister Pedro Sánchez’s recent declaration that defense spending will increase to 2% of the gross domestic product this year. Compounding this issue, revelations emerged this week that Madrid has procured 15 million rounds of 9 mm ammunition from the Israeli defense contractor Imi Systems, a subsidiary of Elbit Systems, despite Sánchez’s prior statement asserting that there had been ‘no arms purchase operation’ with Israel since October 7, 2023.
This development has ignited a wave of criticism within Sánchez’s leftist coalition government, prompting Labor Minister Yolanda Díaz, leader of coalition partner Sumar, to call for an immediate rectification of the situation. Diaz has publicly expressed her opposition to the ongoing commercial agreements for military supplies with Israel, in light of the current genocide and ethnic cleansing actions being perpetrated by Israel in Gaza and the West Bank. On Thursday, government officials indicated that the contract would be terminated ‘unilaterally.’
The ammunition contract controversy comes as an embarrassment for the prime minister, who had previously assured legislators that Spain had not engaged in any arms transactions with Israel since 2023. El Progresso has the story…
IMAGE: Pedro Sánchez and Yolanda Díaz (Source: Alberto Ortega)
El Progreso reports on Spain’s cancellation of arms deal with Israel…
(Translated from Spanish to English)
The government cancels the purchase of ammunition from Israel due to the crisis with Sumar
The State Attorney’s Office and the affected ministries are already studying the response to possible legal reactions and claims.
The Spanish government has decided to unilaterally terminate the ammunition purchase contract with the Israeli company IMI Systems and will deny the company permission to import the war material into Spain “for reasons of public interest.”
This measure, announced Thursday, represents a significant shift in military-to-military relations with Israel and responds to internal pressure from coalition partners, especially Sumar, who have been demanding this rupture for weeks.
According to government sources, the decision comes “after exhausting all negotiating avenues” between the Presidency of the Government, the Second Vice Presidency headed by Yolanda Díaz, and the relevant ministries.
The contract, which had generated a significant crisis with Sumar’s partners in the coalition government, is now abruptly terminated, while “the State Attorney’s Office and the affected ministries are already studying the response to possible legal actions and claims” that the Israeli company could file.
The same sources emphasise that the coalition parties are “firmly committed to the Palestinian cause and to peace in the Middle East .”
Israel “strongly” condemns the termination of the contract
Israel “strongly condemns” the Spanish government’s decision to terminate a contract to purchase ammunition from the Israeli company IMI Systems and believes it “is sacrificing security considerations for political reasons,” a spokesperson for the Israeli Foreign Ministry told Efe on Thursday.
According to the Spanish Foreign Ministry, with its decision, the Spanish government “continues to stand on the wrong side of history” and is positioning itself “against the Jewish State, which is defending itself against terrorist attacks on seven fronts.”
The spokesperson emphasised that this is a unilateral breach of contract and also criticised the Spanish government’s announcement that it will refrain from future defense agreements with Israeli companies.
Keys to the breach of contract with IMI Systems
The unilateral termination of this contract represents an unprecedented move in recent Spanish foreign policy, with significant diplomatic and commercial implications. The Ministry of Defense had signed this agreement for the acquisition of military equipment, a deal valued at several million euros, which is now permanently suspended.
International law experts point out that such unilateral terminations can entail significant financial compensation. The appeal to the “public interest” as a legal justification seeks to shield the government’s decision from potential litigation, although IMI Systems could claim damages for breach of contract under the signed clauses.
Diplomatic tensions between Spain and Israel, which were already at a delicate point following statements by several Spanish ministers regarding the conflict in Gaza, could intensify following this latest incident.
The Israeli ambassador in Madrid had repeatedly expressed his dissatisfaction with Spain’s position on the Israeli-Palestinian conflict, and this trade decision could have consequences for bilateral relations.
The internal pressures that led to the decision
The termination of the contract comes after weeks of intense pressure from Sumar and other parliamentary allies of the government. Yolanda Díaz, second vice president and leader of Sumar, had publicly expressed her opposition to maintaining commercial agreements for military equipment with Israel while the offensive in Gaza continues.
Defense Minister Margarita Robles herself had until now maintained a more pragmatic stance, defending compliance with the international commitments made. However, pressure from the left wing of the Executive branch appears to have finally tipped the balance toward breaking the contract.
What is Imi Systems, and its relevance to the military industry?
Imi Systems ( Israel Military Industries ) is a leading company in the Israeli arms industry. Founded in 1933, it was nationalised by the Israeli government in 2018 and is currently part of the Elbit Systems group. The company specialises in the manufacture of ammunition, weapons systems, and advanced military technology.
With over 90 years of history, Imi Systems has established itself as one of the leading suppliers of military equipment to the Israel Defense Forces (IDF), but also exports its products to numerous NATO and other allied nations. Among its best-known developments are the Uzi submachine gun, various armored vehicle protection systems, and specialised ammunition.
The now-terminated contract was part of the regular military trade agreements between Spain and Israel, a sector that moves hundreds of millions of euros annually and which had so far withstood diplomatic tensions between the two countries.
NOTE: The ongoing genocide in Gaza is leading to Israel’s economic and political isolation, as nations globally reconsider their affiliations with the increasingly disreputable Hebrew state
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Author: Global Affairs
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