DEFENCE BUDGETS AND INDUSTRY:
TABLES AND GRAPHS
Roberta Maldacea, Alessandro Marrone, Paola Sartori
July 2015
ØGENERAL OVERVIEW
ØAEROSPACE, SECURITY AND DEFENCE
INDUSTRY
ØITALIAN OVERVIEW
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GENERAL OVERVIEW
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COMPARISON EU-US: Procurement and R&D 2013
(billions of euro)*
160
TOT 141
R&D**
140
120
52
Procurement
100
80
60
89
40
TOT 37.5
7.5
20
30
0
US
European Union
Source: elaboration based on EDA data and National report for US
*Official EUR USD exchange rate from 1/01/2013 to 31/12/2013 (average) from the Central European Bank Website
** For US it incluedes Research Development Test and Evaluation (RDT&E); for EU R&D includes Research and Technology (R&T))
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EUROPEAN SPENDING FOR DEFENCE FUNCTION* 2013
(billions of euro)
43.9
45
40
35
30
25
20
15
10
5
0
33.3
31.4
14.4
UK
Germany
France
Italy
*Note: Defence Function includes all expenditures necessary to perform the specific set of tasks assigned to Army, Navy, Air Force
and joint component, as well as technical and administrative personnel of Defence Ministry
Source: IAI elaboration based on Documento Programmatico Pluriennale per la Difesa 2015-2017
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EUROPEAN SPENDING FOR DEFENCE FUNCTION AS % OF GDP 2013
Source: IAI elaboration based on Documento Programmatico Pluriennale per la Difesa 2015-2017
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RATIO DEFENCE FUNCTION SPENDING/MILITARY PERSONNEL 2013
(thousands of euro)
300
260
250
178
200
150
141
100
82
50
0
UK
Germany
France
Italy
Source: IAI elaboration based on Documento Programmatico Pluriennale per la Difesa 2015-2017 and the Military Balance
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AEROSPACE, SECURITY
AND DEFENCE
INDUSTRY
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MAIN COMPANIES AEROSPACE, SECURITY AND DEFENCE– REVENUES 2014*
(billions of euro)**
BOEING
68.4
AIRBUS GROUP
60.7
LOCKHEED MARTIN
34.4
UNITED TECH.
27.0
GENERAL DYNAMICS
23.3
BAE SYSTEMS
20.6
NORTHROP
18.1
RAYTHEON
17.2
FINMECCANICA
12.5
THALES
11.6
US companies
EU companies
Source: elaboration based on data and companies annual report
* Aerospace, Security and Defence domain has been considered
** Official EUR USD and EUR GBP exchange rates from 1/01/2013 to 31/12/2013 (average) from the Central European Bank Website
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MAIN CONNECTIONS AMONG LEADING EUROPEAN COMPANIES - 2014
DASSAULT
33%
THALES
25.3%
67%
TELESPAZIO
THALES ALENIA SPACE
BAE
37.5%
33%
25%
33%
37.5%
AIRBUS
DEFENCE
AND SPACE
100%
AIRBUS GROUP
100%
ALENIA
AERMACCHI
MBDA
42.1%
67%
FINMECCANICA
21%
100%
EUROFIGHTER
46%
100%
50%
AIRBUS
HELICOPTERS
ATR
62.5%
FOKKER
5.5 %
Istituto Affari Internazionali – July 2015
AGUSTA
WESTLAND
50%
NH
32%
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FINMECCANICA’s INTERNATIONAL CONNECTIONS - 2014
FINMECCANICA
50%
25%
ATR
25%
MBDA
67%
SCAC
31.3%
21%
EUROFIGHTER
51%
33%
THALES ALENIA
SPACE
TELESPAZIO
ELETTRONICA
SUPERJET
INTERNATIONAL
BAE Systems
(UK)
AIRBUS GROUP
(France, Germany, Spain)
THALES
(France)
SUKHOI
(Russian Fed.)
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ITALIAN AEROSPACE AND DEFENCE COMPANIES – REVENUES 2013
Secondo Mona
Aerea
Telespazio*
Rheinmentall Italia
Thales Alenia Space Italia*
Vitrociset
Simmel Difesa
WASS*
Elettronica
OTO Melara
Avio Aero
IVECO Defence Vehicles
MBDA Italia*
Selex ES*
Fincantieri
Alenia Aermacchi*
AugustaWestland*
Finmeccanica*
25
38
29
101
357
47
51
65
641
83
174
58
Note: Finmeccanica revenues includes controlled companies (*)
Source: IAI investigation - Data on Italian Aerospace and Defence Industry 2013
DEFENCE
118
TOTAL
257
397
551
1,586
614
495
1,455
1,989
1,126
1,347
3,811
3,343
2,397
4,076
7,952
Istituto Affari Internazionali – July 2015
16,033
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ITALIAN DEFENCE EXPORT 2005-2014
(millions of euro)
Authorizations
Exports
6,000
4,914
5,000
4,000
3,046
3,000
2,192
2,000
2,369
2,754
3,060
2,665
2,726
2,946
2,571
2,979
2,205
1,361
1,522
2,313
2013
2014
1,777
1,000
0
2,906
831
970
2005
2006
1,273
2007
2008
2009
2010
2011
2012
Source: IAI rielaboration
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ITALIAN OVERVIEW
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MINISTRY OF DEFENCE SPENDING 2005-2014
(millions of euro)
External Functions
Pensions
16000
14000
Homeland Security Function
Defence Function
15,408
14,340
14,080
13,639
14,295
14,360
13,613
14,413
14,077
12,107
12000
10000
8000
6000
4,795
,5.271
5,287
5,381
5,529
5,595
5,770
5,893
5,760
5,687
4000
2000
0
289
365
222
115
2005
2006
304
231
100
112
2007
2008
309
116
324
326
151
101
2009 2010
2011
356
100
2012
431
99
2013
449
99
2014
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
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MINISTRY OF DEFENCE SPENDING 2005-2014 AS % OF GDP
Fonte: Documento Programmatico Pluriennale per la Difesa 2015-2017
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DEFENCE FUNCTION SPENDING 2005-2014
(millions of euro)
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
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DEFENCE FUNCTION SPENDING 2005-2014 AS % OF DEFENCE FUNCTION
Investments
80
72.3
70
60
Operation&Maintanance
62.6
58.9
66.7
65.9
65.4
Personnel
70.6
67.2
67.6
59.1
50
40
30
20
22.1
19
15.2
12.5
21.9
15.4
23.6
17.3 20.1
13.7
22.2
12.3
10
24
23.6
18.2
10.1
11.2
2011
2012
22.9
9.2
9.5
2013
2014
0
2005
2006
2007
2008
2009
2010
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
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TOTAL DEFENCE EXPENDITURE 2014
(millions of euro)
Defence
Function
Homeland Security
Function (1)
International
Missions (2)
Ministry of
Economic
Development
(3)
Personnel
9.511
400
366
--
10.277
Operation&Main
tanance
1.345
18
550
--
1.913
Investments and
R&S
3.221
--
2.094
5.315
Total
14.077
916
2.094
17.505
418
Total
Notes:
(1) Estimate based on the share of Carabinieri personnel available for Defence missions, Military Police
(2) Estimate based on historic series: personnel costs 40%, other costs 60%
(3) Estimate based on IAI elaboration of data from interviews
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PROVISIONAL DEFENCE ALLOCATIONS 2015-2017
(millions of euro)
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
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PROVISIONAL DEFENCE FUNCTION ALLOCATIONS 2015-2017
(millions of euro)
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
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ITALIAN INTERNATIONAL MISSIONS 2014 – COST AND PERSONNEL
TOT. DEPLOYED PERSONNEL: 4,574
Total Expenditure
(millions of euro)
International Missions
916.3
Expenditure for main
operations theatres
(millions of euro)
Afghanistan
Balkans (Althea Bosnia, Joint
439
Lebanon
157.7
Balkans
84.2
Indian Ocean and
Horn of Africa
74.8
Mediterranean and
Middle East
37.1
Enterprise ed Eulex Kosovo, NHQSk,
NHQSa): 562
Afghanistan (ISAF,
UNAMA, EUPOL,
EAU/Bahrein/Tampa/Qatar):
Lebanon: 1,110
1,967
Mediterranean and Middle East(Active
Endeavour, Israele/Gaza, Marocco, Egitto, Libia,
Palestina, Iraq, Cipro, Malta, Scorta Marittima
trasporto armi chimiche siriane): 306
Indian Ocean and Horn of Africa
Source: IAI elaboration
based on Documento
Programmatico Pluriennale
per la Difesa 2015-2017,
Servizio Studi della Camera
dei Deputati, Decreti di
ripartizione and Leggi di
Assestamento
Others (Georgia, Sudan-Sud Sudan, Sahel-Mali, India/Pakistan, etc.):
62
Istituto Affari Internazionali – Luglio 2015
(EUTM Somalia, EUCAP NESTOR, Somalia
MIADIT, Gibuti, EUNAVFOR ATALANTA):
567
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