Overview
- Italy formally told the European Commission it wants to access SAFE funds in a letter sent late Wednesday, with government sources reporting a request of about €8 billion while Vice‑Premier Antonio Tajani publicly cited €8.9 billion and the final contract is not yet signed.
- The Defence Ministry must now draw up a list of projects to be financed and the government says disbursements and implementation would begin from next year once the Commission and Rome agree the precise loan terms.
- SAFE is an EU instrument that issues common European debt to lend up to €150 billion to member states at low interest and long maturities of up to 45 years, and it includes temporary fiscal flexibility worth roughly 1.5 percentage points of GDP over three years for defence spending.
- The move has reopened tensions inside the governing coalition, with Forza Italia backing the request as needed for military autonomy and the Lega and splinter groups expressing public reservations about prioritising defence over social and health spending.
- Watch for three next steps that will shape the outcome: the final signed loan amount and contract with the Commission, the Defence Ministry’s project list and procurement plans, and whether EU allocations change for other beneficiaries such as Ukraine.