Italy's Defence Minister Urges Decision on EU SAFE Loans Before Deadline

Italy's Defence Minister Guido Crosetto has urgently called for a government decision regarding participation in the European Union's Security Action for Europe (SAFE) arms-buying fund. In letters to the Treasury, Crosetto emphasized that Rome must confirm its access to the scheme by the end of May to meet contract signing deadlines. The SAFE instrument, a joint borrowing mechanism backed by the EU budget, aims to enhance defense capabilities and help member states achieve NATO spending targets. Italy is entitled to approximately 14.9 billion euros from the 150 billion euro fund. However, internal government tensions have arisen as Prime Minister Giorgia Meloni's administration faces pressure from surging energy prices following the U.S.-Israeli war against Iran. Economy Minister Giancarlo Giorgetti has expressed caution, citing repayment obligations and the need for budget flexibility to support households and businesses. While countries like Poland and Romania have already committed to the fund, opposition parties in Italy argue that resources should prioritize struggling public services. The defence sector remains anxious about the final decision, viewing SAFE funding as crucial for planned military expenditures amidst tightening public finances.