The German government, led by Social Democratic Chancellor Olaf Scholz, has revoked the veto on the sales of Eurofighter fighter-bombers to Saudi Arabia, justifying the initiative with the “constructive approach” adopted by Riyadh in the war between Israel and Hamas.
The about-face
The embargo dates back to the end of 2018 when, after the assassination of journalist Jamal Khashoggi for which US intelligence holds Saudi Crown Prince Mohammed bin Salman responsible, Germany froze arms sales to the Arab kingdom.
Since then, the German veto has blocked an order for 48 Eurofighter Typhoons, previously signed in London by Mohammed bin Salman. A deal that now seems possible.
“It is an open secret that the Saudi air force also intervened to shoot down the Houthi missiles against Israel and it is in light of all these developments that the government's position will be defined,” the Saudi spokesperson said today at a press conference in Berlin. German executive Steffen Hebestreit. “Saudi Arabia has adopted a very constructive attitude towards Israel.”
Yesterday, during a visit to the Jewish state, Foreign Minister Annalena Baerbock said that Riyadh and Israel “have not given up on their normalization policy” after the October 7 attacks by Hamas. “Saudi Arabia contributes decisively to Israel's security, even in these days, and helps stem the risk of a regional conflagration.”
Internal repercussions
The ban on selling weapons to Riyadh was decided five years ago by the then Chancellor Angela Merkel and was included in the agreement for the “traffic light” coalition currently in power in Berlin and which includes Scholz's SPD, Baerbock and the FDP Liberals of Finance Minister Christian Lindner. Ecologists were the staunchest supporters of this measure, also due to the role played by Saudi Arabia in Yemen.
But, the German Foreign Minister said yesterday, “the world, especially here in the Middle East, has become a completely different place since 7 October”. However, Baerbock's about-face was not liked in her party whose co-president, Ricarda Lang, called it “a mistake”, “given the human rights situation in Saudi Arabia”.
Even the Social Democrats risk splitting on the issue, given the attention paid by the more radical wing to respect for human rights in the countries receiving these armaments.
Golden business
Instead, Airbus, the majority shareholder of the consortium and whose president Guillaume Faury had recently lashed out again against the embargo, is rejoicing.
Even the British BAE Systems, responsible for assembling the Typhoon components in the United Kingdom, is breathing a sigh of relief.
Last but not least, our Leonardo is also delighted, which together with the British company holds a minority share in Eurofighter Jagdflugzeug GmbH. After the news broke, Airbus shares rose by 2.78% in Paris and Leonardo's shares gained 1.05% in Milan.
Poised
But the change of direction in Berlin may have come too late. Meanwhile, the German government reiterated that no decision has yet been made on the definitive sale of the fighters to Riyadh. Furthermore, given Germany's unavailability, over the last few years the kingdom has opened negotiations with the French Dassault for a new order of Rafale fighters.
However, not even Paris is entirely satisfied: despite the revocation, the veto on the sale of the Eurofighter Typhoons constitutes a dangerous precedent for the arms industry and for European development programs.
In fact, the next generation of fighters, called Scaf, will be the result of a joint initiative between France, Germany and Spain and will have to replace both the Rafale and the Eurofigher by 2040. In this regard, investors from beyond the Alps are asking for guarantees from Berlin, which in the meantime also finds itself deciding on another deal regarding European fighters.
In November, Turkey expressed its intention to purchase 40 Eurofighters, a proposal to which the United Kingdom and Spain have already expressed their support but on which the German government has not yet given a definitive opinion.
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