Italy Defence and Security Report Q1 2013

BMI's Italy Defence & Security Report for Q113 examines the country's defence posture, defenceprocurement and defence industry. The report seeks to examine how the Italian government is attemptingto balance its defence budget amid the country's sluggish economic performance.

The report details the Italian armed forces structure, including its order of battle. In addition, it examinesthe government's efforts to streamline the size of the armed forces, and better configure them to performout-of-area operations. The report also discusses Italy's long-term procurement plans, and the country'srecent procurement trends.

Italy's defence sector faces a number of distinct challenges in the near future. The country is performing aprotracted reorientation of its strategic posture to essentially reconfigure its armed forces from theirerstwhile NATO posture – which sought to defend the southern part of the European continent againstSoviet Union and Warsaw Pact aggression – into an adaptable and agile force able to rapidly projectpower beyond Italy's borders. For this strategic aspiration to become a reality, the Italian government ispursuing a number of projects that seek to improve procurement platforms, enhancing the armed force'spower projection capabilities and providing force multiplier capability in theatre. As well as pursuingthese objectives, the Italian government is trying to achieve them in period of profound economicstagnation, which is having an adverse effect on the country's economy.

Over the last quarter, BMI has made a number of changes to its forecasts. These include:

A fully detailed order of battle for the Italian Army, Air Force and Navy.

An outline of the personnel and equipment modernisation initiatives ongoing in all three Italianservices.

Up to date information regarding procurement activity during Q412.