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Germany’s Gaza Arms Freeze Prompts Industry to Consider U.S. Production Shift

Chancellor Merz cited Gaza humanitarian needs in halting shipments, prompting diplomatic protests from Israeli officials.

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Israel National News

Overview

  • Chancellor Friedrich Merz announced on August 8 an open-ended suspension of military exports that could be used in the Gaza Strip over concerns about civilian harm and strategic setbacks.
  • Bavarian CSU leaders say they were excluded from the decision and warn the embargo breaks with decades of Germany’s policy toward its key ally.
  • Israel’s ambassador to Germany and Prime Minister Benjamin Netanyahu condemned the suspension as effectively rewarding Hamas and undermining Israel’s defense.
  • Renk Group AG, a major tank-transmission supplier, is planning to relocate production to its U.S. facilities if German plants cannot fulfill Israeli contracts under the embargo.
  • Civil society monitors reported that Germany simultaneously approved a submarine export licence to Israel, raising questions about the coherence and scope of the suspension.