Spain exempts Airbus from Israeli tech ban

MADRID, Dec 30 (Reuters) - Spain has granted Airbus exceptional permission to produce aircraft and drones using Israeli technology at its Spanish plants even though it banned military and dual-use products from Israel two months ago over its war in Gaza.

Approved last Tuesday by the cabinet and defended by several ministers this week, the exemption reflects the pressure from companies and domestic interests that some of Europe's toughest critics of Israel's recent war have faced as they attempt to impose trade sanctions.

It also risks increasing tensions within the ruling coalition between the Socialists and their hard-left partner Sumar when the government is already weakened by internal disputes and scandals over corruption and accusations of sexual harassment.

Neither Airbus nor the defence ministry was immediately available for comment.

SPANISH MEASURES ON ISRAEL WERE PASSED IN SEPTEMBER

Spain in September passed a law to take "urgent measures to stop the genocide in Gaza", banning trade in defence material and dual-use products from Israel, as well as imports and advertising of products originating from illegal Israeli settlements.

Its consumer ministry on Tuesday ordered seven tourist accommodation websites to remove 138 advertisements for holiday homes in occupied Palestinian territories or face the threat of sanctions in Spain.

Spain has already blocked 200 attempts to buy material linked to Israel, its digital transformation minister Oscar Lopez told national broadcaster TVE on Tuesday.

Airbus, which employs about 14,000 people in Spain and accounts for 60% of its air and defence exports, was granted the first exception in a cabinet meeting last week, written minutes showed, citing the "great industrial and export potential" of its aircraft "considered essential ... for preserving thousands of highly skilled jobs in Spain".

The European aerospace company produces its A400M and C295 transport planes, an A330 MRTT refuelling aircraft and SIRTAP surveillance drones at its sites in Madrid and Seville, all using Israeli technology.

The company is working with Spain's Ministry of Defence on a "plan to disconnect from Israeli technology", according to the minutes published last Tuesday, which did not provide further details.

(Reporting by Victoria Waldersee and Emma Pinedo, editing by Andrei Khalip and Aislinn Laing)