Italy has approved $52.4 billion in total defense expenditures for 2025, setting the stage for new contract opportunities as Rome accelerates modernization and procurement investments.
The Ministry of Defence’s long-awaited budget shows a 7.2 percent increase from 2024’s allocation of just over $33.5 billion, with spending levels expected to hold steady through 2027. The higher figure includes recategorized outlays such as pension payments and portions of the Carabinieri police budget — allowing Italy to formally meet NATO’s 2 percent GDP benchmark.
Defense Procurement Focus
Over the next 15 years, the government plans $40.5 billion in defense procurement focused on land, air and maritime programs. Key allocations include $115.8 million to upgrade Ariete main battle tanks, $57.9 million for Panther tank development with Rheinmetall and $150.5 million for new Lynx fighting vehicles.
In the aerospace sector, Italy earmarked $850.8 million for the F-35 Lightning II program — expanding its fleet from 90 to 115 aircraft — and $723.5 million for the Global Combat Air Programme with the United Kingdom and Japan. Starting in 2027, the country will invest $34.7 million to acquire six new maritime patrol aircraft, potentially the Japanese Kawasaki P-1.
NATO Push for Higher Spending
Italy’s budget marks a major milestone in NATO’s effort to boost collective defense investment. The alliance continues to press members to sustain the 2 percent of GDP threshold by 2025 and move toward a proposed 5 percent by 2035.
Rome’s rapid adjustment follows a year when it spent just 1.54 percent of GDP, one of the lowest rates among allies. Several European partners — including Germany, Belgium and Sweden — are pursuing similar increases as NATO shifts focus to long-term deterrence and readiness.