Germany plans to buy the Israeli Arrow-3 missile defense system for a total of around 4 billion Euros ($4.30 billion), and will ask the Bundstag next week to approve up to 560 million Euros as advanced payment.

The Arrow-3 designed to intercept ballistic missiles outside the Earth’s atmosphere.

The system is the top layer of Israel’s missile defense systems that range from Iron Dome, which intercepts short-range missiles, to long-range Arrow-3 missiles, which destroy any unconventional warheads at a safe altitude.

German finance ministry procurement documents prepared for submission to parliament said Berlin aims to conclude a deal with the Israeli government to purchase the Arrow-3 system at the end of the year.

According to the deal details, Germany would lose the advance payment or part of it if the deal failed because the money would be used to compensate Israel for the cost incurred until then.

The German Air Force is supposed to receive the Arrow-3 system by the fourth quarter of 2025.

The system will cost more than planned by about one billion Euros.

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