Tajani: "We've reserved €14,9 billion from SAFE for Defense; we'll decide how much to use by the end of the year."

Italy has decided to submit a request for up to €14,9 billion through the European SAFE program , the financial instrument created by the European Union to support member states' investments in security and defense. The announcement came from Vice President of the Council and Foreign Minister Antonio Tajani , during the follow-up to the parliamentary briefing on the outcome of the NATO summit in Ankara.

The statement was delivered before the Foreign Affairs and Defense Committees of the Chamber of Deputies and the Senate, along with Defense Minister Guido Crosetto . The parliamentary debate concerned the Atlantic Alliance summit held in the Turkish capital on July 7 and 8, 2026, but a significant portion of the debate focused on how Italy intends to finance its military programs in the coming years.

Tajani: "We will formulate the proposal by the end of the year."

"We have decided to use SAFE, requesting an intervention of €14,9 billion," Tajani declared, explaining that the Italian proposal will be finalized by the end of 2026. The Ministry of Defense will then determine how to specifically allocate the resources to the programs and investments planned for the following year.

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The Foreign Minister then clarified that the €14,9 billion represents the maximum amount that Italy could potentially use . The amount has therefore been "reserved," but this does not mean that the government has already decided to use the entire sum. The final amount will be determined in the coming months based on defense needs, eligible projects, and the economic feasibility of the European loan.

The 14,9 billion represents a maximum, not an expenditure already decided

The point clarified by Tajani is politically and financially significant. The request for a cap allows Italy to retain access to resources, preventing any unused quota from being allocated to other interested member states.

The actual amount requested, however, may be less than €14,9 billion. The government will have to evaluate which military programs already included in the national budget can be financed through SAFE and which solution is more cost-effective than the traditional issuance of government bonds.

The final decision will therefore have to take into account the operational needs of the Armed Forces, the commitments undertaken at NATO, industrial planning, and the conditions of Italian public finances.

Crosetto: "SAFE is an alternative to government bonds."

Guido Crosetto emphasized that, in its current form, SAFE does not automatically constitute additional military spending. For the Minister of Defense, it is primarily an alternative financing tool for items already included in the state budget.

Italy will therefore be able to use European loans instead of issuing ordinary Treasury bonds and Treasury credit certificates , evaluating which solution offers more favorable financial conditions.

According to Crosetto, the decision on the amount to use will be primarily a technical one: the government will have to compare the cost of long-term European loans with that of debt placed directly by the Treasury on the markets. The goal will be to finance already planned expenses while reducing the overall cost of the operation whenever possible.

The difference between funding and increasing military spending

The Defense Minister wanted to clearly distinguish between two plans. The first concerns the way in which already approved programs are financed: in this case, SAFE could replace a portion of the national public debt issuance.

The second plan concerns a possible overall increase in resources allocated to Defense . Such a decision would be political in nature and would require specific parliamentary and budgetary decisions, including the potential authorization of a higher deficit.

Joining SAFE, therefore, does not automatically lead to an increase in military spending. Rather, it allows for a change in the funding source for certain investments, using loans raised by the European Union instead of new bonds issued directly by Italy.

What is the European SAFE programme?

SAFE stands for Security Action for Europe . It is a European Union financial mechanism that makes loans up to a total of €150 billion available to Member States.

The founding regulation entered into force on 29 May 2025 and constitutes the first pillar of the European ReArm Europe plan, subsequently incorporated into the "Readiness for 2030" strategy. Its aim is to encourage urgent, large-scale investments in the European Defence Technological and Industrial Base.

They are not non-repayable contributions

SAFE resources are not free funding and do not function like non-repayable grants. They are long-term loans that must be repaid by the beneficiary countries.

The European Union raises the funds by issuing European bonds and then makes them available to interested countries at competitive terms. The distribution of resources depends on the requests submitted by the member states and their respective national investment plans.

The potential advantage for Italy therefore stems from the European Union's ability to finance itself on the markets and to transfer to member states potentially more advantageous conditions than those obtainable through national issuances.

Joint procurement to strengthen European industry

One of SAFE's main objectives is to encourage joint procurement in the defense sector . Generally, to access loans, programs must involve at least two participating countries, although the regulation temporarily allows operations carried out by a single country.

The rationale is to reduce the fragmentation of European military systems, increase the productive capacity of the continent's industry, and promote interoperability between the armed forces of different countries.

Jointly purchasing munitions, defense systems, or strategic technologies should also allow for greater economies of scale, faster delivery times, and better standardization of equipment.

From missiles to cybersecurity: what can be funded?

The European program covers a wide range of investments. Eligible sectors include munitions, missiles, artillery systems, ground combat vehicles, personal protective equipment, drones, counter-drone systems, and critical infrastructure protection.

SAFE can also support programs in military mobility, cyber capabilities, air and missile defense, naval systems, space technologies, strategic transport, air-to-air refueling, artificial intelligence, and electronic warfare.

For some technologies considered particularly sensitive, more stringent conditions are envisaged, primarily to ensure that the companies involved retain the ability to independently modify, update, and develop the purchased systems.

The restriction on components produced outside Europe

The regulation also contains requirements regarding the industrial provenance of materials. The aim is to prevent European loans from financing primarily production outside the Union's economic area.

Contracts must therefore respect precise limits on the value of components sourced from third countries. The measure aims to strengthen European production capacity, reduce strategic dependencies on foreign countries, and ensure greater autonomy in the maintenance and technological evolution of military systems.

The impact of the decision on Italian public finances

For Italy, the decision is particularly delicate due to its high public debt and the need to contain interest expenditure. Even though it was obtained through the European Union, SAFE remains a loan that must be repaid.

The assessment will not depend solely on military needs. The Ministry of Economy will have to compare interest rates, maturities, repayment methods, and the impact on public finances with the market conditions for Italian government bonds.

It is precisely on this basis that Crosetto's definition can be understood: SAFE can be considered a technical alternative to the issuance of BoTs and CcTs, but it does not represent money without consequences on debt.

The final decision is expected by December

The government will now have to define the plan to present to the European level, selecting the investments to finance and establishing the actual amount of the loan.

Reserving the €14,9 billion ceiling allows Italy to avoid preemptively forgoing available resources. However, by the end of the year, it will be clear whether Rome intends to use the entire sum or limit itself to a smaller share.

The choice will be crucial for Defense planning in 2027 and beyond, but also for the Treasury's financial strategy and for Italy's contribution to building a greater European industrial and military capacity.

SAFE at the heart of the debate on European Defence

The decision announced by Tajani places Italy within the broader process of strengthening European defense, initiated following the changing international landscape and increased geopolitical tensions.

The political issue, however, remains unresolved. On the one hand, the government aims to honor its commitments to its allies and support the modernization of the armed forces. On the other, it must prevent new military needs from compromising public finance objectives.

For this reason, the figure of €14,9 billion should be interpreted as a maximum available amount, not as an already authorized expenditure. A concrete decision will only be made after discussions between the Ministries of Defense, Economy, and Foreign Affairs, and after evaluating the financial conditions offered by the European program.