The Spanish Government is contemplating the integration of Escribano Mechanical & Engineering (EM&E) as a subsidiary of the technology and defense giant Indra, preferring this option over a merger that would amplify Indra's shareholder presence. The reluctance to move forward with a merger is linked to concerns regarding potential conflicts of interest, particularly due to the fact that Ángel Escribano, who is the president of Indra, has a brother who leads EM&E. The Government fears that such a merger could diminish the power of the State Industrial Participation Society (SEPI), which plays a vital role in the oversight of state-owned enterprises.

Indra is a key player in the defense sector, heavily relying on numerous government contracts to support its operations. This strategic significance positions Indra as a crucial entity for Spain's competitive edge in the European defense market, which has been under considerable scrutiny amid rising geopolitical tensions. By keeping EM&E as a subsidiary, the government aims to maintain influence over both companies while securing vital industry contracts.

The internal power struggle within Indra has posed challenges for the Government, especially since it was instrumental in facilitating Ángel Escribano's ascension to the presidency of the defense company. With Escribano holding a 14% stake in Indra, the dynamics of the company's leadership and ownership structure are increasingly complex, and the ramifications of decisions made now could have long-term impacts on the future of both Indra and EM&E as critical players in Spain's defense sector.