Spain's proposed 2003 defence budget would liftarmed forces funding by 2.5%, up to €6.5 billion ($6.55 billion), but will do nothing to arrest the slide in defence spending, which would be 0.89% of Spain's gross domestic product - down from 1.24% eight years ago.

The move is intended to support transformation to an all-professional army, modernisation and upgrade of equipment, acquisition of new information and communications systems, rationalisation of force structures and ensuring Spain's role in multinational peacekeeping operations.

The Spanish air force will receive €1.16 billion. Key procurements in 2003 include the first of 87 Euro-fighter Typhoons, two VIP Airbus A310s and Northrop F-5 upgrades.

Procurement funding is up just 1.4% to €1.63 billion, with 55% for upgrades, 32% for maintenance and 12% for research and development (R&D). Not all Spain's military R&D spend is within the defence budget - a proportion is funded by the science and technology ministry. Next year this will be €1.05 billion - 8.4% less than in 2002. Further Typhoon development will receive €272 million, and the Airbus Military A400M €96.5 million.

The defence ministry says the science and technology ministry may help pay for a €1.3 billion purchase of 28 attack helicopters. A decision between Boeing's AH-64D Apache Longbow and Eurocopter's Tiger is pending, although Spain is expected to split its order.

A shortfall in Italy's defence spending allocation means plans to acquire four airborne early warning aircraft and other programmes will be deferred until the 2004 budget. The defence ministry requested €4.5 billion for 2003 but has been granted only €3.4 billion. Other programmes to slip by a year include GPS satellite navigation-equipped precision guided munitions, Aermacchi SF260 elementary trainers, and electro-optical and electronic warfare systems for Alenia/Embraer AMXs. However, provision is made for Italy's contribution to the NATO Air Command and Control System (€8.8 million), Helios (€7 million) and CosmoSkymed (c31 million) surveillance satellites and the Lockheed Martin F-35 Joint Strike Fighter (€107.3 million).

Source: Flight International