The chief economist of BBVA Group and director of BBVA Research, Jorge Sicilia, considers that, after the cancellation of the new European fighter jet project, national positions continue to weigh on the defense debate, although he is confident that other attractive areas will emerge to channel investment.
In a press conference to present the latest forecast report, Sicilia indicated that it was already foreseen that it would be difficult to reach an agreement on the development of a European fighter jet (the FCAS, Future Combat Air System), due to the differences between Germany and France.
"National positions continue to dominate the defense debate and this leads to an assessment that there are many issues to be resolved," said the chief economist of BBVA Group.
In his opinion, the fiscal capacity to assume an increase in military spending is not homogeneous among the member states, due to the different starting situations of countries like Germany or France compared to others closer to Russia, such as Poland, which show a greater willingness to reinforce these items.
In any case, the director of BBVA Research has stressed that within the military industry itself there were many agents who doubted that the problem of defense spending in the EU would be resolved solely with the FCAS. "Investment in defense will continue and other places will be found to invest that spending," Sicilia remarked.
For BBVA Research, the increase in the defense budget opens a window of opportunity for Spanish companies that manage to position themselves. Experts point out that the increase in military spending in Spain, supported by new commitments with NATO and the European autonomy agenda, will generate economic impacts that will go beyond the classic arms industry.