Defence Forum

Defence industry, Crosetto: 'It's expensive, it's slow. First they saw the money, then they gave the camel. Now we need a cultural change'

Conference in Rome on defence and security in an unstable world. Focus on emerging domains, between space and underwater

by Andrea Carli

Il ministro della Difesa Guido Crosetto durante la prima edizione del “Forum Difesa”, l’iniziativa promossa da Bruno Vespa e Comin & Partners in collaborazione con l’Istituto Affari Internazionali (IAI)

7' min read

Translated by AI
Versione italiana

7' min read

Translated by AI
Versione italiana

In a context where security threats take shape with extreme speed, with the consequence that responses and reactions need to be deployed very quickly, the defence industry is called upon to provide adequate tools in the shortest possible time. "Italian defence has one of the highest levels of technology in the world. But it has all the shortcomings of all defence industries in the world," stressed Defence Minister Guido Crosetto, speaking on Thursday 29 January in Rome, at Palazzo Sciarra Colonna, at the first edition of the Forum Difesa, the initiative promoted by Bruno Vespa and Comin & Partners in collaboration with the Istituto Affari Internazionali (IAI).

Crosetto: 'Italy's defence industry is expensive, and slow'

"It is expensive, it is slow,' explained Crosetto. 'It is used to building, to working for an Italy, for the Armed Forces that could plan for a very long time, that were not in a hurry to receive means, and even if they received them a year later in the end it changed little, while now we are faced with the need to have the parts in time, to have parts that cost less and less, that are always more technologically advanced'. The consequence of the minister's reasoning is that 'now there will be a need to change pace' and, Crosetto stressed, 'it is accelerating. The CEO of Fincantieri, Folgiero has built changes to double production within a year, it has already increased by 40%, the same is being done by Mbda and Leonardo. All companies are doing it, I repeat with the difficulties they have'.

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The minister: 'The mentality must change'

In short, Crosetto sent a clear message. Defence companies 'must change their mentality. They used to see the money, and then give the camel. Whereas private companies normally first make the camel, and then try to sell it, and take the money. Now a cultural change is needed. When scenarios change, there is no one faster than the Italians to adapt to the new scenarios. The Germans are much better than us when it comes to standardising production'.

Valensise: 'There is a need to talk about defence in realistic terms'

The meeting provided an opportunity for a discussion between institutions, companies and experts on the subject of the relaunch of defence, starting with industry and technology at the service of new geopolitical challenges. "We are tempted by a nostalgic approach to a world in which we lived for eighty years, but today this world no longer exists: we must equip ourselves to deal with a world that is, at least in part, new," began Iai president Michele Valensise. "There is a need to talk about defence in realistic terms: not just weapons and tanks, but space, satellites, energy networks. This is a fundamental step that has to do with the security of our continent. Today,' added Valensise, 'the threats are no longer hypothetical, the stuff of library researchers, but are real'. At this point, 'the imperative is to bring all aspects together: the European and the Atlantic Alliance. The European pillar must be strengthened in synergy with the US'. Alessandro Marrone, head of the Defence, Security and Space programme at the Istituto Affari Internazionali, pointed out that 'trusting the US, and therefore NATO, less does not automatically mean moving towards a European defence policy'.

Annunziata: "The war between Russia and Ukraine a laboratory of how new technologies intertwine with the traditional ones"

Gianfranco Annunziata, Chief of General Counsel to the Chief of Defence Staff, highlighted the problem of integration between emerging and traditional technologies. "The war between Russia and Ukraine," he said, "is for us a laboratory of how new technologies are intertwined with traditional ones. The Ukrainians are integrating a traditional capability with new technologies: this is the case with drones. At present they are the best at it. Naval drones have hit the Russian fleet heavily in the Black Sea', On the land front, the pattern is that of 'small units moving supported by drones. The front line becomes wider, more porous. Drones make it possible to deploy fewer men, which is crucial for the Ukrainians'.

Cascio: 'Strengthening the European defence pillar within the NATO framework'

According to Antonino Cascio, Central Director for Strategic and Global Issues Ministry of Foreign Affairs and International Cooperation, 'there is no contradiction between NATO and the EU. Italy,' he recalled, 'was a founding country in both cases'. In reality, 'it is a matter of taking note of changes that are taking place, starting with the fact that our main ally is developing a change of vision. We need to strengthen the European defence pillar within the NATO framework. We cannot do without the Atlantic Alliance, but we must build ourselves the tools that enable us to face certain challenges independently. Italy,' Cascio concluded, 'has a great defence industry. However, a policy that is only national is unthinkable. The path is that of collaborations with strategic allies, as in the case of the Gcap (the sixth-generation fighter project that, in addition to Italy, involves Japan and the United Kingdom, ed.) and joint ventures, such as the one between Leonardo and Rheinmentall'.

Mannino: 'The US will not let us down'

Stefano Mannino, President of the Centro Alti Studi per la Difesa, recalled that 'Trump is using the strategy of "shock diplomacy": this is what he did with tariffs and Greenland. The US,' he assured, 'will not go away, they will not give up on us. At the military-technical level,' he added, 'nothing has changed. The US authorities only require a greater willingness on the part of the allies'.

Benigni: 'We are at the heart of hybrid warfare, the difference between civil and military has blurred'

Domitilla Benigni, CEO & COO Elt Group, emphasised that 'the scenario has changed. We are at the centre of hybrid warfare. Today the difference between civil and military is much more blurred. We,' he explained, 'develop systems that allow us to ensure superiority in this invisible battlefield that is the electromagnetic spectrum. Today,' Benigni continued, 'not only a platform is threatened, but its entire chain of command and control'. Moreover, 'hybrid warfare can also be done by non-rich nations: defence costs more, much more than attack. Huge investments are needed. In Italy we have to invest a lot in our skills: there is still a lot to be done'. 'Today,' he continued, 'hybrid warfare and the multidimensionality of threats represent a central challenge for national security and the resilience of strategic infrastructures, as Minister Crosetto's non-paper also underlined. In this context, the management of the electromagnetic spectrum, the strategic environment in which electronic defence and attack activities take place, plays a key role. The current conflicts show that whoever governs the electromagnetic spectrum, governs information and thus gains superiority on the battlefield. We therefore consider it crucial that companies and institutions work together on the integration of electronic and cyber defence, two of the areas on which Europe is lagging behind the goal of achieving strategic autonomy. We are therefore ready to collaborate with the institutions to strengthen the capacity to respond to hybrid threats and support the growth of new specialised figures that are essential for the security of the country'.

Catalano: "Today those on board the combat vehicle do not see the drone coming"

Claudio Catalano, CEO Iveco Defence Vehicles, emphasised the speed factor. "We had to develop technologies quickly to defend the vehicles. Today the threat is also from above, and comes from drones. Today, whoever is on board the combat vehicle does not see the drone coming. We therefore tried to develop the autonomous ground vehicle branch: it is an autonomous vehicle that follows the combat vehicle, and assists it with a series of technologies to protect it from the new threats."

Cossiga: 'Industry will be able to change faster than administration'

The Italian defence industry has so far worked slowly but will change and will do so more quickly than the administration and ministries. This was said Giuseppe Cossiga, president of AIAD and Mbda Italia, commenting on Minister Crosetto's words on the industry's slowness. Mbda Italia is the Italian subsidiary of the joint venture between Leonardo, Bae Systems and Airbus. Until now, the Italian defence industry has worked like a tailor-made tailor, with a 'customer-principal' who paid well and was willing to wait,' he explained. 'Now the customer changes and the industry will change, but the industry will be quicker to change than the administration. "Mbda Italia has already increased the production of the main missile systems by 50%,' he explained, 'it is launching new production lines and is growing in terms of people, plants, and production capacity'; in terms of personnel, 'we have greatly exceeded 2,500 units and by now we see a quota of 3,000, but if the prospects we have been given are realised, we consider ourselves a company projected towards 4,000 in Italy'. These increases, added Cossiga, will lead Mbda Italia not only to reach the 25% share in the group, which corresponds to Leonardo's share, but to exceed it. When it all started Italy did not have the capacity to reach 25% so it allocated assets and put in cash. Then we grew and today we have reached and surpassed 25% of the group's turnover, we are close to 25% of the staff and close to occupying the place that the creators of Mbda had identified for Italy more than 20 years ago".

Salamone: "Space economy in strong growth, Italy in third place for contributions to Esa"

A second panel focused on Italy's role in emerging domains, including space and diving. Luca Vincenzo Maria Salamone, Director General of the Italian Space Agency, recalled that 'the space economy is a fast-growing sector, worth over USD 600 billion. On a global level, players such as the USA and China are growing with very important numbers, as demonstrated, in the former case, by the launch of the Starlink satellites. The financial part of the space sector is going to the private sector, as Elon Musk demonstrates. In China, too, there is an opening towards private entities, but strategic technologies still remain under state control. Italy is the third largest contributor to the ESA, with €3.5 billion over the next three years. The problem is regulatory and industrial fragmentation'.

Folgiero: 'Fincantieri works to put Safe in the EU to good use'

"There is a competition of various instruments that finance Defence investments. What is important is that Italy's development programmes are covered by these allocations," said Fincantieri CEO Pierroberto Folgiero on the sidelines of the Defence Forum in Rome, speaking of the Safe funds. "The most interesting thing," he added, "is that Fincantieri is working to put to good use the Safe of the other nations that have naval base increase programmes in Europe. We are showing ourselves to be a player in Europe that facilitates collaboration between nations, thus working on the Safe not only in Italy but also internationally,' concluded the CEO. Today, more than ever, the defence game is played as a team.

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