Berlin’s move, in response reaction to an Israeli plan to take control of Gaza City, marks a drastic change of course for Germany, long one of Israel’s staunchest international allies.
Merz expressed “deep concern” at the suffering of Gaza’s civilians.
It was “increasingly unclear”, he said, how the latest Israeli military plan would help achieve the aims of disarming Hamas and freeing the remaining Israeli hostages.
“Under these circumstances, the German government will not authorise any exports of military equipment that could be used in the Gaza Strip until further notice,” he said in a statement.
Netanyahu spoke to Merz later Friday to express his “disappointment”, announced a statement from the prime minister’s office.
“Instead of supporting Israel’s just war against Hamas, which carried out the most horrific attack against the Jewish people since the Holocaust, Germany is rewarding Hamas terrorism by embargoing arms to Israel,” it stressed.
Israel has until recently enjoyed broad support across the political spectrum in Germany.
Between the Hamas attack of October 7, 2023 that started the Gaza war and May this year, Germany approved defence exports worth 485 million euros ($565 million) to Israel.
The deliveries included firearms, ammunition, weapons parts, electronic equipment and armoured vehicles, the government announced in June.
Merz reiterated that “Israel has the right to defend itself against Hamas’ terror” and that “the release of the hostages and negotiations on a ceasefire are our top priorities”.
“The disarmament of Hamas is imperative. Hamas must not play a role in Gaza in future,” he added.
But “the new military push agreed by the Israeli security cabinet makes it increasingly unclear how these goals are to be achieved”, he continued.
Merz’s decision is a dramatic step for Germany, where the chancellor’s tone towards Israel had been sharpening in recent months as the dire humanitarian situation in Gaza deteriorated.
A poll published this week by public broadcaster ARD found that 66 percent of Germans expected the government to exert greater influence over Israel to change its actions in Gaza.
However, while often voicing concern, Germany had so far avoided major concrete steps.
It refrained from following France, Britain and Canada, which have announced plans to recognise a Palestinian state in September, arguing recognition must come at the end of Israeli-Palestinian negotiations.
Berlin has also opposed the suspension of the EU-Israel Association Agreement, which had been under review by the bloc.
The German-Israeli Society, which promotes closer ties between the two sides, condemned Merz’s move and pointed to a $3.5-billion deal under which Germany had agreed to buy Israel’s Arrow-3 anti-ballistic missile shield.
