Changes in the defense business
Who manufactures weapons in Spain? The European consortium Airbus, Navantia (a state-owned company), Indra, GDELS-Santa Bárbara Sistemas, Expal, and ITP Aero. These are the major players in the Spanish military industry, which, as in most countries, concentrates the bulk of the business in the hands of a few. Specifically, these six companies control 80% of the market. In Catalonia, only Indra has a presence: it has up to 12 facilities spread across the region, with 3,500 employees. Indra, an IBEX 35 company headquartered in Madrid, has made significant progress in recent years, ever since the Sánchez government assigned it the role of "national coordinator" in the program to replace the Eurofighter aircraft in 2019. In 2020, Marc Murtra, from the Socialist Party, arrived as non-executive chairman—he is now executive chairman of Telefónica. With 28% of the share capital, the State is Indra's largest shareholder. Murtra's predecessor was Fernando Abril-Martorell, a member of the People's Party (PP). The current CEO is Ángel Escribano: Escribano Mechanical & Engineering (EM&E Group) is Indra's second-largest shareholder, with 14.3%. The other major shareholders are the Basque company SAPA (7.9%) and the Amber fund (7.3%), the main owner of Prisa. In 2024, Indra's profit increased by 35% compared to the previous year, reaching €278 million.
The war in Ukraine has brought about a paradigm shift, marked by Europe's need and aspiration to regain military autonomy from Trump's US, which no longer wishes to exercise the Atlanticist tutelage established after World War II. Under pressure from Trump, the EU has launched an €80 billion plan, in line with Washington's demands, via NATO, that each country allocate 5% of its GDP to military spending. Only Spain has agreed to the exception of remaining at 2.1% of GDPDespite the flurry of figures and concepts, nominally, in 2025, it reached 2%: €10.471 billion. Of this, in a single day, the Sánchez administration approved €6.9 billion, and, remarkably, Indra, alone and in collaboration with other companies, had access to almost all of it: €6.327 billion.
This raises a question with an equally dubious consequence. If, to whatever extent it may be—Spain is investing less than its European partners—it is necessary to invest in weaponry to ensure the defense of Ukraine and the future of the continent itself, it is better to do so in our own industry than in the American one, which is precisely what Trump wants. Europe has some giants in the sector, such as Leonardo and Thales Group, next to which Indra is still a small company. The Moncloa Palace is helping Indra grow. Agreed. But we must be careful: we are talking about public money and a public opinion that, due to tradition and historical experience, is averse to militarism. Therefore, in the spirit of transparency and to avoid generating further gratuitous backlash, it is important to maintain appearances. The general interest (ensuring European defense) cannot be used to favor private interests, in this case, those of the Escribano brothers. Ángel Escribano, president of Indra, is pushing for the acquisition of EM&E, which he co-owns with his brother Javier. Strategically and from a business perspective, this may make sense, but there is a clear conflict of interest.