ROME – Italian Economy Minister Giancarlo Giorgetti expressed hope on Wednesday that the European Commission would grant special consideration to defence spending when assessing compliance with EU budget rules. Speaking in the Chamber of Deputies, Giorgetti also announced that Raffaele Fitto, Minister for European Affairs, was Italy’s candidate for a role in the new EU Commission expected to be led by Ursula von der Leyen.
“We hope the European Commission will recognise defense spending as a relevant factor,” Giorgetti said, emphasizing the importance for the Italian government to meet its political commitment to adjust military spending. This adjustment follows the pressure from the United States on NATO’s European members to increase their defence expenditures to at least 2% of each country’s gross domestic product (GDP) after Russia’s invasion of Ukraine.
Italy’s defence spending has decreased from 1.59% of GDP in 2020 to 1.46% in 2023. At a NATO summit this month, Prime Minister Giorgia Meloni indicated plans to reverse this trend, raising it to 1.6% next year. Italy was placed under an Excessive Deficit Procedure by the EU last month and is currently negotiating with Brussels to reduce its fiscal deficit while adhering to the EU’s revamped fiscal rules. These rules require a gradual reduction of deficit and debt from 2025 over a period of four to seven years, with the longer timeframe available for countries undertaking reforms and investments in EU-prioritized areas.
Giorgetti’s remarks come as Ursula von der Leyen seeks support from EU lawmakers for a second term as president of the European Commission. The minister announced Fitto’s candidacy, noting that Prime Minister Meloni’s Brothers of Italy party had not yet stated whether its 24 lawmakers would support von der Leyen in a European Parliament vote on Thursday.
Fitto, one of Meloni’s closest aides, is currently responsible for implementing Italy’s post-COVID Recovery Plan, which includes receiving approximately 194 billion euros ($212.08 billion) in grants and low-interest loans from the EU through 2026. “Fitto is our candidate, he’s the horse that’s running, we’re cheering,” Giorgetti said.