Creation of the National Defense Fund to Re-Equip the Armed Forces is "A Historic Event"
(Source: Argentina Ministry of Defence; issued Sept. 16, 2020)
(Unofficial translation by Defense-Aerospace.com)
The Minister of Defense, Agustín Rossi, considered that it is “a historical event,” when celebrating tonight the approval by the Senate of the law that established the creation of the National Defense Fund (FONDEF), intended to finance the re-equipment of the Armed Forces.

"It is a specific fund that is intended for the re-equipment of the Argentine Armed Forces so that the objectives of defense policy can be met, which is to guarantee sovereignty," said the Minister of Defense about the scope of this initiative, while thanking "President Alberto Fernández for the political decision, Vice President Cristina Fernández de Kirchner for the trust, Minister Martín Guzmán for his understanding and the group of national legislators who supported this project."

Rossi added that this fund will allow the “fulfillment of the main mission mandated by the National Constitution and legislation, which is to guarantee the sovereignty of the country in the three spaces: air, land and sea," as well as "fulfill with all the secondary missions to help the community indicated by the President of the Nation in his capacity as Commander-in-Chief of the Armed Forces.”

“The defense industry is a strategic sector, strongly multiplying economic activity. With these resources, jobs will be created and value chains of small and medium-sized companies will be strengthened,” said Rossi.

FONDEF resources will be specifically allocated to the recovery, modernization and / or incorporation of equipment in accordance with the provisions of article 19 of Law 24,948, a rule that establishes the fundamental principles of the Armed Forces, the political, organic and functional bases. fundamental for its restructuring.

This project, which was originally presented by Minister Rossi when he was a national deputy, was approved by the lower house in November last year. And today it was approved by a majority in the Senate.

The law establishes that the destination and allocation of FONDEF resources will be carried out in accordance with the provisions of the normative framework of National Defense. In all cases, whenever possible, the following criteria should be taken into account:

1- To favor the substitution of imports, the development of suppliers and the international insertion of the local production of defense-oriented goods and services.

2. Promote productive, inclusive and sustainable innovation, through greater technological scaling up.

3. Increase research and development actions, both in the public and private sectors.

4. Improve the conditions for the creation, diffusion and assimilation of innovations by the national productive structure.

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