Defence: cuts totalling seven billion – projects at risk
The Public Finance Policy Document approved by the Government – which sets out the budgetary framework for the budget – outlines a request for flexibility of 14 billion for 2027 and 14 billion for 2028: 0.3 per cent of GDP for defence (around seven billion less than forecast)
Key points
- Crosetto: action on defence personnel numbers following the budget
- The Minister: ‘A maximum of 1,200 military personnel for the Cyber Force with current resources’
- Strengthening the ‘Strade Sicure’ initiative
- Cabinet gives the go-ahead to proposed contract renewals for the defence sector
- Crosetto: 8.9 billion in Safe funds confirmed; they are moving forward
The situation is still evolving. There are still too many variables to be determined to be able to paint a clear picture. There is, however, a starting point. And it gets to the heart of the matter. The Public Finance Policy Document approved by the Government, which provides the budgetary framework for the budget, sets out a request for flexibility of 14 billion for 2027 and 14 billion for 2028: 0.3 per cent of GDP for defence (around seven billion less than expected) and 0.3 per cent for energy per year.
According to a statement from Palazzo Chigi, on 10 September the government submitted a request to the European Commission to activate the national safeguard clause in relation to increased expenditure on energy and security.
Speaking at a press conference following the Cabinet meeting at Palazzo Chigi, the Minister for the Economy, Giancarlo Giorgetti, reiterated that the budget would be ‘serious’. As for the measures to be included in the Budget Bill, he pointed out that ‘my answer is probably different from a month ago; the approach must be a touch more cautious’ compared to what had been ‘announced’.
In short, the defence budget – in a ‘particularly complex context in many respects’, to use the phrase employed by Giorgetti, with inflation showing no sign of abating and the spread between BTPs and Bunds having started to widen again – is being cut. Although there has been no shortage of announcements from within the ruling coalition in recent times ahead of the forthcoming budget, the pool of resources looks set to be limited. And some of the proposals outlined may be scrapped.
“I fully understand the reasons behind this decision, which are due to the current economic climate, inflation and the ongoing turmoil in the sovereign bond markets,” commented Defence Minister Guido Crosetto. The important thing is that the 0.3 per cent for 2027 – which had already been budgeted at that level – remains untouched and is used for the priorities identified by the Ministry of Defence. For 2028, a further increase of 0.3 has been planned for the time being, instead of the initial 0.6. I have taken note of this and hope that conditions in 2027 will allow for a subsequent increase. Measures to tackle the high cost of energy are welcome, as they will help alleviate the problems faced by every household.”

