Italy Seeks EU Defense Fund to Boost Security Spending

Italy has announced its intention to access the European Union's new arms-buying fund to support its defense spending initiatives, according to Economy Minister Giancarlo Giorgetti. This move is part of a broader plan to increase defense expenditures in alignment with commitments to NATO partners.

Italy has pledged to raise its defense spending to 3.5% of its national output, up from the current 2%, plus an additional 1.5% for broader security measures. This plan aligns with the U.S. goal for NATO allies to meet a total target of 5% overall spending on defense and security.

Giorgetti emphasized that utilizing the Security Action for Europe (SAFE) scheme could significantly reduce loan costs compared to domestic bond borrowing. Italy hopes to leverage up to 15 billion euros from the EU's allocations, which promise more favorable interest rates to support common defense procurement across member states.

(With inputs from agencies.)