An investigation by The Irish Times exposes a complex web of EU funding programs that have channeled significant resources to Israeli entities developing military-capable technologies.

This funding has continued despite "Israel's" war on Gaza beginning in October 2023 and warnings from the International Court of Justice about a "plausible risk of genocide," something EU member states are legally obligated to prevent under international law.

One of the most striking examples involves Israeli startup Xtend, which developed the Skylord drone system. The company received €50,000 from the EU's Horizon Europe research program in 2020 to develop technology for "intuitive control of drones in indoor and GPS denied environments."

By August 2025, "Israel's" Ministry of War announced a multi-million-dollar contract with Xtend to supply thousands of first-person view (FPV) drones to Israeli ground forces. The ministry specifically praised Xtend's Skylord technology as "one of the most effective technologies for urban warfare missions, specifically indoor and close-quarters combat."

This pattern extends beyond a single company. Israeli entities have received €1.3 billion through Horizon Europe funding between 2014-2020, with an additional €1.1 billion flowing since 2021.

Horizon Europe funding and Israeli military firms

Several concerning cases have emerged where Israeli military contractors received EU funding supposedly restricted to civilian applications. Rafael Advanced Defense Systems, a state-owned Israeli military company, was awarded €442,750 in July 2023 for developing "underwater security surveillance" for civilian use.

However, Rafael later posted promotional videos showing its Spike FireFly drone in surveillance footage from Gaza. One video showed the drone tracking and then exploding near a person on a Gaza street, accompanied by text stating, "Spike FireFly identifies the target, tracks it, and neutralizes the threat."

Rafael, an Israeli arms manufacturer, uses footage of a Palestinian being targeted and killed by a Spike FireFly drone in northern Gaza as a promotional material for its military products. pic.twitter.com/PPc59aOnSh

— Quds News Network (@QudsNen) July 12, 2025

Israeli access to European Defense Fund via Intracom

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"Israel" continues to access EU defense funds through indirect channels. In 2023, state-owned Israel Aerospace Industries acquired Greek contractor Intracom Defense, which remains eligible for EU military project funding.

Intracom currently leads a €42 million EU-funded drone development project called Actus.

Dual-use military technology

The investigation highlights the challenge of "dual-use" technologies, those applicable to both civilian and military fields. Through the European Innovation Council (EIC), many Israeli companies have secured substantial funding combining grants and equity investments.

According to the Israel Innovation Authority, "Israel" ranks among the top five recipients of EIC grants. These packages can include up to €2.5 million in grants and €15 million in equity investments, meaning the EU holds stakes in some of these companies.

Companies such as CyberRidge, which markets encryption technology for military purposes, and LightSolver, developing high-speed computing for aerospace, have received millions in EU support.

Israeli military company ties to EU grants

Many EU-funded companies have direct links to the Israeli military. For example, CyberRidge is led by former members of "Israel's" Elite Technological Unit. Other firms collaborate directly with major military contractors such as Rafael, Israel Aerospace Industries, and Elbit, which refers to its drones as "the backbone of the Israel Defense Forces."

F2 Venture Capital, a recipient of EU funding through the European Investment Fund, has invested in Regulus Cyber, a company involved with all major Israeli military integrators. According to The Irish Times, F2 announced Regulus's anti-drone systems were used "extensively" in "Israel's" unprovoked June 2025 attacks on Iranian military and nuclear targets.

EU-linked banks supporting Israeli settlements

The Irish Times investigation also revealed EU financing of institutions with ties to illegal settlements. The European Investment Bank has granted €846 million in loans to Bank Leumi and construction firm Electra, both listed by the UN Human Rights Council for facilitating Israeli settlements.

Norway's Government Pension Fund previously excluded both companies due to the "unacceptable risk" that they contribute to "serious infringements of the rights of the individual in situations of war or conflict."

EU policy shifts on military funding

In June 2025, European Commission President Ursula von der Leyen proposed amending rules to allow EIC funding for military purposes, stating that "dual-use projects are often not allowed to run on civilian platforms. We are going to change this."

However, in July 2025, the Commission proposed excluding Israeli companies from future EIC funding due to insufficient humanitarian aid access into Gaza. EU foreign ministers are currently debating the proposal.

While Horizon Europe officially restricts funding to civilian applications, the investigation reveals repeated breakdowns in enforcement. European Commission officials stated they would adopt "all appropriate measures" if evidence of noncompliance is found, including partial or full recovery of funds.

The Irish Times report raises urgent questions about the efficacy of EU oversight and the ethical implications of continuing to fund Israeli military technology amid an intensifying humanitarian crisis in Gaza.