Media Release
Contact: Mandy Castle
IHS Jane’s Public Relations Manager
+44 (0) 208 700 3745
amanda.castle@janes.com
Defence Spending Falls by Almost $4 Billion in 2009, Jane’s Industry Quarterly Reports
Ever Closer Union: The Outlook for a European Defence Industrial Base
LONDON (28th July 2009) – Defence spending across Europe will have fallen by almost USD4 billion (1.3 %) by the end of 2009 as the financial downturn bites, Jane’s Industry Quarterly analysts have concluded.
The Czech Republic, Estonia, Finland, France, Germany, Greece, Italy, Latvia, Lithuania, Poland and Spain are all expected to see declines in military spending during the current calendar year.
The United Kingdom announced the strongest nominal rise of all European countries in 2009: defence spending overall climbed USD 1.4 billion to USD 75.75 billion.
Overall, defence spending of European nations will fall to USD 302.56 billion in 2009: down from USD306.54 billion in 2008. IHS Jane's forecasts that the combined military budgets of the continent will then bounce back; increasing 7.75 % to USD 326 billion by 2013 (please see attached tables for individual country figures).
Tough times lie ahead for Europe’s defence industries, however, as procurement budgets are expected to decrease by 4% in 2009 to USD 52.89 billion (2008: USD 53.15 billion). This is due to shifting national priorities towards preserving jobs and maintaining current capabilities at the expense of investment in new programmes.
The economic situation facing European nations and the impact on budgets is examined in the latest Jane’s Industry Quarterly – “Ever Closer Union: The Outlook for a European Defence Industrial Base.”
The study highlights the dysfunctional nature of Europe’s defence industrial base and the fractured markets.
Guy Anderson, editor and lead analyst, explains, “It is misleading to speak of either a European defence industry or a true European defence market. Neither exists as of 2009”.
Jane’s Industry Quarterly considers the potential for the development of a unified European defence industry and market, and for the removal of the barriers which have allowed the military and security sectors to remain apart from the free market rules of Europe.
“ Europe is facing factors that may bring about lasting change. These range from legislative reform, which is edging its way to national statue books, to the new realities of tighter spending in an era of relative austerity,” Anderson concluded.
To join Jane’s Industry Quarterly webcast, discussing this report, 29 th July 2009, please register at:
http://www.janes.com/events/OnlineSeminars/EverCloserUnion/index.html
This web cast is free to media, just select ‘none’ when asked for payment type.
IHS Jane’s is an IHS (NYSE: IHS) company.
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To see the full report or to interview the Guy Anderson, editor Jane’s Industry Quarterly, or Fenella McGerty , IHS Jane’s defence economics analyst, please contact Mandy Castle, senior manager public relations IHS Jane’s, (contact details at top of page).
About IHS Jane’s (www.janes.com)
IHS Jane's is the leading open source information provider and conference organiser on defence, international risk and national security to governments, militaries, industries and academia around the globe. 2009 is the 100 th anniversary of Jane’s All The Worlds Aircraft. IHS Jane’s, an IHS (NYSE: IHS) company, is headquartered in London, and also has offices in Alexandria, Virginia; Singapore; Tokyo; Dubai; and Sydney, Australia.
About IHS ( www.ihs.com)
IHS (NYSE: IHS) is a leading global source of critical information and insight, dedicated to providing the most complete and trusted information and expertise. IHS product and service solutions span four areas of information that encompass the most important concerns facing global business today: Energy, Product Lifecycle, Security, and Environment all supported by Macroeconomics. By focusing on customers first, IHS enables innovative and successful decision-making for customers ranging from governments and multinational companies to smaller companies and technical professionals in more than 180 countries. IHS is celebrating its 50th anniversary in 2009 and employs approximately 3,800 people in 20 countries.
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