Italy proposes €200B defense investment plan with EU support

Italy is proposing a substantial guarantee scheme to its European counterparts aimed at mobilizing up to €200 billion for defense and aerospace investments. The initiative, presented by Economy Minister Giancarlo Giorgetti at a meeting of EU finance ministers in Brussels, seeks to enhance Europe's defense capabilities in response to Russian threats while minimizing the impact on public finances. The plan, known as the European Security and Industrial Innovation Initiative, includes a €17 billion guarantee fund to attract private investment, with discussions on joint borrowing and expanding the roles of existing EU funds and the European Investment Bank. This proposal reflects Italy's commitment to strengthening its defense sector and ensuring financial sustainability as it aims to stimulate economic growth and innovation. Key decisions regarding this initiative are anticipated to take place by June, as Italy navigates its budgetary constraints. Overall, this move positions Italy as a significant player in shaping future EU defense strategies.