Germany signed a historic deal on Thursday to acquire the Israeli-made Arrow 3 hypersonic missile system. The system will become a crucial part of Europe’s defense against air attacks. The deal, worth approximately $3.5 billion (3.3 billion euros), is the largest ever for Israel’s military industry. German Defence Minister Boris Pistorius described the signing of the deal as a ‘historic day’ for both countries. The long-range Arrow 3 system, designed to shoot down missiles above the Earth’s atmosphere, provides protective cover for neighboring European Union states. Germany has been leading efforts to reinforce NATO’s air defenses in Europe after the Russian invasion of Ukraine last year. Pistorius emphasized the importance of anti-air defense given the daily Russian attacks on Ukraine. The Arrow 3 system has been used by Israel to safeguard against attacks from Iran and Syria since its deployment at an Israeli air force base in 2017. It is a mobile system that can be deployed based on the prevailing threats. The agreement had to be approved by Washington, as the system was developed and produced by Israel and the United States. The funds for the deal come from a landmark 100-billion-euro fund unveiled by Chancellor Olaf Scholz to strengthen Germany’s defenses in the wake of Russia’s invasion of Ukraine. More than a dozen European countries have already joined Germany’s common air defense project, the European Sky Shield Initiative. This project entails joint procurement for short-, medium-, and long-range systems, including the German-made Iris-T, the American Patriot system, and Arrow 3. However, some of Germany’s neighbors, such as France and Poland, have not yet signed up for the pact. Paris has argued for an air defense system using European equipment instead. The delivery of the Arrow 3 system is expected in the final quarter of 2025.