Germany's Merz: spoke to Israel's Netanyahu by phone on Saturday, says German official

Germany's Merz: spoke to Israel's Netanyahu by phone on Saturday, says German official

Germany’s Merz Holds Phone Call with Netanyahu Amid Ongoing Geopolitical and Economic Tensions

German Chancellor Friedrich Merz spoke with Israeli Prime Minister Benjamin Netanyahu by phone on Saturday, according to a German government spokesperson. The call occurred amid heightened geopolitical tensions, including Israel’s ongoing military operations in Gaza and recent U.S.-backed strikes on Iran. While the conversation’s specifics were not disclosed, the exchange underscores the complex interplay between political diplomacy and economic ties between Germany and Israel.

Germany’s relationship with Israel remains deeply intertwined with financial and defense-sector dynamics. In recent months, Berlin has resumed arms exports to Israel following a brief suspension in August 2025 over concerns about civilian casualties in Gaza. This decision aligns with a broader $4.5 billion missile defense deal signed between the two nations, described by Israeli officials as a "historical change" in their strategic partnership. However, the agreement has drawn criticism domestically and internationally, with activists accusing Germany of complicity in alleged war crimes.

The International Court of Justice (ICJ) recently ruled against imposing emergency measures to halt German arms exports to Israel, despite ongoing investigations into potential violations of international law. Meanwhile, Germany’s stance on Palestinian statehood— advocating for recognition only at the end of peace negotiations—has diverged from positions held by other European allies, including France and the United Kingdom.

Netanyahu’s refusal to entertain a two-state solution and his assertion that a Palestinian state would threaten Israel’s existence further complicate diplomatic efforts. Despite public criticism of Israeli actions, Merz has reiterated Germany’s unwavering support for Israel’s security, emphasizing historical responsibilities stemming from World War II while defending continued military cooperation.

As Merz prepares to meet U.S. President Donald Trump next week, the stability of Germany’s foreign policy—and its economic commitments to Israel—will remain a focal point for investors monitoring regional security and defense markets. The interplay between geopolitical risks and strategic alliances continues to shape global investment landscapes, particularly in sectors tied to arms manufacturing and international trade.