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Spain Defence and Security Report Q4 2011
Business Monitor International, Oct 2011, Pages: 108
The Spanish defence industry is witnessing an increasing squeeze on spending, in line with general budgetary trimming and austerity measures. The budget for 2011 was EUR7.2bn, marking yet another year of reductions aimed at shrinking the country’s deficit. Cutting spending in the sector has become a pan-European trend in 2011, which in turn has led to a similar decline in Spain’s export figures, thereby putting a new emphasis on relations with less traditional importers, particularly Latin America and Asia. Spanish defence firms are likely to be seeing fewer contracts both at home and abroad.
In industry terms, it has been a quiet quarter, although in August 2011, Santa Bárbara Sistemas, the General Dynamics European group, was awarded the supply of cartridges of 7.62 mm x51 links to the domestic army for EUR1.5mn, according to infodefensa.com. Meanwhile, in September Spain joined in with a bid by France, Germany, Italy and Poland to strengthen an EU defence policy by signing a letter of agreement, AFP reported. This came despite Britain abstaining from participation. The signatories had not yet revealed the contents of the joint letter; however, a diplomatic source said it highlighted the need for common defence structures between the European nations.
The Spanish Council of Ministers have also signed off the construction of five new Maritime Action Ships (BAM), including three patrol versions (BAM-P), one BAM-SR for search and rescue operations, and one oceanographic BAM-IO, reports the Spanish ministry of defence. The ships are made by Spain’s Navantia ship-building company, and will replace the existing patrol boats in the Spanish Navy, including the Barceló, Conejera and Toralla. The first BAM unit finished the last sea trials in July 2011.
Spain’s security risks remain moderate given the central government’s continued struggle against the Basque Fatherland and Liberty organisation (ETA), which seeks Basque independence and is accused by the government of being responsible for more than 800 deaths over the past 60 years. ETA’s call for a ceasefire in September 2010 (announced permanent in January 2011) should it fail to yield a lasting peace, would not be the first attempt to end the conflict to fall by the wayside, and there remains potential for the 40-year political struggle to continue for the foreseeable future.
Indeed, one year on after the announcement of the ceasefire there has been little by way of cooperation between ETA and the Spanish government. In September 2011, a Batasuna spokesperson, Txelui Moreno, criticised the government for failing to make any real or ‘constructive’ steps towards peace during the period, Expatica reports. Zapatero rejected these claims, and again called for the abolition of ETA, while Interior Minister Antonio Camacho made a statement saying that ‘the one who has to take the step is ETA’.
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