Israeli Defense Firms Eye Opportunities Amid Far-Right Gains in Germany

Germany and Israel are expressing concern over the significant electoral victory of the far-right Alternative for Germany (AfD) party in the state of Saxony-Anhalt, where it secured approximately 43.8% of the vote. Despite the broader political unease, an Israeli defense company, Elbit Systems, may stand to benefit from the AfD's agenda.

Ulrich Siegmund, who is expected to become the state's premier, supports establishing domestic arms production facilities. He has indicated a willingness to allow Elbit Systems to operate in the state, potentially supplying resources for the party's planned deportation operations. While the AfD opposes increased German defense spending, Siegmund clarified that the party does not object to producing military equipment for local needs, stating it would serve internal security and national defense.

Local media reports suggest Elbit is in discussions to establish a factory in Saxony-Anhalt that would produce components for other German firms, potentially creating up to 400 jobs. Elbit Germany confirmed it is exploring expansion opportunities but has not yet made a final decision on a location.

In a separate development, Elbit's potential expansion follows Rafael Advanced Defense Systems' strategic move to acquire a former Volkswagen plant in Osnabrück. This acquisition, in partnership with the German state of Lower Saxony and the investment firm Aurelius, aims to produce components for the Iron Dome defense system. This deal reportedly bypasses opposition from a Qatari investment fund that holds shares in Volkswagen.

Rafael's CEO, Yoav Turgeman, stated the partnership leverages proven technology to address current threats and future challenges. Aurelius, founded in Israel, focuses on advanced technologies and has notable figures on its advisory board, including former Israeli Air Force commander Amir Eshel and former NSA director Mike Rogers.