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Spain Defence Report Q1 2007Published by: Business Monitor International Published: Mar. 1, 2007 - 49 Pages Table of Contents
AbstractBMI’s newly released defence and security report Q107 predicts a solid outlook for the Spanish defence industry and a stable internal and security outlook. Socialist Prime Minister Jose Luis Rodriguez Zapatero is playing a shrewd game of politics. In key domestic issues, such as the autonomy demands of the Basque and the Catalonian regions, Zapatero has ceded some ground whilst moving towards negotiations in 2006. The risks were great, both of giving concessions to terrorists and of being seen as attempting to Balkanise the country, and proved to be misjudged by the December 2006 ETA bomb attack in Madrid. Whatever Zapatero is doing, he is doing it right - opinion polls still place his party ahead of its rival conservative opposition party, the Partido Popular. With the incorporation of a new generation of younger voters, the government may gain support for a modernising agenda across a wide range of social and political issues. There is also an opportunity for Spain to gain a stronger voice within Europe, based on a good relationship with many of the accession countries.Relations between the central government in Madrid and the country's 17 autonomous regions can sometimes be difficult, sparking disputes over a wide range of issues. In the fourth quarter of 2006, ETA broke a nine-month ceasefire and put an end to a period of dialogue. Spanish security forces continue to focus their attention toward international threats. There are currently no major conventional military threats to the country, but the threat from international and domestic terrorism remains very real. Spain’s wake-up call came in March 2004, when al-Qaeda detonated a series of bombs on Madrid’s rail network. The bombings had a profound effect on both Spain’s domestic and foreign policy, in terms of Spanish counter-terrorist operations and the withdrawal of Spanish troops from Iraq. The ongoing modernisation process at the heart of the armed forces, combined with an increase in Spain’s involvement in peacekeeping operations, has justified an overall increase in the defence budget. Also, in the light of the Madrid bombings and the pressing need to boost counter-terrorism operations, the new administration has opted for a 17.1% increase in the Security Services’ budget. Total expenditure is forecast to increase steadily from EUR9.03bn in 2005 to reach EUR10.15bn by 2010. The defence industry will benefit from planned increases in government expenditure. Restructuring and consolidation in the Spanish and European defence industry, and the state’s continued relinquishment of its hold on the industry, has allowed Spanish firms to increasingly integrate into pan-European and transatlantic markets, and gain greater access to international markets. As a result, arms exports are expected to rise in the near future, and imports are also likely to benefit from the government’s modernisation plans. Get Full Details About This Report >> |
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