Italy's Ambitious Plan: Unleashing €200 Billion in Defence and Aerospace Investments

Italy aims to propose a guarantee scheme to European partners, potentially triggering €200 billion in investments in the defence and aerospace sectors. Economy Minister Giancarlo Giorgetti will present the plan to EU finance ministers, aiming to boost defence spending while minimizing impacts on Italy's public finances.

Italy is set to reveal a bold initiative to its European counterparts that could unlock investments amounting to €200 billion in the defence and aerospace industries. Economy Minister Giancarlo Giorgetti is expected to detail the proposal in a meeting with European Union finance ministers in Brussels.

As European countries explore avenues to enhance defence expenditure, options like new joint borrowing and leveraging existing EU funds are on the table. Italy supports these discussions, seeking approaches that would mitigate financial strain on its public finances, as state guarantees often impact budgets when activated.

The proposed scheme, known as the European Security and Industrial Innovation Initiative, suggests €17 billion in European guarantees, which could catalyze up to €200 billion over five years. The use of state-backed assurances is at the core of this strategic financial maneuver.

(With inputs from agencies.)