Italian Prime Minister Giorgia Meloni has convened the chief executives of Leonardo and Fincantieri to decide how Italy will use billions of dollars in European Union-backed defense funding, Defense News reported on Friday. The meeting occurred in Rome, with Defense Minister Guido Crosetto, finance and foreign ministers, and others in attendance. It follows Italy’s move to apply for low-cost loans under the EU’s Security Action for Europe plan, which is expected to provide $174.5 billion in defense financing.
The discussions also touched on the EU’s “national escape clause” introduced this year, which would allow members to increase defense spending even if it pushes their budget deficit beyond the 3 percent limit. The measure allows member states to temporarily exceed the standard deficit limit by up to 1.5 percent annually for over four years to ramp up defense spending without triggering penalties.
A finance ministry source told Defense News that Italy, whose deficit is already above that threshold, will not use the provision for now but could consider it in 2026 if the deficit falls below 3 percent.
This development comes amid several major Italian defense initiatives involving Leonardo and Fincantieri.
Earlier this month, Leonardo agreed to acquire Iveco Defence Vehicles in a $1.94 billion deal to consolidate its position as a fully integrated manufacturer in the land defense sector. IDV recently partnered with BAE Systems Hägglunds to develop and produce BvS10 armored all-terrain vehicles for Italy‘s military needs.
Meanwhile, the Italian Navy has tasked Fincantieri with designing warships that can deploy airborne, surface and underwater drones for surveillance, interception and rescue missions. In a separate development, the navy has ordered a fourth offshore patrol vessel under its $258 million next-generation OPV program from Orizzonte Sistemi Navali, a Fincantieri-Leonardo joint venture.
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