Key Benefits:
The purpose of this royal decree is to grant an extraordinary credit in the Ministry of Defense's budget to pay for the payment of obligations under special programs armament, for deliveries already made.
The special weapons programs are those that, both because of their economic volume and because of the industrial and technological complexity they pose, represent the most important acquisitions of weapons systems that the Ministry of Defense. These programs contribute decisively to
-The modernization of the Armed Forces and its empowerment for participation in international missions in which Spain is deployed with allied countries.
-Development of the Spanish industrial fabric with a high technological component, with options to compete in international markets to export these capacities.
-Generation of high value jobs and training with important technology transfers to civilian sectors.
-International industrial cooperation.
The financing of these programs is carried out jointly between the Ministry of Industry, Energy and Tourism and the Ministry of Defense according to a financing model designed at the end of the 1990s. There are currently 19 special weapons programs whose funding amounts and profiles were last updated in 2009 by establishing a financing profile until 2025.
During the financial years 2010 and 2011, there were reductions and no budgetary availabilities that resulted in the non-attention of the payment commitments approved for those years, although the corresponding registration was made in National Accounts for the deliveries made. As a result, this extraordinary credit has no impact on the public deficit.
In view of the inability to meet the payment commitments associated with these Programs, the Ministry of Defense requests an extraordinary amount of credit amounting to 1,782,770,890 euros to cover its obligations with the national industry and international consortia derived from special arms programmes.
At the same time, the Ministry of Defense is firmly committed to reducing long-term and medium-term commitments. For this purpose, it has designed a plan of actions that includes the reduction of units, deferrals of deliveries, renegotiations of conditions and sale of material. In order to implement this extraordinary credit, it is necessary to strengthen the image of Spain as a reliable partner in international consortiums and allow the industries to deal with global agreements with Future industrial feasibility plans.
The consequences of non-attention to payment commitments would be as follows:
-Loss of highly skilled jobs and the export capacity of our industry.
-Financial collapse of the international programs and consequent deterioration of the image of Spain.
-Limitation of our ability to participate in international missions.
The requirement to pay for obligations that must be met by the Administration and the need not to delay its payment in order not to cause harm to the third parties, constitute the reasons for extraordinary and urgent need to justify the granting of extraordinary credit by means of law.
In its virtue, making use of the authorization contained in article 86 of the Spanish Constitution, on the proposal of the Minister of Finance and Public Administrations, according to the State Council and prior deliberation of the Council of Ministers at its meeting on 7 September 2012,
DISPONGO:
Article 1. Grant of extraordinary credit in the Ministry of Defense Budget.
An extraordinary appropriation is authorised for the current budget of Section 14 "Ministry of Defence", Service 03 "Secretary of State for Defence", Programme 122B "Special Programmes for Modernisation", Chapter 6 " Investments Real ", Article 65" Military investments and infrastructure and other goods ", Concept 659" To pay for the payment of obligations corresponding to Special Programs of armaments for deliveries already made ", for an amount of 1,782,770,890 euros, with the following detail:
Naming | Amount (in | |
---|---|---|
659.01 | Avion EF-2000 | 1.171.607.690 |
659.02 | Tiger Helicopter | 76.267.140 |
659.03 | Obus 155/52 | 16.065.970 |
659.04 | Mysil SPYKE | 27.824.410 |
659.05 | BAM Buque | 187.800,000 |
659.06 | Carro c. LEOPARD | 242.337.280 |
659.07 | Missile IRIS-T | 38.968.560 |
659.08 | UME Helicopter | 21.181.310 |
659.09 | CIS UME Systems | 718,530 |
| Total | 1.782.770.890 |
Article 2. Financing of extraordinary credit.
The extraordinary credit granted by this royal decree-law in the Ministry of Defense Budget will be financed with Public Debt.
Single end disposition. Entry into force.
This royal decree-law will enter into force on the day of its publication in the "Official State Gazette".
Given in Madrid, on September 7, 2012.
JOHN CARLOS R.
The President of the Government,
MARIANO RAJOY BREY