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Italy to Meet NATO’s 2% Defence Spending Target Through Accounting Adjustments

Rome includes civilian technologies and military pensions in its calculations, avoiding a full €11 billion cash increase.

Italy's Economy Minister Giancarlo Giorgetti looks on, as Italy's Prime Minister Giorgia Meloni appears at the upper house of the Parliament in Rome, ahead of a European Union leaders' summit, in Rome, Italy, March 18, 2025. REUTERS/Remo Casilli/File Photo

Overview

  • Italy will officially meet NATO's 2% GDP defence spending guideline in 2025 by broadening accounting criteria rather than increasing actual expenditures.
  • Economy Minister Giancarlo Giorgetti confirmed the inclusion of civilian technologies and military pensions as part of defence spending to align with NATO rules.
  • Italy, one of NATO's lowest defence spenders at 1.49% of GDP in 2024, faces growing U.S. pressure to further raise its military budget.
  • The European Commission offered a temporary deficit leeway for increased defence spending, but Italy has opted not to use this option due to its high-debt constraints.
  • Italian Defence Minister Guido Crosetto criticized U.S. President Donald Trump’s push for NATO members to spend 5% of GDP on defence as unrealistic.