The mounting cancellations of arms contracts by Spain have sent shockwaves through Israel’s defense sector, exposing a deeper crisis that extends beyond lost sales. Spain’s Defense Ministry last week canceled a $218 million deal with Rafael Advanced Defense Systems for Litening 5 targeting pods, following its earlier withdrawal from a $272 million Spike missile contract. Added to the scrapping of a $763 million Puls rocket system agreement involving Elbit Systems, these suspensions now total more than $654 million. Procurement officers across Europe, once reliable clients for Israeli defense systems, are now hesitant. As global corporations, European governments, and even Israeli civil society raise alarms, the Netanyahu government’s choices are branding the nation for generations.