Subscribe to our free daily newsletters
. Military Space News .




Subscribe to our free daily newsletters



MILPLEX
Brazil defers jet fighter orders for 2011

by Staff Writers
Rio De Janeiro (UPI) Mar 1, 2011
Brazil has put off indefinitely its plans to buy 36 jet fighters for which it invited bids in 2010 after sharp cuts in its defense expenditure.

Brazilian officials originally had said the jet fighter purchase would remain on the agenda despite drastic reductions in the military budget. The officials also had hinted the jet fighter deal could be decided this year but no spending made on it during 2011.

The latest developments leave open the possibility that the deal may never take off and Brazil may choose the diplomatic option of leaving the bidders in limbo rather than announcing a cancellation. France, Sweden and Boeing Co. submitted competing bids to win the order, originally believed to be worth more than $6 billion.

The latest cuts in Brazilian defense expenditure are likely to reduce the total defense outlay for this year to no more than $6.5 billion from an estimated $30 billion budget.

Finance Minister Guido Mantega told reporters the government had "no money" to spend on a military equipment acquisition program that could include the purchase of 36 fighter jets and an option on several more aircraft.

"We have no available funds and there's no fiscal space," Mantega said, ruling out any decision on the jet fighters.

The Boeing Super Hornet F-18 is a contender for the deal and faces competition from French Dassault Aviation's Rafale and Swedish manufacturer Saab's Gripen.

The Brazilian tender provoked international marketing frenzy. French President Nicolas Sarkozy lobbied for Dassault and in Sweden there was discussion of whether King Carl XVI Gustaf should be asked to push for Saab's bid.

Brazil's new President Dilma Rousseff, who took office in January, launched budgetary cuts in February, reversing many of the decisions taken by former President Luiz Inacio Lula da Silva.

Rousseff aides began pruning the defense budget as economists warned the country's bloated public spending could fuel inflation.

Brazil's economic woes increased as it found its currency rising on the strength of large cash inflows from investors attracted to Brazil's interest rates.

Officials said the government's current efforts were aimed at preventing a repeat of last year, when growth rates in excess of 7.5 percent overheated the economy. The government has set targets of a lower growth rate -- probably no more than 5 percent -- to allow the fiscal and monetary situation to stabilize.

Mantega said the budget cuts didn't presage a policy shift or the government's retreat from the economy. Instead, he said, the cuts indicated adjustments in response to the current situation.

He said the government had already implemented a stimulus plan in response to the 2008-09 economic crisis and didn't need to keep injecting funds in areas that were up for trimming and streamlining to improve efficiencies and performance.







Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


MILPLEX
Libya arms bans will hit Europeans
Beirut, Lebanon (UPI) Mar 1, 2011
The arms embargoes slapped on Libya by the United Nations and the European Union could cost international defense companies, particularly those in Europe and Russia, billions of dollars. Much will depend on how long the sanctions last and whether Libyan leader Moammar Gadhafi, who has ruled Libya with an iron grip since 1969, wins his fight for survival against his many enemies. ... read more







MILPLEX
Ukraine's Role In European Missile Defense Not Yet Discussed

Israel successfully tests Arrow anti-missile system

Knesset urges $1.4 billion Iron Dome buy

Surface Combat Systems Center Tests Aegis BMD Capabilities

MILPLEX
Enhancing The Protection Of Rotary Aircraft Against Missiles

JLENS Program Achieves Critical Milestone

System Integration Test For SM-3 Kinetic Warhead Completed

$7 bn UAE missile deal expected this spring

MILPLEX
Fire Scout Completes First Unmanned Test Flights On Littoral Combat Ship

K-MAX Achieves Numerous Firsts During Recent Demo Flights

Northrop Grumman Awarded UAS Common Architecture Working Group Contract

AeroVironment Develops World's First Fully Operational Life-Size Hummingbird-Like Unmanned Aircraft for DARPA

MILPLEX
LockMart Wins Role On Navy C4ISR Services Contract

ONR Moves A Modular Space Communications Asset Into Unmanned Aircraft For Marines

Northrop Grumman Next-Gen FBCB2 System Approved For Fielding

Boeing To Demonstrate Aviation Command And Control Subsystem For US Marine Corps

MILPLEX
Russian Army To Receive Advanced Weaponry In 2011

LockMart Receives Major Contract Modification For F-22 Raptor Sustainment

Boeing Receives Second Option Of B-52 Engineering Sustainment Contract

A Device Enables The Remote Explosion Of Improvised Land-Mines

MILPLEX
Libya arms bans will hit Europeans

Brazil defers jet fighter orders for 2011

EADS 'evaluating' US Air Force tanker award data

Britain may scrap Tornadoes to save $1.6B

MILPLEX
Japan, China agree to patch up ties

Mullen Mideast trip shows US 'worry': Iran general

US top military officer visits Gulf amid Arab revolts

Taiwan cardinal eyes China-Vatican dialogue

MILPLEX
Scientists Build World's First Anti-Laser

Yale scientists build 'anti-laser'

'Air laser' could find bombs at a distance

ONR Achieves Milestone In Free Electron Laser Program


The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement