Israel set to buy three German submarines, but at double original price

Israel will sign a deal to purchase three German submarines this week, but at double the original asking price, according to reports.

Israel has been in negotiations with the German government about purchasing the watercraft for years but has been hit by delays following disputes over the price and scandals.

A committee including key Israeli ministers and Prime Minister Naftali Bennett agreed to go ahead with the deal this week.  

The committee also postponed a vote on a possible probe into the so-called "submarine affair" - or Case 3000 - which hampered the deal and plagued former Prime Minister Benjamin Netanyahu's government.

The German and Israeli governments signed a memorandum of understanding in 2017 setting out the Israeli defence ministry's plans to buy three submarines for 1.8 billion euros.

With the deal finally moving forward in recent weeks, it appears that Israel now might have to spend 3 billion euros on purchasing the vessels, after German shipbuilders ThyssenKrupp raised the prices, according to Haaretz.

Another Israeli outlet, estimated the cost of the deal to be 1.5 billion euros. It is believed the German government will subsidise the deal to the tune of 600 million euros but will reportedly not increase this amount despite the price hike.