Italy plans gradual increase in defense spending after EU clears deficit procedure

Italy aims to boost its defense budget after leaving the EU’s excessive deficit procedure, preparing gradual annual increases to strengthen security and modernize its armed forces.

Italy will gradually raise its defense budget once it exits the EU’s excessive deficit procedure, Defense Minister Guido Crosetto said. Military spending currently stands at around 2% of GDP, far below NATO’s 5% target, with planned increases of 0.15% in 2026, 0.15% in 2027, and 0.2% in 2028.

After mid-2026, Italy may request an EU “escape clause” allowing it to exceed the 3% deficit cap. The government says this flexibility would help reinforce national security and modernize the military without destabilizing public finances.