DEFENCE BUDGETS AND INDUSTRY:
TABLES AND GRAPHS
Roberta Maldacea, Alessandro Marrone, Paola Sartori
July 2015
Ø
GENERAL OVERVIEW
Ø
AEROSPACE, SECURITY AND DEFENCE
INDUSTRY
COMPARISON EU-US: Procurement and R&D 2013
(billions of euro)*
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))
0
20
40
60
80
100
120
140
160
US
European Union
89
30
52
7.5
R&D**
Procurement
TOT 141
TOT 37.5
EUROPEAN SPENDING FOR DEFENCE FUNCTION* 2013
(billions of euro)
*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
0
5
10
15
20
25
30
35
40
45
UK
Germany
France
Italy
43.9
33.3
31.4
14.4
EUROPEAN SPENDING FOR DEFENCE FUNCTION AS % OF GDP 2013
RATIO DEFENCE FUNCTION SPENDING/MILITARY PERSONNEL 2013
Istituto Affari Internazionali – July 2015
(thousands of euro)
Source: IAI elaboration based on Documento Programmatico Pluriennale per la Difesa 2015-2017 and the Military Balance
0
50
100
150
200
250
300
UK
Germany
France
Italy
260
178
141
82
AEROSPACE, SECURITY
AND DEFENCE
9
(billions of euro)**
MAIN COMPANIES AEROSPACE, SECURITY AND DEFENCE– REVENUES 2014*
11.6
12.5
17.2
18.1
20.6
23.3
27.0
34.4
60.7
68.4
THALES
FINMECCANICA
RAYTHEON
NORTHROP
BAE SYSTEMS
GENERAL DYNAMICS
UNITED TECH.
LOCKHEED MARTIN
AIRBUS GROUP
BOEING
US companies
EU companies
Source: elaboration based on data and companies annual report
* Aerospace, Security and Defence domain has been considered
MAIN CONNECTIONS AMONG LEADING EUROPEAN COMPANIES - 2014
THALES
BAE
FINMECCANICA
AIRBUS
HELICOPTERS
AIRBUS
DEFENCE
AND SPACE
AIRBUS GROUP
MBDA
ALENIA
AERMACCHI
EUROFIGHTER
TELESPAZIO
THALES ALENIA SPACE
AGUSTA
WESTLAND
ATR
NH
37.5%
37.5%
25%
100%
100%
100%
100%
33%
33%
33%
67%
67%
21%
50%
50%
62.5%
32%
25.3%
46%
DASSAULT
42.1%
5.5 %
FOKKER
FINMECCANICA’s INTERNATIONAL CONNECTIONS - 2014
THALES
(France)
SUKHOI
(Russian Fed.)
BAE Systems
(UK)
ATR
MBDA
EUROFIGHTER
SCAC
SUPERJET
INTERNATIONAL
ELETTRONICA
TELESPAZIO
THALES ALENIA
SPACE
FINMECCANICA
AIRBUS GROUP
(France, Germany, Spain)
50%
25%
25%
21%
51%
31.3%
67%
33%
ITALIAN AEROSPACE AND DEFENCE COMPANIES – REVENUES 2013
16,033
4,076
3,343
3,811
1,989
1,586
174
641
51
357
38
7,952
2,397
1,347
1,126
1,455
495
614
551
397
257
118
58
83
65
47
101
29
25
Finmeccanica*
AugustaWestland*
Alenia Aermacchi*
Fincantieri
Selex ES*
MBDA Italia*
IVECO Defence Vehicles
Avio Aero
OTO Melara
Elettronica
WASS*
Simmel Difesa
Vitrociset
Thales Alenia Space Italia*
Rheinmentall Italia
Telespazio*
Aerea
Secondo Mona
DEFENCE
TOTAL
Note: Finmeccanica revenues includes controlled companies (*)
ITALIAN DEFENCE EXPORT
2005-2014
Istituto Affari Internazionali – July 2015
Source: IAI rielaboration
1,361
2,192
2,369
3,046
4,914
2,906
3,060
2,726
1,522
2,313
831
970
1,273
1,777
2,205
2,754
2,665
2,979
2,571
2,946
0
1,000
2,000
3,000
4,000
5,000
6,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Authorizations
Exports
(millions of euro)
MINISTRY OF DEFENCE SPENDING 2005-2014
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
(millions of euro)
0
2000
4000
6000
8000
10000
12000
14000
16000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
222
365
115
289
100
304
112
231
116
309
151
324
101
326
100
356
99
431
99
449
4,795
,5.271
5,287
5,381
5,529
5,595
5,770
5,893
5,760
5,687
13,639
12,107
14,080
15,408
14,340 14,295
14,360
13,613
14,413 14,077
MINISTRY OF DEFENCE SPENDING 2005-2014 AS % OF GDP
DEFENCE FUNCTION SPENDING 2005-2014
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
DEFENCE FUNCTION SPENDING 2005-2014 AS % OF DEFENCE FUNCTION
0
10
20
30
40
50
60
70
80
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
19
12.5
21.9
23.6
20.1
22.2
24
18.2
23.6
22.9
22.1
15.2
15.4
17.3
13.7
12.3
10.1
11.2
9.2
9.5
58.9
72.3
62.6
59.1
66.7
65.4
65.9
70.6
67.2
67.6
Investments
Operation&Maintanance
Personnel
TOTAL DEFENCE EXPENDITURE 2014
Defence
Function
Homeland Security
Function (1)
International
Missions (2)
Ministry of
Economic
Development
(3)
Total
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
418
916
2.094
17.505
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
PROVISIONAL DEFENCE ALLOCATIONS 2015-2017
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
PROVISIONAL DEFENCE FUNCTION ALLOCATIONS 2015-2017
Source: Documento Programmatico Pluriennale per la Difesa 2015-2017
ITALIAN INTERNATIONAL MISSIONS 2014 – COST AND PERSONNEL
Expenditure for main
operations theatres
(millions of euro)
Afghanistan
439
Lebanon
157.7
Balkans
84.2
Indian Ocean and
Horn of Africa
74.8
Mediterranean and
Middle East
37.1
Balkans
(Althea Bosnia, JointEnterprise ed Eulex Kosovo, NHQSk, NHQSa): 562
Lebanon: 1,110
Indian Ocean and Horn of Africa
(EUTM Somalia, EUCAP NESTOR, Somalia MIADIT, Gibuti, EUNAVFOR ATALANTA):
567
Afghanistan (ISAF,
UNAMA, EUPOL,EAU/Bahrein/Tampa/Qatar):
1,967
Mediterranean and Middle East(Active Endeavour, Israele/Gaza, Marocco, Egitto, Libia, Palestina, Iraq, Cipro, Malta, Scorta Marittima trasporto armi chimiche siriane):306
Others
(Georgia, Sudan-Sud Sudan, Sahel-Mali, India/Pakistan, etc.):62
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
TOT. DEPLOYED PERSONNEL: 4,574
Total Expenditure
(millions of euro)
