Treasury Authorized Three Military Programs with An Investment of 7,331 Million Euros
(Source: Spanish Council of Ministers; issued Dec 14, 2018)
The Council of Ministers has authorized an investment of 7,331 million euros in security and defense programs, in a Multi-Year Plan until the year 2032.

This budget line includes the increase in the spending ceiling for three programs in force, which will be allocated in full to the renovation and updating of material of the Armed Forces.

The Ministry of Defense will boost three large projects with this increase in spending, which will have an important impact on the economy and the Spanish defense industry.

These programs, according to estimates of this Department, will generate at least 8,500 direct and indirect jobs in the coming years.

F-110 frigates

The increase of the expenditure ceiling for this program amounts to 4,325 million euros, which will be invested between 2019 and 2032.

The F-110 are multi-purpose oceanic frigates that incorporate an integrated mast with sensors and antennas and in which technological programs have already invested 174 million euros. They will replace six frigates of the Santa María class, with 35 years old, to maintain current capabilities.

The construction of these five frigates is one of the pillars of the strategic plan of the public company Navantia and that guarantees workload for the viability of its plant in Ferrol (A Coruña). This program will generate 7,000 jobs during nine years: 1,300 direct in the public company, 2,000 in the auxiliary industry, in addition to another 3,500 indirect

VCR 8x8 Armored vehicles

The Ministry of Defense will invest a total of 2,100 million euros until 2030 in the development and construction of this new armored vehicle on wheels, known as 'Dragon'.

The VCR 8x 8 will replace the BMRs, which were withdrawn from certain international operations due to their deficiencies and lack of security for their occupants.

In this vehicle, developed entirely in Spain, the Government has already invested more than 90 million euros. The prototypes have been developed by the consortium integrated by Santa Bárbara Sistemas, Indra and SAPA.

Although the program is expected to be much broader, the investment that has been authorized today will allow the incorporation of 348 of these new vehicles that will be delivered progressively until the year 2025.

The development of this program will have a significant impact on the economies of Alcalá de Guadaira (Seville), Trubia, (Asturias), Aranjuez (Madrid) and Andoain (Guipúzcoa), towns in which they have production plants companies that participate in the project.

In total, it is estimated that the production of the new armored vehicle will generate some 650 direct jobs, and another 1,000 indirect ones.

Eurofighter

The Ministry of Defense, with the green light of today's Council of Ministers, will be able to continue working on updating and modernizing the "Eurofighter", the European fighter plane.

Thus, the cost ceiling for the European combat aircraft rises by 906 million euros until the year 2023, since the 9,254 million euros of the allocated budget has been exhausted.

With the increase in the ceiling of expenditure, Defense will be able to modernize and adapt these devices to the latest technologies so that they can compete on equal terms with those of the United Kingdom, Italy and Germany, the European partners participating in the project of the European fighter plane.

The 'Eurofighter 2000' is a European collaboration program in the field of NATO for the development, production and support in service of combat aircraft involving Germany, Italy, United Kingdom and Spain.

Spain acquired 73 'Eurofighter' aircraft. Currently, there are 69 devices in service and, in 2019, the remaining four will be received. It is expected that these devices will last their useful life in the year 2045.

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