Italy economy minister: Activating EU clause allowing extra deficit for higher defense spending would prevent us from exiting EU deficit procedure

Italy economy minister: Activating EU clause allowing extra deficit for higher defense spending would prevent us from exiting EU deficit procedure

Italy's Foreign Minister Antonio Tajani has announced that the country will need a decade to align its defense spending with NATO targets, signaling potential progress towards an agreement at the upcoming NATO summit in The Hague. This commitment comes as Italy seeks to bolster its defense capabilities and demonstrate alliance unity with its NATO partners.

Tajani, speaking alongside NATO Secretary General Mark Rutte, emphasized the importance of the upcoming summit, scheduled for June 24-25, in finalizing an agreement that underscores NATO's commitment to defense improvements and strategic collaboration [1]. The summit is a pivotal moment for NATO, as leaders aim to solidify their resolve in bolstering defense efforts and maintaining a united front against global challenges.

Meanwhile, Italy's economy minister has expressed concerns about activating an EU clause that would allow for extra deficit spending to increase defense spending. The minister argues that this move could prevent Italy from exiting the EU's deficit procedure, potentially impacting the country's economic stability and recovery efforts.

The Italian economy is expected to face several key events in the coming days. The ISTAT will release May CPI final data, and the Bank of Italy will provide April data on public finances, state borrowing, and debt. Additionally, Italian merchant bank Mediobanca has postponed a shareholder meeting to vote on its bid for Banca Generali, while UniCredit holds a stake in Mediobanca and has been active in managing equity flows. The lender Banca Popolare di Sondrio has also initiated a full voluntary takeover bid for rival Banca Popolare di Sondrio, which ends on July 11 [2].

The upcoming events highlight the complex interplay between Italy's defense spending, economic stability, and its commitment to NATO. As Italy works towards aligning its defense spending with NATO targets, it will also need to navigate the delicate balance between economic growth and deficit management.

References:
[1] https://www.devdiscourse.com/article/law-order/3456520-italys-decade-long-defense-spending-target
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3SG18V:0-italy-factors-to-watch-on-june-16/