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Giorgetti Says Defense Budget Lift Won’t Cut Social Spending, Ties Plan to Deficit Test

Rome pursues EU Safe loans alongside special fiscal leeway pending key parliamentary approvals.

Overview

  • The government outlines a phased increase starting with about €3.5 billion this year and rising toward roughly €12 billion annually by 2028, equal to about 0.5 percentage points of GDP.
  • Economy Minister Giancarlo Giorgetti told the Senate the extra outlays would be insulated from welfare and social priorities through a national safeguard clause.
  • Proceeding depends on Istat’s March estimate of the 2025 deficit and subsequent Eurostat certification that could enable an exit from the EU Excessive Deficit Procedure.
  • Giorgetti said activating the safeguard would still require a formal deviation request to Parliament, alongside the conversion of the Ukraine support decree by late February.
  • Italy has applied for up to €14.9 billion in EU Safe loans now under review in Brussels, while additional government bond issuance is likely, and critics in M5S question funding clarity and scale.