Spain Hikes Defense Budget “in the context of the war in Ukraine”

Spain’s budget is expected to touch €12.8 billion in 2023, a hike from what it set aside for defense expenditure for the current year, owing to Russia’s sudden invasion of Ukraine.

The planned increase in the budget will allow Spain to maintain operational capabilities currently available, as well as to acquire new capabilities to replace those that are becoming obsolete, Spain’s defense ministry said in a release.

The budget allocated to special modernization programs is 72% more than what was budgeted in 2022. The ministry has set aside contains €4.9 billion for investments in special modernization programs, which will help create 22,667 jobs directly or indirectly. This amount, added to the €7.9 billion, represents an increase in defense policies of 25.8%, which allows progress towards the commitment reached with NATO to allocate 2% of GDP to defense spending in 2029.

With the 25.8% increase in defense policies, the objective of reaching 1.2% of GDP will be met. They are projects that the country will undertake includes, among others, the EF-2000 program in Getafe; the A-400M program that has allowed for a final assembly line in Seville; the S-80 program, in Cartagena; the BAM-IS program in the Bay of Cádiz; the associated programs F-110, in Ferrol or the associated programs VCR 8x8, distributed between Asturias, Seville, Guipúzcoa and Madrid.

Spain is also launching new projects, such as the program for the MPA Maritime Patrol Aircraft, the program for Hydrographic Vessels or the program for the VIGMA Maritime Surveillance Aircraft, among others.

The budget without the special modernization programs is estimated at €7.7 billion, 6.5% more than in the 2022 financial year, reaching €7.9 billion, 8.5% more than in this last financial year, if European funds are included.