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Italy's defense budget could shrink by up to €8 billion after Deputy Prime Minister Matteo Salvini pushed through a cabinet cut to the windfall from the EU's National Escape Clause, deepening a split within PM Giorgia Meloni's coalition over military spending and support for Ukraine.

What is a key fact in this story? (1)

**Italy's defense budget** could lose up to €8 billion ($9 billion) after Deputy PM **Matteo Salvini**'s League party won a Thursday cabinet meeting that cut the expected NEC defense windfall from €21–22 billion down to around €14 billion.

What is a key fact in this story? (2)

**Prime Minister Giorgia Meloni** remains isolated on Ukraine, formally backing Kyiv and committing to NATO's 5% of GDP defense target (claiming 2.8% reached this year including domestic security), while her coalition partner Salvini opposes arms for Ukraine and wants a deal with Moscow, and right-wing challenger **Roberto Vannacci** calls for lifting Russia sanctions.

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Ukraine war fatigue fuels defense-spending downgrade plan in Italy — SkimNews

By Defense News · Summarized & edited by Kapil Samant · 2026-10-02

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Italy's defense budget could lose up to €8 billion ($9 billion) after Deputy PM Matteo Salvini's League party won a Thursday cabinet meeting that cut the expected NEC defense windfall from €21–22 billion down to around €14 billion.
Prime Minister Giorgia Meloni remains isolated on Ukraine, formally backing Kyiv and committing to NATO's 5% of GDP defense target (claiming 2.8% reached this year including domestic security), while her coalition partner Salvini opposes arms for Ukraine and wants a deal with Moscow, and right-wing challenger Roberto Vannacci calls for lifting Russia sanctions.
Italy's Five Star Movement poll of its own members found over 90% opposed European rearmament and blamed Western arms deliveries to Ukraine for prolonging the war, illustrating cross-coalition war fatigue.
Italy has already scaled back its EU SAFE loan request from an initial €14.9 billion to €8 billion, and Leonardo CEO Lorenzo Mariani told a Sept. 23 parliamentary hearing that SAFE is 'the first, real useful measure' Europe has produced, saying he had lobbied the Meloni government to use it.
IAI analyst Alessandro Marrone said Rome urgently needs to finalize its NEC and SAFE decisions so the defense ministry can plan, warning the gap is not just about NATO targets but also about filling holes left by U.S. force pullouts from Europe and supporting Italian naval deployments to the Red Sea.

Why it matters: The €8 billion cut shrinks the cash available to Italy's defense ministry at a moment when Rome has simultaneously lowered its SAFE loan ask from €14.9 billion to €8 billion, meaning two EU rearmament vehicles are being dialed back at once — while Meloni still publicly pledges NATO's 5% of GDP target without publishing the supporting budget breakdown. For Italy's defense industry, led by Leonardo, the delay and downsizing directly complicates the multi-year planning they say is needed to replace departing U.S. capabilities in Europe.