The Ministry of Industry is playing an increasingly important role in the Spanish government’s roadmap to increase investment in Defence. The 10,471 million announced by President Pedro Sánchez have made all the headlines, although, in addition to this plan, the Council of Ministers has given the green light to a transfer of 2,819 million euros from the ministry led by Jordi Hereu to finance technological developments in defence programmes.
The Government explains that this transfer of credit will be aimed at “financing reimbursable contributions to companies for the development of qualified industrial technological projects related to defence programmes”.
This item confirms the key role that the Ministry of Industry will have in the new mechanisms promoted by Spain to increase investment. Just a week ago, the Government, also in the Council of Ministers, gave the green light to a loan of 1,011 million euros from Industry to Hisdesat to finance the Paz 2 program that includes the construction of two new earth observation satellites.
Industry is already a key player in defence programmes within the current financing model for the Armed Forces designed more than two decades ago. In the 2023 budget, extended for the second time this year, the Ministry has an item of 1,600 million for the so-called Special Modernization Programs (PEM).