Rome may cut its €15bn SAFE loans by two thirds due to political pressure within the majority
Giorgia Meloni is facing mounting pressure over defence spending as NATO and EU commitments clash with domestic opposition and a tightening electoral race.
The shift became clear last week when Meloni threatened to scale back Italy’s participation in the EU’s €150 billion SAFE defence loan programme unless Brussels extended fiscal flexibility measures to help offset the impact of the Middle East energy crisis.
The move opened a rift with Defence Minister Guido Crosetto, a strong advocate of Italy’s defence boost, with local media reporting “shouts and slammed doors” during a cabinet meeting – although Crosetto publicly denied reports of tensions.
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