Overview

• Spain's government annulled a €6.6m ammunition contract with Israeli firm IMI Systems, citing public interest and arms embargo policy.
• The decision followed pressure from far-left coalition partner Sumar, which threatened to exit the government over the deal.
• State legal services warned the unilateral cancellation could require Spain to pay the full contract amount without receiving the bullets.
• The arms deal exposed internal tensions within Spain's minority coalition, already strained by disagreements over increased defense spending to meet NATO targets.
• Prime Minister Pedro Sánchez reaffirmed Spain's commitment to not buy or sell arms to Israel, aligning with its criticism of Israeli actions in Gaza.