Italy Considers EU SAFE Funding Amid Budget Strain

Foreign Minister Antonio Tajani told parliament that Italy intends to request €14.9 billion from the European Union’s Security Action for Europe (SAFE) borrowing scheme by the end of the year. The request would reverse earlier suggestions that Rome might abandon the programme. League senator Claudio Borghi responded that “it will be up to parliament to decide if and when to use that funding channel.” “It will be up to parliament to decide if and when to use that funding channel,” — Italy's League

Reuters

Raising defence spending is highly unpopular in Italy, where Prime Minister Giorgia Meloni faces opposition pressure to redirect limited budget leeway toward easing rising energy costs. In May, the government indicated it might struggle to meet NATO-mandated defence increases and to use the SAFE scheme without more flexible EU budget rules on energy spending. The administration has now secured permission to apply part of the EU’s “national escape clause,” allowing higher deficits through 2028 to cover energy expenses.

Reuters

• Antonio Tajani clarified that the €14.9 billion figure is only “reserved” and that the final amount to be demanded will be determined by parliament before year-end.

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• Economy Minister Giancarlo Giorgetti announced that the cabinet will seek parliamentary approval next week to activate the escape-clause provisions, enabling the higher deficit path.

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• Defence Minister Guido Crosetto said the SAFE funds would be directed to defence projects already included in Italy’s budget rather than expanding overall military spending, and hinted that the request could be limited to roughly half of the entitlement.

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• “It will be up to parliament to decide if and when to use that funding channel,” — Italy's League “It will be up to parliament to decide if and when to use that funding channel,” — Italy's League

Reuters