Italy plans to request €14.9 billion ($16.94 billion) from the European Union's joint-borrowing defence instrument, the Security Action for Europe (SAFE), before the end of the year, Foreign Minister Antonio Tajani told parliament on Tuesday.
The SAFE instrument is a borrowing mechanism underpinned by the EU budget that aims to strengthen the bloc's defence capabilities and assist member states in meeting new NATO spending targets.
Tajani's announcement marks a reversal from Italy's stance in May, when the government indicated it might be unable to meet its commitments to increase defence spending and to make use of the SAFE scheme because of competing needs created by rising energy prices.
Since May, Italy has obtained the right from the EU to deploy part of the bloc's national escape clause within budget rules to help offset energy-related expenditures. Economy Minister Giancarlo Giorgetti said on Monday the government will seek parliament's approval next week to activate that clause - a step that would permit Italy to record higher deficits through 2028.
Italian officials have clarified that the SAFE funds are intended to finance defence programmes already incorporated in the government's budget rather than to expand military spending beyond those plans.
Context and implications
The decision to move ahead with a €14.9 billion request to the SAFE facility aligns Rome's financing plan for defence with a mechanism designed to pool borrowing across the EU. At the same time, Italy is balancing defence commitments against significant energy cost pressures by using the EU escape clause to create fiscal space through 2028.
Parliamentary approval will be required to tap the escape clause, and government statements to date indicate the SAFE request is targeted at projects already budgeted rather than representing a net rise in military expenditure.
Methodology note
The details in this report are drawn from statements attributed to Italian government ministers in parliament and to public remarks by the Economy Minister concerning forthcoming legislative steps.