Rome has reserved the full SAFE allocation but says it will decide later this year how much, if any, to draw as Brussels presses for a faster commitment.
Italy has reserved the option to borrow up to €14.9 billion from the European Union's SAFE defence facility, but the government has not yet decided how much, if any, it will ultimately use. Foreign Minister Antonio Tajani told parliament that the amount had only been reserved, with a final decision due by the end of the year and involving Economy Minister Giancarlo Giorgetti as Rome tries to bring its budget deficit below the EU's 3% of gross domestic product threshold and exit the bloc's excessive deficit procedure. The European Commission welcomed Italy's interest in the full allocation but said a decision must come much sooner because the loan agreement needs to be signed quickly for funds to be disbursed and projects to start. Commission spokesperson Thomas Regnier said waiting until December would not fit the SAFE regulation's legal timetable and warned that any unused portion would have to be reallocated to other member states before year-end. Defense Minister Guido Crosetto said the choice would be made on financial rather than political grounds, describing SAFE as an alternative to issuing Italian government bonds. SAFE is a €150 billion EU instrument offering long-term, low-interest loans for joint defence procurement to strengthen Europe's defence readiness and industrial base.