The European Union (EU)'s plan to increase defense spending across the bloc has encountered challenges in Italy, where there are significant concerns regarding the sustainability of public debt, said an Italian professor of European policy. At a special EU summit in Brussels in early March, European Commission President Ursula von der Leyen proposed the "ReArm Europe" plan to mobilize 800 billion euros to create "a secure and resilient Europe."
However, the proposal to provide a 150-billion-euro loan to member states for defense investments was met with opposition from countries like France, Italy, and Spain.
Currently, Italy's public debt is about three trillion euros, which is over 135 percent of its GDP.
As a result, Italian scholars have warned that the "ReArm Europe" plan could raise concerns about the sustainability of Italy's public debt.
"The Italian government supports strengthening European defense, but it does not fully agree with the approach proposed by the 'ReArm Europe' plan, which focuses on enhancing the national defense of EU member states and allowing them to take out loans, rather than strengthening European defense as a whole," said Valentina Meliciani, director of the Luiss Institute for European Analysis and Policy at Luiss Guido Carli University.
"Clearly, Italy has plans to repay its public debt in the coming years. Therefore, if the budget needs to be adjusted to increase loans for defense spending, there may be concerns about the sustainability of Italy's public debt. This worry already exists within the Italian government, with Prime Minister Giorgia Meloni expressing significant worries about debt sustainability. Other ruling parties, such as the Lega Nord, have even greater doubts about the European defense plan," she said.
According to a statement published by the European Commission, the "ReArm Europe" plan is a comprehensive set of proposals aimed at unlocking financial resources to support national defense investments both in the short term and over the next decade.
The initiative consists of five key measures designed to strengthen Europe's defense capabilities and bolster military support for Ukraine.

EU's defense plan to rearm Europe faces setbacks in Italy: policy expert

EU's defense plan to rearm Europe faces setbacks in Italy: policy expert

EU's defense plan to rearm Europe faces setbacks in Italy: policy expert