Austerity Odds Of Hitting Italian Aerospace

Genoa, Italy - The Italian military officers and other public funds in a difficult environment is expected to air the future of Rome, the newly minted tax reform, which seeks to calm market concerns about their ability to repay the debt.

The impact of individual lines of ministries has not been decided yet, but accelerated to pass a balanced budget and other reform commitments to cut costs in aerospace, defense and security are inevitable. The purpose of the reform package - which includes the welfare cuts and tax increases that could trigger unrest in the labor force - to bring the ratio of government debt to GDP to a more sustainable level.

To raise funds, even Rome can be required to sell its share in some of the industry, "the crown jewel." The destruction of part of its 30% stake in Finmeccanica does not exclude a possible alternative is to reduce the role of a simple Golden Share to protect foreign company acquisitions. However, such a move is seen as unlikely.

Price of the shares of Finmeccanica has fallen dramatically in recent days due to a combination of factors, including disappointing results, the slow progress in streamlining operations and a greater concern in the Italian market. Any provision is unlikely that the share price begins to make the sale financially attractive.

The budget also provides greater pressure to reach the ministries of economic development, research and public education, and transportation. The first payment of research and development, and acquisition of several major platforms - including the Eurofighter Typhoon fighters, Navy FREMM, the army wheeled combat vehicles and military satellites. Research and Ministry of Education provides resources for the financing of the Italian Space Agency and the Department of Transportation is funding most of the Coast Guard.

Squeeze the air has been for some time. Before the most recent move, the government has cut € 5000000000 (7100000000 dollars) of public spending in the budget plan for 2012-14, with the defense in 2012 € 250,000,000 € 413,000,000 in 2013 and further cuts in 2014, was designed for. Ministry of Economic Development has released a total of € 2000000000, although only a small percentage would have been able to beat the aerospace and defense. The Ministry is looking at the order € 400000000 R & D support programs, money that has been approved, but not reserved.

The Defense Department has yet to detail how it will deal with the budget crisis, and a message about this strategy could be presented to Parliament in late September. This date may slip if the new cost adjustments must be incorporated into the plan.

So far, the Ministry of Defence tried to absorb the cuts without sacrificing major purchases or cut staff. But with the operations and maintenance accounts already overburdened, to shorten the financing of modernization can be seen as one tool the department to reduce costs, especially if there is a continuous political pressure not to cut staff in uniform or civilians.

Deductions were made operational. The commitment to the NATO operation against Libya, Italy to replace its smaller carrier deck amphibious aircraft (Harrier fleet is no longer in operation), when the Air Force was added to the AMX ' F-16, hurricanes, tornadoes, and flies. These activities will help to reduce operations focus on the entire year for less than € 1.8-2000000000 prognosis.