Italy has formally requested €8 billion in low-interest loans from the EU’s SAFE defense funding program, a scaled-back version of its original €14.9 billion plan. The government, led by Prime Minister Giorgia Meloni, delayed the decision for months amid resistance within her coalition and from opposition parties, who argue public spending should take priority over defense investments.
The loans were initially intended to fund new armored vehicles and tanks, including 1,050 Lynx vehicles and 272 Panther tanks from Leonardo and Rheinmetall under a €23 billion deal. Defense Minister Guido Crosetto had already signaled a 18% cost reduction in July, hinting at potential delays or order adjustments. At last month’s NATO summit, Meloni emphasized the need to reassess military investments after observing Ukraine’s battlefield dynamics, where drones have proven highly effective against expensive assets.
Italy’s defense spending rose to 2.8% of GDP in 2026, though Meloni noted this increase includes domestic security expenditures rather than new defense programs.
