New Market Research Report: Spain Defence & Security Report Q1 2011

Fast Market Research recommends "Spain Defence & Security Report Q1 2011" from Business Monitor International, now available
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Jan. 10, 2011 - PRLog -- As one of the PIGS European economies, Spain has difficult financial problems to deal with. Given the recent Irish bail-out, eyes are on the Zapatero government to bring spending under control. The bail-out of Ireland should hopefully stop the spread of the contagion to the other peripheral eurozone countries by reassuring investors of the political will behind the eurozone project. However, this is still far from certain. Domestically, long promised labour reforms are essential, as is a steady hand on fiscal consolidation. Export-led growth is also critical, as Prime Minister Zapatero reiterated in November 2010. Unemployment is currently running at around an official mark of 20% and is suspected to be higher. This has brought into question the role the approach government should take in addressing its fiscal position, with 1% growth predicted for 2011, shrinking tax revenues and a depressed property market.

This has strongly effected domestic defence spending. In October 2010, it was revealed that the overall budget for 2011 will be EUR7.1bn, which suggests a headline reduction of 7% over the 2010 budget. However, due to concessions given over the course of 2010, the actual figure is more likely to be around 3.5%, revealed Constantino Mendez, the secretary of state for defence, whilst presenting the 2011 budget to the congressional defence committee. Much of the cuts will be borne out by a reform of labour laws, and a concomitant reduction in the salaries paid to civil servants, realising a saving of 5% of the total personnel bill. Additionally, the budget will attempt to maintain its current procurement commitments, with the possibility of delaying or spreading out payments over a longer time frame. However, Mendez did call for a reduction in investment spending over the medium term. The majority of the cuts will be in the Department of Defence, and not the individual service branches.

All news is not bad, however. While domestic military spending cannot be guaranteed, interest has been expressed by several developing countries in hardware from Spain. For instance, the Saudi Arabian and Spanish governments have firmed up previous military co-operation treaties, culminating in a meeting in November, in Madrid, between an Assistant Minister of Defence for Saudi Arabia and the Spanish defence Minister. Topics of discussion included piracy and the ongoing operations within Afghanistan, The current state of military co-operation between the two countries is mainly based around Spanish training of Saudi pilots in Saudi Arabia, at Moron Airbase, in Southern Spain. Additionally, AFP has reported of Saudi interest in the purchase General Dynamics Leopard 2E main battle tanks from Spain, in a deal which is reported to be possibly in the region of EUR3bn. While no deal has been confirmed, and any agreement will not only be months away but is also dependent on agreements from Germany's Kraus- Maffei and Rheinmetall group (the holders of the licenses for the tanks). If the deal is concluded, it is likely to be for around 200 of these tanks, and will be one of the largest ever arms deals made by Spain. Further to this, Indian interest in the Eurofighter may also provide a large cash injection into the industry.

Domestic terrorism also does not look so bleak. In September 2010, ETA declared a unilateral ceasefire. This is not the first time that this has happened, and the group has broken such ceasefires in the past. However, there have been no deaths attributed to it in over a year, AP reports, and there have been suggestions from both Batsuna (the political wing of ETA), and current ETA operatives that there may be the possibility of an internationally verified de-arming. This may be due to that fact that ETA is now weaker than it has ever been before - a rhetoric which has been repeated by several senior government ministers.

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Partial Table of Contents:

Executive Summary
SWOT Analysis
- Spain Security SWOT
- Spain Defence Industry SWOT
- Spain Political SWOT
- Spain Economic Industry SWOT
- Spain Business Environment Industry SWOT
Global Political Outlook
- Global Hotspots
- Latin America: More Of The Same
- Western Europe
- Central Europe
- South Eastern Europe
- Russia And The Former Soviet Union
- Middle East: Mostly The Same Old Challenges
- Sub-Saharan Africa: Definitive Elections Pending
- Asia: Accommodating ibzng A More Powerful China
- Wild Cards
Global Security Outlook
Regional Political Analysis
- The Future Of NATO
- The Strategic Outlook For The 2010s
Security Risk Analysis
- BMI's Security Ratings
- Table: Europe Security Risk Ratings
- Table: Europe State Terrorism Vulnerability To Terrorism Index
- Spain's Security Risk Ratings
- City Terrorism Rating
- Table: BMI's Western Europe City Terrorism Index
Political Overview
- Long-Term Political Outlook
Domestic Security Overview
- Domestic Terrorism
- Table: Background Brief - ETA
- Timeline: Internal Threats
- International Terrorism
- Latest Developments
- Timeline: External Threats
Armed Forces And Government Spending
- Armed Forces
- Table: Western European Armed Forces, 2010
- Defence Posture
- Defence Reform
- International Deployments
- Table: Spain's Foreign Deployments
- Co-ordination And Joint Operations
- Weapons Of Mass Destruction
Market Structure
- Arms Trade Overview
- Timeline: Defence And Procurement
Industry Forecast Scenario
- Table: Spain's Armed Forces, 2000-2008 ('000 personnel)
- Government Expenditure On Defence Industry
- Table: Spain's Defence Expenditure, 2008-2015

Full Table of Contents is available at:

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