|
From Bad to Worse
Finmeccanica's mad dash to increase its business outside Italy is driven largely by need, and the incentive may just become even greater as Rome mulls over further cuts to the defense budget.
If such cuts were implemented it would be "a very bitter pill to swallow," says Finmeccanica CEO Pier Francesco Guarguaglini. Italy already spends far less than other countries on defense in relation to its gross domestic product, a factor that will now be exacerbated. The latest moves would drive spending on defense to below 1% of GDP.
"This will create a great deal of difficulty," Guarguaglini pronounces.
Little wonder, then, he's turning the company to focus on the United States. Guarguaglini projects the U.S. will account for 47% of defense spending in 2011, up from 37%, while Europe's share will decline to 15% from 19%.
back
to ShowNews home
|
