The present report is the follow up to a research conducted in 2009 on Spanish military exports to Israel, and the violations of the Spanish and European legislation this action entails. This second report aims at exploring more in depth the rest of the security and defense relations. The establishment of the Israeli military industry in Spain, the provision of training and knowledge transfer by Israel, and the research projects on security manifest the boom in military relations between the two countries, and the process of privatization of public security we are witnessing. STRUCTURE 1// General framework of security and defense relations between Spain and Israel. Analysis of the Israeli military sector and its relation with the occupation of Palestine. Examines the strong dependency of the Israeli military sector on foreign markets. The development of political relations between the Israeli and Spanish governments, and major agreements on military and security matters. Describes the agreements in the area of R & D in Catalonia and the Basque Country with Israel. Identification of promoters/lobbies of relations between the two countries. 2// Spanish exports to Israel. On the Spanish exports of defense equipment to Israel: types of products, income and evolution. Study of the Spanish and European regulations relating to the control of exports of military equipment to non-member countries. Analysis of the authorizations/denials of Spain to Israel, and comparisons with other EU countries. Detailed description of the Spanish military industry and its relations with the Israeli military sector, as well as the role of the Spanish government in this business and its funding methods. 3// Israeli defense imports to Spain. Overview of imports from Israel to Spain, in the framework of the armament cycle developed by Israel. Comparative advantage of the Israeli military sector and the relationship between industry and government in the country. Development of the “Made in Israel” brand, and the controversies which it implies, especially in relation to the occupation of Palestine and the conflict in the region. 4// Made in Israel defense contracts: Spain as a business. Background and analysis of the Special Weapons Program (EAP) for the modernization of the Spanish Armed Forces with four specific programs with Israeli military companies: Spike missiles (Rafael), Mini-Samson turrets(Rafael), modernization of the F-5 (IAI ), PASI drones (Elbit Systems). Research agreements of the Framework Programme of the EU in new UAV technology (SeaBILLA, TALOS, AEROCEPTOR). Finally, identification and objectives of the Israeli subsidiary companies in Spain. 5// Israeli security and defense products in Spain. Mapping of the major Israeli private military and security companies (PMSCs) present in Spain; its clients, services, distributors, etc. Special emphasis on the most visible Israeli company Guardian Homeland Security. 6// Private security services. On the privatization of security in Spain and its relation with Israeli military and private security companies. Analysis of the main Israeli PMSCs: illegal business outside of Spain, services, company networks, political linkages, government institutions, sports clubs and Spanish companies. Special focus on the privatization process of Spanish penitentiaries. 7// Training: Israel teaches us. Overview of the training and research programs on security and defense, between public institutions and security forces, universities and private Spanish and Israeli corporations. Analysis of the contents, added value and professors of these programs. 8// Research and development relations in the military and security sector. This chapter deals with European research programs on security with a broad participation of Israel. Focus is placed on the EU’s Seventh Framework Program for Research on security issues.