24.06.2026, Rome.
The dispute between the Italian Ministry of Defense and the Ministry of Finance has stalled the signing of European defense loans and called into question the plan to rearm the Italian army, Rossa Primavera News Agency‘s Europe Desk on June 21.
A conflict has erupted in Giorgia Meloni’s ruling coalition between Defense Minister Guido Crosetto and Economy Minister Giancarlo Giorgetti over €14.9 billion from the European defense fund SAFE. By mid-June 2026, Italy had still not signed a loan agreement with the European Commission, unlike Poland, Romania, Belgium, Lithuania, and Croatia. Moreover, Rome is essentially prepared to request only €4–5 billion of the amount due. Crosetto’s plan to increase the armed forces by 40,000 personnel by 2033 and create a new reserve has been called into question.
The delay itself is not critical for current defense capabilities: SAFE is loans, not grants, and even full utilization would only bring Italy’s military spending to about 2.5% of GDP. However, by not taking this loan, Rome misses a window of cheap financing for military costs at a 3% rate with repayment starting in 2035.
Giorgetti’s logic is simple: new loans increase the total public debt, which has already reached 137% of GDP, while Italy has been under an excessive deficit procedure since 2024. According to the Ministry of Finance, it only makes sense to borrow against already planned contracts – in order to save on interest.
Crosetto objects: if SAFE only replaces existing expenditures, the instrument loses all meaning.
Is the plan to expand the armed forces feasible without these loans? Formally, the reform has been launched by a bill, but its pace is stretched over years and now depends on the autumn budget: Giorgetti has promised an increase in military spending of 0.35% of GDP, about €7.5 billion, in 2026–2027. This is a compromise that allowed Crosetto to remain in the government. But current funding is noticeably lower than Crosetto’s ambitions suggest.
The Ministry of Finance’s caution accurately reflects public sentiment. According to a poll by the European Council on International Relations, Italy is the only country in Europe where a majority is against increasing military spending: 58% against, 28% in favor. Ahead of the 2027 elections, this is a significant factor: behind Giorgetti’s budgetary arguments, representing the League party, an electoral calculation is also visible.
NATO partners are reacting with growing irritation – especially in contrast to Poland, which has already received its first tranche of €6.6 billion. Against the backdrop of the alliance’s new target of 5% of GDP by 2035 and pressure from Washington, Rome’s delay is read as a signal of unreliability. It is no coincidence that Crosetto himself warned at a NATO ministerial meeting: remaining outside common commitments will ultimately cost a thousand times more.
Source: Rossa Primavera News Agency
