At a time marked by geopolitical tension and the weakening of traditional alliances, the president of the Spanish Banking Association (AEB), Alejandra Kindelán, calls for public-private collaboration in the financing of a key sector such as defense.
During the inauguration of the conference ‘Financing defense: regulatory aspects and compliance’, organized by the Ministry of Economy, Trade and Enterprise, together with the AEB, Kindelán reiterated the commitment of banks to this type of security-critical projects, which have also become a priority for institutions such as the European Council or the European Parliament.
The president of the AEB explained, however, that the reinforcement of defense capabilities by states requires a change of approach. “It is not just a matter of investing more, but of investing better, investing together and doing so on a European scale,” she said.
In his speech, Kindelán pointed out that defense spending could double in the coming years. For this reason, he defends the key role of banking at a time when private financing, together with public investment, are the only ones that can assume these new needs. “The banking sector is willing and able to assume this role, but it needs a regulatory and supervisory framework adapted to the new context, with predictability in capital requirements,” he said.
The need for an adequate framework to respond to the challenges in the area of security, through three channels, has been analyzed in these conferences, in which Julián Conthe, General Director of Trade Policy and Economic Security, Rafael Coloma, Deputy General Director of International Trade of Defense and Dual-use Material, and Manuel Illueca, President of the Official Credit Institute (ICO), among others, have participated.
On the one hand, with adequate export control legislation, since defense and dual-use material continues to be the only area where export licenses are required. On the other hand, with the prevention of illicit activities. And finally, with the role of the ICO and the promotion of instruments that strengthen the financing capacity of companies in the sector.
