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Italy Commits to 5% GDP Defense Spending by 2035

Rome will avoid activating the EU safeguard clause to ensure all defense spending is counted towards the deficit ceiling.

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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.