Italy Seeks EU Support for Defence Spending Amid NATO Pressure

Italy has called on the EU to support bond issuance for defence spending, as it struggles to meet NATO's 2% GDP target by 2028. With Trump back as U.S. president, Italy's low defence budget is under scrutiny. Senior officials suggest EU-backed mechanisms to address these fiscal challenges.

Italy has appealed to the European Union for assistance in guaranteeing bond issuance crucial for bolstering defence spending. The Italian government faces challenges in meeting the NATO spending target of 2% of its gross domestic product (GDP) by 2028. This comes as Italy contends with a significant debt burden projected to reach 135.8% of GDP this year.

With Donald Trump re-elected as U.S. president, Italy's defence expenditure is again in the spotlight. His administration had pressured NATO members to achieve spending targets, a challenge for Giorgia Meloni's right-wing government. Defence Minister Guido Crosetto highlighted the potential for EU mechanisms to alleviate the impact on Italy's national debt and ensure social spending remains unaffected.

Increasing defence budgets has become crucial following Russia's invasion of Ukraine, with 23 out of NATO's 32 member states expected to meet the 2% target this year. However, Italy remains off target, with forecasts suggesting it might only reach 1.6% of GDP by 2027. Economy Minister Giancarlo Giorgetti has echoed the need for the EU to allow spending flexibility for defence investments.

(With inputs from agencies.)