- In the part of the report dedicated to the growth scenario, a contribution of 90 billion in terms of gross domestic product is highlighted
- The program supports more than 98.000 jobs each year
- Further investments are required to ensure national sovereignty and to achieve even greater economic benefits
An independent report published today by Strategy&, part of the PwC network, revealed that the Eurofighter Typhoon fighter aircraft program has contributed very significantly to the economies of several countries in Europe.
The report examines in detail the broad spectrum of development, manufacturing and technical support activities in the four partner countries: UK, Germany, Italy and Spain.
The report provides a comprehensive analysis of the program producing compelling data on current economic benefits with a particular focus on the next ten years.
The part dedicated to a basic scenario takes into consideration the orders for new Eurofighter Typhoons in Spain (Halcon I and II programmes) and in Germany (Quadriga programme). This scenario demonstrates that over the next decade the program is expected to contribute €58 billion to the gross domestic product of the four partner countries, generate fiscal returns of €14 billion for their respective governments and support 62.700 jobs each year.
These numbers increase significantly in the part of the report dedicated to the growth scenario with sales opportunities for around 200 Eurofighter Typhoons on domestic and export markets.
This scenario shows for the next decade a contribution of 90 billion euros in terms of gross domestic product, fiscal returns of 22 billion euros and over 98.000 jobs every year. The benefits deriving from future export opportunities would translate into fiscal returns for partner countries equal to approximately 30% of their investments.
Giancarlo Mezzanatto, CEO of Eurofighter, said: “The vital role played by the Typhoon in keeping the skies of Europe safe is known to all, however we are often not fully aware of the incredible economic benefits resulting from the programme. It directly strengthens the economies of several European countries and supports tens of thousands of vital aerospace jobs – benefiting the communities where we live and work. Furthermore, there are significant effects in the regions where the production lines are located and where the program often supports small and medium-sized enterprises, start-ups and training areas. For this reason, further orders for new Eurofighter Typhoons are essential, in order to support and maintain the related industrial production capabilities in the defense field in Europe. This will guarantee national and European technological independence as well as resilience of industrial know-how for partner countries in the long term."
Further data published in the report shows that over the entire life cycle of a single Eurofighter Typhoon aircraft, the contribution to the four partner countries is 407 million in terms of gross domestic product and 100 million in taxes.
Mezzanatto added: ”The Eurofighter Typhoon program boasts over 400 suppliers who play a crucial role in providing research and development, design, manufacturing and technical support services. Continued investment in the program will not only keep the aircraft operationally effective but also help make the defense and aerospace industry even stronger. They will also be an essential enabler for the development of the next generation air combat system in Europe."
The partner companies of the Eurofighter program – Airbus, BAE Systems and Leonardo – have recognized the benefits illustrated in the Strategy& study.
Jean-Brice Dumont, Head of Air Power at Airbus Defense and Space, said: “Eurofighter is undoubtedly Europe's great industrial and military project. A lively program, taking into account the contracts signed with Germany (38 new aircraft at Tranche 4 standard) and with Spain (additional 20 units). Airbus stands ready to maintain the capabilities and tools to produce further aircraft in Germany and Spain in line with possible customer needs."
Simon Barnes, Group Managing Director, BAE Systems Air, added: “The Typhoon plays an important role in protecting security and defense in Europe and the Middle East, in an increasingly complex global landscape. The program contributes substantially on an economic level and, also thanks to sales on the export market, has generated returns equal to more than double the initial investment of the British government. Continuing to invest in Typhoon is crucial to the resilience of Europe's defense and to ensuring the protection of the vital ecosystem that strengthens our country's industrial base."
Lorenzo Mariani, Co-General Director of Leonardo, declared: “From the beginning the Eurofighter program has played a fundamental role in the development of advanced technologies and in the employment of thousands of highly qualified professionals. This has also generated significant economic returns in partner countries. The broad spectrum of activities carried out by Leonardo in the platform, electronics, sensors and systems requires a widely diversified involvement which translates into an equally extensive and varied overall result, with important effects in our defense programs and civil business . At Leonardo we are extremely proud to be part of the Eurofighter Typhoon programme, which represents the backbone of air defense in many countries and is destined to grow and evolve in order to best carry out its tasks for the next 30 years, also becoming a bridge towards next generation air combat systems”.
Note: the economic contribution indicated in the report was evaluated in terms of gross domestic product, employment, returns generated by the tax pressure through the use of the input-output model. This has allowed us to separate the complex economic interdependencies in the Eurofighter ecosystem, offering a clearer understanding of how each element contributes to the overall economic structure.
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