TEL AVIV and JERUSALEM—Non-state groups have ballistic missiles, distant neighbors are refining weapons-grade uranium, long-range rockets can now hit anywhere in Israel and there are few governments that can be held responsible for any act of war or terror in the Middle East. With that kind of environment, planning a defense budget takes on nightmarish qualities since any misplaced priority can have effects that stretch for years. The multi-part effort begins with an intelligence ...


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