Italy Taps EU's Defense Fund to Boost Military Spending

Italy is seeking to access a new EU arms-buying fund to bolster its defense budget, aligning with NATO partners. This financial aid aims to increase Italy's defense expenditure from 2% to 3.5% of its GDP. Under the SAFE scheme, Italy could secure lower interest loans for defense procurement.

Italy is seeking to utilize a novel European Union fund dedicated to arms procurement to enhance its defense investments. This move is part of its commitment alongside other NATO members to elevate defense expenditure to 3.5% of its GDP, as per three knowledgeable officials.

The SAFE scheme by the EU is set to dispense 150 billion euros in loans over a decade to facilitate common defense procurement across member states. Italy, among several nations, has requested access to this support, aiming to fulfill U.S. President Donald Trump's overarching 5% defense spending target.

Italy plans to use up to 15 billion euros from the SAFE loans to finance planned expenditures through 2030. This strategy would allow Rome to secure loans at favorable interest rates compared to traditional sovereign bonds.

(With inputs from agencies.)