The European Union is Israel's most important trading partner. An increasingly important part of that trade is in goods and services of the defense and homeland security industries. These have become a pillar of Israel's economy, and also play a big role in a number of EU countries. Israel touts its "battle-proven" technologies such as electronics and drones used in surveillance and assassinations, as well as the expertise and equipment it uses to repress popular resistance activities in the Gaza Strip and the West Bank. In Europe, France and the United Kingdom are among the world's premier arms exporters -- including to Israel. Germany and Italy are also significant in this respect, with the former providing submarines (capable of being refitted for nuclear weapons) and the latter military training aircraft.
EU-Israel military co-operation is not confined to trade. The EU subsidizes defense oriented research co-operation with Israel that involves corporations and universities and costs EU taxpayers hundreds of millions of dollars.
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