ROME – Italy is seeking European Union support to meet NATO’s defense spending target of at least 2% of GDP by 2028. Italian officials argue that this requirement conflicts with the EU’s fiscal rules, which aim to control public debt and deficits. To address this, Italy has proposed that the EU guarantee bond issuances dedicated to defense spending, providing financial flexibility to increase its defense budget without breaching fiscal constraints.
The recent re-election of Donald Trump as U.S. President has intensified this issue. During his previous term, Trump criticized NATO members for not meeting the 2% defense spending guideline. His return to office is expected to renew pressure on NATO allies, including Italy, to fulfill their defense spending commitments.
Italy’s current defense spending is approximately 1.5% of its GDP, below the NATO target. Prime Minister Giorgia Meloni’s government has expressed concerns about balancing increased defense expenditures with existing fiscal responsibilities. By seeking EU-backed financial mechanisms, Italy aims to enhance its defense capabilities while adhering to EU fiscal regulations.
This situation underscores the broader challenge for EU member states in aligning national defense obligations with collective fiscal policies, especially under renewed U.S. scrutiny of NATO spending commitments.