Barcelona is at the centre of a clear shift in Catalonia’s stance on defence industry investment, as the Generalitat and major business groups now back a bigger role for the sector. The change comes as Spain raises military spending and European governments rethink security.

Business bodies including Foment del Treball and the Cercle d’Economia have called for more investment in Catalonia’s defence sector. Foment has asked for 20% of Spain’s national defence investment to reach Catalonia, while the Cercle has urged Europe to increase defence spending to keep its global weight.

The political tone has also changed. Salvador Illa summed up the new mood by saying, “For there to be butter, there must be security.” That is a sharp contrast with 2021, when the Generalitat under Pere Aragonès rejected a proposal to use the closing Nissan factory to assemble military vehicles, despite support from unions and the Ministry of Industry.

Spain’s defence budget is set to rise to 2% of GDP, more than 20,000 million euros, with the aim of strengthening domestic industry and reducing dependence on the United States. For Catalonia, that creates a chance to win more contracts, especially in sectors where the region already has strength, such as dual-use technology, cybersecurity and satellites.

Some companies are already moving. Indra announced in Barcelona on 11 May that it wants to raise its Catalan workforce to 5,000 and reach 500 million euros in turnover in the region. Escribano Mechanical & Engineering, through the Escribano brothers, plans to increase purchases from Catalan companies to 39 million euros this year, and Ficosa formed an alliance with Indra in October.

Indra’s leadership also has a strong Catalan link, with Ángel Simón as president and Josep Maria Recasens as executive director. The company has since named Enric Blasco as territorial general director for Catalonia, reporting to Recasens. Even so, public opinion is still cautious, with a May CEO study finding only 26% of Catalans in favour of higher defence investment.

Sector sources say defence is not a quick fix for the wider economy, and that projects take longer than in other industries. But they also say Catalonia still needs a clear industrial plan if it wants to turn its technical base into a bigger defence role. For readers following the wider business picture, see our community coverage and sport coverage for more Barcelona-first reporting.

Originally published by La Vanguardia Catalonia. Read original article. Foment del Treball. Cercle d’Economia.