Madrid, Spain – Spain’s government halted a controversial $7.5m deal to buy ammunition from Israel on Thursday, following criticism of it from far-left allies within the governing minority coalition.

The country’s socialist prime minister, Pedro Sanchez, intervened to cancel the deal after Sumar, a group of left-wing parties, threatened to pull out of the governing coalition.

“After exhausting all routes for negotiation, the prime minister, deputy prime minister and ministries involved have decided to rescind this contract with the Israeli company IMI Systems,” a government source, who did not want to be named according to Spanish government practice, told Al Jazeera on Thursday.

Spain has been critical of Israel’s war on Gaza, and in October 2023, pledged to stop selling weapons to Israel. In February 2024, it said it also would not buy weapons from Israel. However, in the same month, the Spanish Ministry of Interior signed a deal with IMI Solutions to purchase 15 million rounds of ammunition. The ammunition was destined for the Civil Guard, Spain’s semi-military police force.

However, after protests from five ministers from Sumar, the Spanish government began a study to determine whether it was feasible to cancel the order.

“In October 2024, a study was started into the possible ending of the contract. After the study, the ministry decided to follow the recommendation from the state attorney, who advised against the ending of the contract at that stage, so the contract was honoured,” a spokesperson for the Spanish Interior Ministry told Al Jazeera, adding that ending “the contract would have involved paying … [IMI Solutions] without receiving the material.”

On Wednesday, April 23, the Interior Ministry said it would go ahead with the arms deal, six months after seeking to cancelling it, to avoid paying compensation to the Israeli company.

In response, Yolanda Díaz, deputy prime minister and leader of Sumar, told reporters in Barcelona, “This deal must be rectified. I insist, it is a flagrant violation of the agreements when we are witnessing the live genocide of the Palestinian people.”

Analysts said the row could further damage already tense relations between the Socialists and Sumar in Spain’s fragile government, especially after Sanchez announced on Tuesday that his government would raise defence spending to 2 percent of gross domestic product (GDP) to hit NATO targets, a move which angered Sumar. Under pressure from US President Donald Trump, Spain, which has the lowest NATO budget among its 32 members, rolled out a 10.5-billion-euro ($12bn) plan to meet the 2-percent goal this year.

Spaniards were divided over the ammunition deal, with a poll for online newspaper 20minutos.es showing that 48.46 percent of the 7,871 people surveyed opposed it, while 46.94 percent backed the deal and 4.58 percent did not know how they felt.

“Buying this ammunition would have shown that Spain is not supporting Palestine. It would have been a betrayal of the [more than] 50,000 people who have died in Gaza in the genocide there,” Igor Otxoa, of the Guernica Palestine organisation, a civic organisation, told Al Jazeera.

In the wake of the dispute, Veronica Martinez Barbero, Sumar’s parliamentary spokesperson, told Al Jazeera Spain should not go ahead with the contract.

“There is a question of not completing promises. The defence minister said Spain would not buy these weapons. We want this to be rectified, and this contract not be completed,” she said.

But not everybody has supported the decision to cancel the contract. Astrid Barrio Lopez, a political analyst at the University of Valencia, told Al Jazeera the decision “shows that there is little judicial security for companies dealing with the Spanish government and little leadership within the government”.

The Israeli embassy in Madrid could not be reached for comment.

Late Thursday, Israel criticised Spain’s decision to halt the ammunition deal and accused it of “sacrificing security considerations for political purposes”.

“Israel strongly condemns the decision by the Spanish government to unilaterally breach a contract signed with the defense company IMI Systems, and its announcement that it will refrain from future defense deals with Israeli companies,” said Israel’s Foreign Ministry in a statement to the AFP news agency.

It added, Spain “continues to stand on the wrong side of history – against the Jewish state that is defending itself from terrorist attacks”.