The so-called “submarine affair,” considered the most serious case of suspected corruption in Israeli history, has been dogging defense agencies, politicians and public discourse since it broke out in 2016. The case involves three advanced Dolphin-class submarines that Israel seeks to acquire from Germany to add to its fleet of six similar subs. These vessels reportedly constitute an insurance policy of sorts against a potential Iranian nuclear attack, armed as they are with nuclear ballistic missiles that can be launched from a great distance at sea. Such an option would provide Israel with an offshore second-strike capability and ensure its dominance in terms of nuclear deterrence.

Five years later, the deal has yet to be signed. Egypt bought submarines from the same German manufacturer (ThyssenKrupp Marine Systems) in 2014, with a green light from then-Prime Minister Benjamin Netanyahu to German Chancellor Angela Merkel. But while Egypt has already received two vessels, Israel has received none.

Merkel, who paid a farewell visit to Israel this week marking the end of her term, met with the country’s top leadership, including President Isaac Herzog, Prime Minister Naftali Bennett and other leading figures. Netanyahu, currently head of the Knesset opposition, was conspicuously absent from the list. “She’s simply not willing to see the man,” a senior Israeli source told Al-Monitor on condition of anonymity. “Since the entanglement with the submarine affair, which set off investigations of suspected corruption in Germany and Israel, she prefers to steer clear of Netanyahu. She is fed up with complications.”

Netanyahu's nod for Merkel to sell Egypt advanced submarines caused a storm in Israel when it came out that the prime minister had not reported it to the security cabinet, his defense minister, army chief or other relevant military commanders.