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Spain Defence and Security Report Q4 2009
Market |
Defence |
Report Type |
Market Research |
Country |
Spain |
Published |
14 September 2009 |
Number of Pages |
75 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Spanish defence spending was trimmed by a token EUR57mn in May 2009
The summer of 2009 has seen Euskadi Ta Askatasuna (ETA) violence return to the streets of Spain with a spate of attacks that has left three police officers dead and scores of civilians injured. This new ETA campaign has the primary aim of putting the group back on the ‘political map’ after the Spanish and French security forces arrested a string of senior ETA leaders late in 2008. The defeat of Basque separatist parties in the regional elections appears to have riled ETA into proving it can still strike at the Spanish state.
Defeat of the ETA threat is the main security challenge facing the Spanish state and it is given a high priority by the Madrid government over and above military missions to the Balkans, Middle East and Afghanistan. Meanwhile, on June 19 the first elements of 450 troops from the Soria 9 Infantry Regiment equipped with IVECO Lince armoured vehicles began deploying to Afghanistan. The troops were to operate in Heart and Baghdis during August and September 2009 to provide security during the Afghan presidential election. Spanish defence spending was trimmed by a token EUR57mn in May 2009 in a sign that the country’s economic problems are starting to impact on defence spending. Although Spanish participation in international missions is funded outside the normal defence budget process, the country’s defence ministry said it would cut back on training exercises, rather than recruitment or procurement.
This was the third cut in defence spending in a year and may be an indicator that the Spanish government’s attempts to respond to the global financial crisis were in a certain degree of chaos, with little coherent long-term planning.
Spain’s two major defence industrial projects faced major milestones this summer, with the Eurofighter Typhoon combat aircraft project moving forward with the signature of the Tranche 3 production contract on July 31 2009. This committed Spain to the production of 20 aircraft and brought to an end a period of considerable uncertainty over the programme.
The other major aircraft project, the A400M military airlifter, is still far from being home and dry. Delays in developing the new TP400 engine for the aircraft have so far prevented first flight of the prototype, which has led to several customers threatening to pull out of the project and buy alternative aircraft or demand compensation payments from the Airbus Military Company.
This crisis came to ahead in June 2009 with the company managing to persuade its customers to give it another six month reprieve. Airbus Military now has to come up with a new production and delivery schedule. In return the customers are expected to offer the company a new contract and perhaps a new injection of funding to help speed development of the prototype and the move to production.
For the government the situation is a major political embarrassment and a serious threat to employment in the Seville region, where the A400M assembly plant is based. The government has put considerable effort into trying to keep the A400M project intact and avoid collapse.
Meanwhile, the land system sector is on the verge of major restructuring as a result of the programme to provide the army with a new family of 300 large wheeled infantry combat vehicles. A request for proposals was issued in May 2009 and bids are expected to be submitted by August and a short list defined by the end of the year. Deliveries are to start in 2010 to replace the army’s ageing fleet of VBR vehicles.
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