Italy to increase defence budget only when it emerges from EU deficit

Italian Defence Minister Guido Crosetto has announced that the country plans to gradually increase defence spending, but only after it emerges from the EU's excessive deficit regime.

The move is linked to pressure from NATO, which is asking member states to increase defence spending to up to five per cent of GDP, but Italy is only achieving two per cent so far.

The new target includes an annual increase in spending of 0.15 to 0.2 per cent of GDP by 2035, to be implemented flexibly. If Rome exits deficit mode by mid-2026, it can apply for an "escape clause" that would allow it to increase spending without breaching fiscal rules.

The minister also said he had a promise from the finance ministry of a specific timetable for increases for 2026 to 2028.

The decision is part of a broader EU effort to respond to security challenges, particularly in the context of the war in Ukraine.

(reuters, swag)