Spain's Supreme Court Contentious-Administrative Chamber has denied Santa Bárbara Sistemas' precautionary measure to suspend 3,000 million euros in state loans to the Indra and Escribano Mechanical & Engineering joint venture. The court finds no evidence of imminent and irreparable harm to General Dynamics' subsidiary. It emphasizes the significant public interest in national defense modernization.
Spain's Supreme Court Contentious-Administrative Chamber has rejected Santa Bárbara Sistemas' request, the European subsidiary of U.S.-based General Dynamics, to precautionary suspend 3,000 million euros in loans granted to the joint venture (UTE) of Indra and Escribano Mechanical & Engineering (EM&E). These loans fund special armament modernization programs (PEM), part of contracts totaling 7,240 million euros, approved by royal decree on October 14 last year.
The court argues that the harms claimed by Santa Bárbara "do not go beyond a mere allegation lacking supporting evidence," with no proof of imminent or hard-to-repair damage. It notes that the company, a global defense leader, would not see its continuity, market position, or jobs threatened, and it already receives other loans, such as 176 million for the Pizarro vehicle upgrade program.
In contrast, suspension would cause "significant harms" to public interest by disrupting military, industrial, and budgetary planning. The judges highlight the national and EU strategy to reduce external dependency and bolster the defense industry, requiring immediate execution of these programs.
The ruling does not address the merits of Santa Bárbara's appeal, which continues its legal challenge against the artillery contract awards, where it sought to propose its Némesis model.
