Italy is set to propose a guarantee scheme to its European partners that could unlock up to €200 billion ($216.48 billion) in investments for the defense and aerospace industries, according to sources familiar with the matter.
Economy Minister Giancarlo Giorgetti will present the plan at a meeting of European Union finance ministers in Brussels.
The EU is exploring ways to increase defense spending, considering options such as joint borrowing, reallocating existing EU funds, and expanding the role of the European Investment Bank (EIB), with key decisions expected by June.
Italy supports these discussions and is looking for ways to minimize the impact on its already strained public finances. State guarantees typically affect the budget only when utilized.
The initiative, called the European Security and Industrial Innovation Initiative, proposes using €17 billion in European guarantees to generate €200 billion in investments over five years, strengthening Europe’s defense sector while ensuring financial sustainability.