Italy’s Nato defence spending pledge clashes with mounting debt
Rome’s public debt-to-GDP ratio will soar to near-record 148% if it meets promises to allies through extra borrowing
Rome’s public debt-to-GDP ratio will soar to near-record 148% if it meets promises to allies through extra borrowing

Pledge to raise defence spending to 5% of GDP would unleash hundreds of billions of euros

Lawmakers squabbled over how to allocate limited additional resources

Italian government wants to add decades-old project to increased Nato spending pledge

Washington to become more indebted than European nations known for fragile public finances for first time this century

At the heart of the dispute is buying US weapons with EU money

Berlin plans to meet alliance’s new 3.5% of GDP target for core military outlay at least six years ahead of schedule