Business
Germany, Israel fail to agree on submarine sale
Reuters
Published: 25.07.10, 07:37
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27 Talkbacks for this article
1. I thought israel had a strong economy. A strong economy
Peter ,   Vienna-Austria   (07.25.10)
Doesn't need discounts. Hey,how about we give them for free???
2. # Peter. Inappropriate sarcasm
Sagi   (07.25.10)
No amount of anything that Austria would give Israel free would atone and cleanse yourselves of the atrocities and inhumanities perpetrated by the Austrian people against fellow human beings, namely Jews who lived in and contributed to the great austro-Hungarian Empire for centuries.
3. Back off, Peter, you decadent Austrian!
Cameron ,   USA   (07.25.10)
If anyone is going to be granting Israel tremendous discounts & free weapons, it will be us. This is OUR turf, and specialty, and no one else is allowed to operate in such a manner.
4. # 1 Peter again
Sagi   (07.25.10)
Three people of Germanic culture who had an inestimable influence on the world. Einstein, Marx, Freud. Three people of Germanic culture who had an inestimable influence on the world. Hitler, Eichman, Goebels. Don't be so quick to lash out with your sarcastic tongue
5. this will cost Germany hundreds of millions if Israel buy US
zionist forever   (07.25.10)
Israel wants to spend $1.6 billion in Israel if the German government will pay 1 third. What Israel is basically asking for is a discount. Isn't it better to offer a discount and get a sale rather than no sale at all? If Israel can'r get favorable terms from Germany from the sale of surface ships it will probably buy the US Littoral Combat Ship which the navy wanted originally but it was decided even with aid it was to expensive even with military aid so the government approached Germany. Only Germany could build the submarine but whilst 5 subs is not as good as 6 the navy can manage with 5. If they buy the LCS which is about twice the price of the German boats. Israel does have the option of buying the LCS if Germany won't offer favorable terms. Even a subsidized contract of this size would have been worth hundreds of millions to Germany which would probably have created extra jobs in the ship building industry. As a result of its economic situation Greece already canceled a contract for the sale of a submarine made by the same shipyards. A subsidized sale to Israel could have made up for that but instead the company loses 2 potential sales instead of just 1. Now they are not going to make any money or hire extra people. Whilst Israel wants these boats if Germany refuses over price Israel has other options and can buy from somebody else meaning no money at all for Germany. The real loser from this situation is not Israel its Germany who makes nothing.
6. So, now Peter, Austria-Vienna is German ?
Jonathan   (07.25.10)
Peter, don't you have any better things to do with your time, like building your own hatred based party for the next election ? Or, misinforming Palestianians about the how to conduct peace negotiations (with rockets and missiles against Israeli citizen), so that they will go back to the stone age, instead of jumping on any Israel's survival related story posted here ? As a German/Austrian, I find this ridiculous behaviour a bit inefficient from your side... ;-)
7. SUBS . HMMM - ??? - !!!.
Arn. ,   SWEDEN.   (07.25.10)
WHY NOT TRY TO OPT FOR SWEDISH ONES - ??? - THE BESTS SUBS IN THE WORLD !!!. MMM - !!!. Arn.
8. Come on,dont be ridiculous . Lets see you build your own Sub
Peter ,   Vienna-Austria   (07.25.10)
If the Germans don't want to offer you those sub's,then go ahead and be my guest and build your own. Why do you always have to go beg others for technology?? Surely the Germans wont suffer an iota,as there are plenty of other customers awaiting for a juicy deal with Germany to gain those subs(take the Saudis for instance). And guess what,they pay in CASH,where as israel has to beg for discounts.
9. 8
zionist forever   (07.25.10)
Israel owns part the design rights to the Dolphins. The subs Israel has are not the off the shelf export version of that class but they are built to Israeli specifications. They are bigger have more torpedo tubes and lots of other things. By the time all the modifications are made in Germany & Israel its in a class all of its own. Israel also already has 5 Dolphins it wants 1 more to have a fleet of 6 because Israel wants to start operating its navel forces far from Israels shores... deal with potential enemies by taking the war to them not waiting for them to hit Israel first. Other than Iran the only countries in the Middle East operating submarines are Israel & Egypt, the Saudis don't have any and both Egypt & Iran operate Russian boats so the Saudis won't be buying. If Germany wants to give a subsidy a 1 third discount on a $1.6 billion contract for subs and ships which would still be worth hundreds of millions to Germany even with the subsidy. Fine Israel will manage with 5 submarines and it will buy the surface ships from the US or it will design its own which it has done with all the other ships it currently operates.
10. #5, zionist forever
knurks ,   Germany   (07.25.10)
If a one-third discount would still be economic for the Blohm+Voss shipyard they would sell the ships for this lower price to Israel. But it's obviously a bad deal for them and that's why everybody's crying for subsidies from the German government. This is a free-market economy and every company has to look for itself how they sell their goods. Why should I, the German taxpayer, give my money to B+V just because their ships are too expensive for Israel? B+V (and the government) aren't idiots and I strongly suppose that they know very well what they are doing. They will do what's best for them and in this case it's best not to sell the ships. Calling them losers is rubbish. If I would go to Mercedes and ask for a one-third discount, because that's better than no sale at all, they would show me the door and tell me to buy a Ford.
11. Peter # 8
Eaglebeak ,   Left Coast, USA   (07.25.10)
Why do you always have to go beg others for technology?? Israel has the technology, what they don't have in this case is the industrial assets to build it.
12. knurks # 10
Eaglebeak ,   Left Coast, USA   (07.25.10)
Hi knurks, I had no idea Germans paid taxes to corporations. I thought we were over taxed here but at least we only pay them to our government. Blohm+Voss does and should have the right to make business decisions for what they believe to be the good of their company but I think zionist forever makes an interesting and perhaps valid case.
13. discount better then nothing
thommy ,   germany   (07.25.10)
germany didnt give the discounts mainly to save israel but mainly to save its submarine industry the shipyards are ruined and need the cash of the german state so its better to pay 1 third then to pay direct money to blohm and voss and all the shipyards also we can support israel and while that support the shipyard industry its great i dont understand what merkel wants
14. Come on guys, Israel has money and subs are more important.
leo ,   usa   (07.25.10)
I am sure Germany will build subs for Israel eventually. It is just normal process of negotiation. No reason to draw any conclusion yet. Oh, and stop replying to this Peter fella. His job here is to troll and to provoke. Your replies make him happy regardless of what you say.
15. if Israel stopped its aid to gaza, there would be $
op ,   nyc   (07.25.10)
dual purpose - stop aiding your closest enemies (humaniterrorists) and save money to defend against them and iran with a shiny new German sub with blaupunkt sound system
16. #13 right. end
yoav ,   germany   (07.25.10)
17. Why not keep them for ourselves?
Max Maier ,   Germany   (07.25.10)
Why shouldn't we keep the ships for ourselves when they are being paid for by German taxes? As the German navy is currently decommissioning submarines, it's hardly a plausible proposition for the German taxpayer to pay for someone else's subs instead. There are probably some ships the navy or research institutes might be able to put to good use. The days of free handouts for anyone who knocks at the door are over. Neither Israel nor the EU are as easily going to walk away with billions of German taxpayer money any more as they did in the past.
18. @17 It seemts to be out duty to pay the world..
Neo ,   Germany   (07.25.10)
I have allready resigned to it. It seems to be our duty to pay the EU, Europe, Greece, Israel, Africa even China..after the USA we are the biggest development aid payer worldwide..
19. peoples, peoples, peoples
roli ,   miami beach, USA   (07.25.10)
something that gets little fanfare is the dead sea potash for steal alloys used in almost every European plate, giving it an unparalleled refinement. As an American, I think that Israel needs an aircraft carrier more than a sub, maybe one with a detachable sub.
20. 5 zionist
Hantz ,   Germany   (07.26.10)
Libya, Iran and others are just waiting for us to sell them, we listen to israeli concerns so far, but it is probably time to stop.
21. 19 rolli
sam   (07.26.10)
Israel itself is the size of an aircraft carrier, don't be ridicules. it is a land based aircraft carrier no more.
22. 11 eaglebeak
Dan ,   USA   (07.26.10)
Israel and its technology reminds me of this guy coming to a tailor and offers him a deal to go 50 50 on a suit, he brings the button the tailor does the rest...lol...
23. Welcome to the club, Neo
Cameron ,   USA   (07.26.10)
You'll find there is a never-ending array of people on the planet ready to dip their hands into your coffers. Expect neither repayment nor gratitude in return for your largesse.
24. US aid also likely to start drying up next year too.
Bloodscot ,   Dallas, Texas   (07.26.10)
US aid has been tricky because much of it also helped keep US jobs but Tea Party is about to start using it as a campaign issue soon. They want to cut all foreign aid by 50% and domestic spending by 5%.
25. #5 Zionist, what?
ben Ish   (07.26.10)
Exactly how is Israel going to buy combat ships from the US??? Hussein Usama, I mean Obama, has been running a de-facto arms embargo against Israel since the day he took office. He has even gone so far as to block shipments previously approved by GWB. What makes you think they are going to approve any sales? MAYBE they will unblock previously approved shipments, or perhaps some token vehicle/craft or w/e for showing to the press, but Obamao isn't selling arms to Israel.
26. israel-borrow $ from the saudis to buy the kraut sub.
debra ,   usa   (07.26.10)
the saudis want stability in the mideast as much as israel does. and they know israeli subs can be used against the iranian hitler who is also their enemy.
27. Israel's defense budget vs Israel's total economy
Menachem ,   Israel   (07.26.10)
Israel's annual defense budget is about 15 billion dollars which should be compared to Israel's total annual GDP which amounts to 215 billion dollars. In other words, although Israel's spends proportinally more on its defense than other western nations, the defense budget is only a small portion of Israel's expanding GDP.
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