European Defense Fund, 1.2 billion for 60 projects
Sixty projects supported with 1.2 billion of European funds, five of which with an Italian guideand involving over 156 Italian subjects. Money from European Defense Fundan €8 billion investment program for the period 2021-2027, designed to finance collaborative military research and the development of advanced technologies and equipment, including artificial intelligence, defense telecommunications and systems to intercept hypersonic missiles.
The framework is that of the European Defense Action Plan, launched in 2018, when the war between Russia and Ukraine was not topical. For 2021 the allocation is 1.2 billion and concerns 60 selected proposals, among the 134 received. Italy – between companies, universities, start-ups and research centers – stands out: 156 subjects involved, fewer than just France (178) but more than Spain (147), Germany (113) and Greece (75).
Leonardo the most involved
The Italian companies involved are different, both listed and unlisted. The most present in the projects is Leonardo, directly involved in over 15 projects. The most relevant is “Arturo”, destined to develop new capabilities in the radar sector in three years and coordinated by the company led by Alessandro Profumo. “Arturo” is entirely financed by Europe with 19 million euros.
On Arturo, together with Leonardo, 11 countries and 25 partners compete including the national inter-university consortium for telecommunications, the University of Pavia, the Italian branch of the German Rheinmetall.
The change of pace of European countries on defense and security was underlined by Profumo himself: “There is a very evident change of mentality, at least in Europe, on defence, which is incredibly important”. The consensus collected by Bloomberg on Leonardo records 16 Buys, 1 Neutral, 1 Sell, with an average target price of 12.0 euros. Websim-Intermonte has a fundamental rating of Interesting (Outperform) and a target price of 11.0 euros. Leonardo closed Friday’s session at 10.47 euros, up 0.24%.
Fincantieri leads a 65 million project
The project that receives the most European funds is “Epc”, which aims to develop an innovative European corvette for patrolling the seas in two years. Leading an industrial consortium of 14 realities is Naviris, a joint venture between Fincantieri and the French Naval Group. A project worth 65 million euros and which is supported with 60 million euros by Europe.
Fincantieri is also involved in the project “European Digital Naval Foundation”, which will enable the integration of a joint naval operational cloud as a component into the broader military multi-domain operational cloud, supporting the design and creation of next-generation intelligent ships. A project led by Navantia and financed for 29 million by Europe.
The other projects and the other big Italian companies involved
Another Italian-led project is “Neumann”, which in four years has the objective of developing new air propulsion systems for military fighters. The investment requires 56 million euros, 48 of which is provided by Europe. At the head there Airplanewhich deals with components for the aeronautical sector.
The last two Italian-led programs are “Mosaic“, for monitoring and warning of chemical and biological threats (4.4 million received) and “Naucrates” for the design of a microsatellite invisible to terrestrial surveillance systems (5 million). The two projects are led respectively by Safe Foundation e On Air Consulting&Solutions.
But there are other large realities located in Italy that are involved in the projects that will be financed by the European Union. From the Italian branch of Thales – French group specializing in aerospace, defense and security -, Thales Alenia Space – joint venture between Thales and Leonardo – e Telespazio, a joint venture between Leonardo and Thales. Also involved Electronics Spa – among the European leaders in the production of Electronic Defense equipment – e Iveco. Without forgetting the Italian branches of mbda e Rheinmetall.