Italy is unlikely to be able to implement plans to increase defense spending due to the deteriorating economic situation and rising energy prices caused by instability in the Middle East.
This is stated in a government document reviewed by Reuters.
Prime Minister Giorgia Meloni's government has revised macroeconomic forecasts, lowering growth expectations while simultaneously raising projections for budget deficit and public debt. The reasons are the energy crisis and the consequences of geopolitical instability.
The Italian Ministry of Economy stated that the country has "limited room for maneuver" due to the need to support households and businesses amid rising energy prices.
Economy Minister Giancarlo Giorgetti emphasized that under current conditions, budget priorities will need to be reassessed, including the planned increase in defense spending.
Italy, like other NATO countries, previously supported the initiative to gradually increase defense spending to 5% of GDP by 2035. However, the current budget only provided for moderate growth - about 0.5% of GDP by 2028.
Against the backdrop of the crisis, Prime Minister Meloni also stated the need to discuss temporary easing of EU budget rules in the event of further escalation of international conflicts.
