Italy Champions EU Defence Investment Initiative

Italy has proposed a European-wide guarantee scheme to stimulate defence and aerospace private investments worth up to 200 billion euros. The initiative, presented by Economy Minister Giancarlo Giorgetti, aims to bolster defence spending without exacerbating national debts, utilizing EU resources and private capital.

Italy has unveiled a strategic proposal to its EU counterparts, aiming to activate a substantial push in defence and aerospace investments across Europe, potentially mobilizing up to 200 billion euros. The initiative intends to encourage private investments while keeping state financial burdens minimal.

Presented by Economy Minister Giancarlo Giorgetti during a meeting of European finance ministers in Brussels, the proposal seeks to enhance defence capabilities in response to potential Russian threats. Giorgetti emphasized the importance of balancing defence funding without compromising other vital areas such as health and public services.

The proposed European Security and Industrial Innovation Initiative envisions the creation of a 17 billion euro guarantee fund designed to leverage significant private investments. EU discussions are exploring avenues such as new joint borrowing and expanded roles for existing EU funds and the European Investment Bank to advance this plan.

(With inputs from agencies.)