Italy says hard to reach NATO spending target without EU budget flexibility

Other countries, including Britain and Poland, are seen above the target. "If we do not address the current inconsistency between the responsibility to strengthen collective security and the public finance constraints imposed by the EU, it will be very difficult to reach the NATO 2% minimum threshold within a reasonable timeframe," defence Minister Guido Crosetto told the lower house of parliament.

Italy will face a hard task in hitting a NATO defence spending target if the European Union refuses to grant some budget flexibility, the defence minister told parliament on Wednesday.

At a summit in 2014, NATO leaders agreed to move towards spending at least 2% of gross domestic product (GDP) on defence within a decade, but the previous administration led by Mario Draghi deferred the plan to 2028. Italy was at around 1.5% last year, the latest NATO estimates show, meaning it would need to invest an additional 10 billion euros ($10.93 billion) to reach the minimum goal. Other countries, including Britain and Poland, are seen above the target.

"If we do not address the current inconsistency between the responsibility to strengthen collective security and the public finance constraints imposed by the EU, it will be very difficult to reach the NATO 2% minimum threshold within a reasonable timeframe," defence Minister Guido Crosetto told the lower house of parliament. As the EU draws up new budget rules for its members, the rightist administration in Rome is urging allies to grant more flexibility over the way investments are considered in the Stability and Growth Pact.

"I had to raise the issue of the constraints of the Stability Pact which, given our public debt, puts us in a ... position with narrow margins for actions," Crosetto said. The Italian public debt is seen at around 142% of GDP this year and is proportionally the highest in the euro zone after Greece's, which makes it hard for Rome to ensure it falls while waging large investment programmes.

Crosetto said several alliance members of the alliance will be pushing for even more ambitious objectives at a NATO summit scheduled for mid-July in Vilnius. "The current security environment requires a credible military instrument with the necessary capabilities to contribute to collective defence," he told lawmakers. ($1 = 0.9153 euro)