The Government distributes between Airbus, Navantia and Indra 4,000 million of military spending

The Ministry of Finance reveals one of the most controversial issues in the budgets for the coalition government.

Thomas Osborne
Thomas Osborne
07 October 2022 Friday 11:44
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The Government distributes between Airbus, Navantia and Indra 4,000 million of military spending

The Ministry of Finance reveals one of the most controversial issues in the budgets for the coalition government. The 2023 public accounts bill reflects black on white how the increase in defense spending will be distributed, which companies will benefit and what type of military weapons are expected to be purchased over the next year. The socialist area of ​​​​the Executive complies with the commitment to promote the national industry but “sneaks” to United We can several acquisitions of war material such as missiles, rockets and mortars.

"Budget by programs and memory of objectives, volume IV, section 14" of the budgets for 2023. There is one of the keys to the latest government budgets, the most complicated and the ones that generated the most tension. The figures are those released by María Jesús Montero this week: the special weapons programs will go from having a budget of 2,848 million to 4,900 million. 72.1% to fulfill the agreement that Pedro Sánchez promised NATO at the Madrid Summit.

The section breaks down which programs are going to be promoted. There are some already underway that receive an added budget allocation and other new ones that are incorporated into the Government's plan to promote the military industry. It is important to point out that the increase in defense spending will not have an impact on the public deficit; These are credits that are going to be cut up and approved throughout the remainder of the legislature.

The company that will receive the greatest budget burden is, by far, the military branch of Airbus. Almost 2,400 million euros will go to projects in which the multinational participates, according to the documentation registered by the Government in the Congress of Deputies. Among the military programs that will be promoted, four stand out above the rest: that of the Eurofighter, which will receive a boost of 620 million, that of the NH 90 helicopter, with a budget commitment of 445 million, and the supply and transport aircraft MRTT and A/400M, with an investment of 270 million in each of them. For comparison, only the dependency item, one of the most outstanding due to the boost given by the Treasury, will increase next year by 600 million. The Ministry of Expenditure, in collaboration with Defense, also foresees the signing of some future arms contracts, such as the one for the C-295 plane or the one for different drones.

Navantia is another of the companies in the military industry that will receive a strong economic boost in the 2023 budgets. The SEPI-dependent company will have a public investment of more than 900 million euros spread over several programs. The frigates stand out: the F110, with a total expenditure of almost 490 million, and the F100, with 105 million. The S-80 submarines, meanwhile, will receive financial support of 200 million.

The Government also decides to take care of Indra throughout 2023. The technology company, in which the State has a 28% stake, will receive a budgetary injection of 636 million in 2023. Several star projects, among which the next generation weapons system stands out, a key piece in the future air combat system, which will have an investment of 525 million. Indra also participates tangentially in other programs, such as the Eurofighter, for example.

GDELS-Santa Bárbara Sistemas is the fourth military company to receive a powerful public injection. The firm in charge of manufacturing the armored 8x8 or the Leopard and Pizarro will improve their financing up to 300 million.

Rain of millions for the military industry, to boost employment in the sector and generate up to 23,000 jobs, according to the Government. But also for weapons. In the special modernization programs there are several purchases of products such as anti-tank missiles, mortars or high-mobility rocket launchers. More than 175 million will be dedicated to these acquisitions. And a significant investment in Patriot missiles, from the US firm Lockheed Martin, and Chinook helicopters, from Boeing.

United We Can has denounced in the last hours that the PSOE was "disloyal" because it hid defense spending in budget negotiations. The Second Vice Presidency, for its part, defends that the pact on military investment with Sánchez sealed in the summer was that this material would not affect social items, as it will be.