Pedro Sánchez, the Prime Minister of Spain, hosted a luncheon at the Moncloa on Friday attended by chief executives from the country's foremost defense companies.

This select meeting involved six significant leaders from the defense sector, marking a pivotal moment as Spain anticipates a surge in investment destined for these companies in the near future.

The gathering aimed to unify perspectives as the industry prepares for substantial financial influxes planned for the months and years ahead.

The meeting was attended by prominent figures, including Jordi Hereu, the Minister of Industry, who is expected to play a critical role in bolstering defense and security spending.

There are industry calls for the Ministry of Industry to take a more prominent role in managing the funds that the government will allocate to various projects.

Also present were Carlos Cuerpo, the Minister of Economy, and Amparo Valcarce, the Secretary of State for Defense, along with Manuel de la Rocha, the director of the Department of Economic Affairs.

This high-level gathering has been positively received by the companies involved, reflecting the government's commitment to fostering collaboration within the industry.

The executives engaged in discussions included Francisco J. Sánchez, CEO of Airbus; Ángel Escribano, President of Indra; Ricardo Domínguez, President of Navantia; Ibón Aperribay, President of Sapa; Javier Escribano, President of Escribano; and Jorge Sendagorta, CEO of Sener.

Notably absent were representatives from GDELS-Santa Bárbara, a subsidiary of General Dynamics, which Indra has shown interest in acquiring, as well as ITP Aero, among others.

This latest meeting followed a broader gathering held the previous year, which included nearly twenty executives from the defense sector.

Prior to the luncheon, Sánchez met with representatives from security, cybersecurity, and aerospace industries, stating that these sectors are crucial for advancing Spain’s strategic sovereignty.

He emphasized the importance of aligning large companies' projects with the growth of small and medium-sized enterprises (SMEs) to ensure a robust industrial ecosystem.

While Sánchez has underscored the commitment to increasing defense spending, he did not specify how the government plans to approach this escalation, particularly as it awaits clarity on funding from Brussels.

Spain has requested direct transfers, and the government intends to utilize all available mechanisms, including loans through rearmament programs from the European Investment Bank (EIB) and the European Central Bank (ECB).

Importantly, this defense expenditure will not be counted towards the national deficit and is assured not to compete with social spending.