ROME – Italy’s defence minister revealed on Thursday that he has urged the Treasury twice to decide on accessing a European Union arms-buying fund, stressing that Rome must confirm by month’s end to tap into the scheme.
Defence Minister Guido Crosetto made the comments to reporters while launching a digital platform. He described himself as “neither pessimistic nor optimistic” about the outcome, noting contracts must be signed by late May under the Security Action for Europe (SAFE) instrument. This EU-backed joint borrowing program, supported by the bloc’s budget, aims to enhance defence capabilities and help members hit tougher NATO spending goals.
Italy joined several nations last year in asking the European Commission for access to these loans, which offer lower interest rates than market options for planned expenditures. The government committed over 12 billion euros to raise defence spending by 0.5% of GDP through 2028, a move that drew protests from opposition parties favoring funds for public services.
Shifting priorities have complicated matters. Prime Minister Giorgia Meloni’s administration now focuses on curbing soaring energy costs after the U.S.-Israeli war against Iran intensified pressures on Italy, the euro zone’s third-largest economy. Economy Minister Giancarlo Giorgetti voiced caution in parliament, highlighting repayment obligations and budget limits. He emphasized ongoing talks with the Commission for more flexibility to protect households and businesses from high energy prices, calling it the “top priority.”
Defence sector sources express growing unease over the Treasury’s delay, viewing SAFE access as key to plans. While Romania and Poland have committed, the 150 billion euro ($175.50 billion) fund leaves Italy eligible for about 14.9 billion euros.