The high rate of cyber-attacks puts emphasis on cyber security to improve corporate and national defense

Wednesday 18 July 2012, Amsterdam

Irish defense expenditure declined at a CAGR of -2.78% during the review period to reach a value of US$1.28 bn in 2011. The country’s military expenditure is estimated to register a CAGR of -0.25% during the forecast period, and to value US$1.22 bn by 2016. Defense expenditure is expected to be driven by factors such as overseas peace support, crisis management, and humanitarian operations. As a percentage of gross domestic product (GDP), the Irish defense budget stood at 0.57% in 2011 and is expected to decline to 0.46% of GDP by 2016, largely due to the expected increase in GDP and reduction in defense expenditure (reference see graph).

In 2011 Ireland had a defense budget of US$1.3 bn and invests just 0.6% of its GDP in defense. This is small in comparison with the UK and France, which spend 2.3% and 2.1%, respectively, of their GDP on defense. In addition, Ireland’s defense budget is expected to decline further in the forecast period. In the Irish defense industry, with small companies with little specialization in weapon categories, foreign weapon suppliers face infrastructure challenges in entering the market.

Ireland is a member of the EDA, which was formed to improve European defense capabilities and to create a single defense equipment market. Consequently, the Irish government gives preference to European countries for the import of defense equipment. The EU issued a directive in 2009 which simplified the terms and conditions of transfers of defense products within the EU and coordinated procedures for the award of defense contracts. This acts as a barrier for non–EU companies trying to enter into the Irish defense market.