Spanish defence market forecasts by BMI company.

Last report done by Business Monitor International about the Spanish defence market predicts a solid outlook for the Spanish defence industry and a stable internal and security outlook.

BMI publishes specialist business information on global emerging markets for senior executives worldwide. A wholly independent, London-based company, BMI has specialized in the analysis of global emerging markets since its foundation in 1984. BMI's comprehensive range of weekly, monthly and annual reports contains the latest available data, forecasts and analysis on political risk, economic performance and outlook, the business environment, finance and leading industry sectors.

Three key ideas:

-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.

-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.