Overview
- Under the NATO deal reached at The Hague summit, Italy has agreed to raise defense spending to 5% of GDP by 2035.
- The commitment divides the target into 3.5% for conventional forces and 1.5% for broader security needs including cybersecurity and critical infrastructure.
- Officials estimate an extra €6-7 billion annually for ten years, bringing total additional outlays to about €450 billion by 2035.
- The government has pledged to finance the increase through fresh allocations without cutting other priority programs or introducing new taxes.
- The Parliamentary Budget Office expects a modest 0.5 growth multiplier from the expanded defense budget but cautions that debt could climb to 139% of GDP by 2041.