Italy to request 35 billion euros from EU SAFE program

Italy is preparing to present a plan to the European Union to utilize resources from the SAFE (Security Action for Europe) program. While initial discussions regarding the loan amount have fluctuated, reports indicate the Italian Ministry of Economy and Finance intends to request 35 billion euros.

The proposed allocation includes 21 billion euros for defense and security, and 14 billion euros for the environment and energy transition. The defense portion is expected to address critical needs, such as the development of a national drone supply chain for aerial, maritime, and terrestrial use, following lessons learned from conflicts in Ukraine and the Middle East.

The SAFE program offers advantageous financing terms for highly indebted nations like Italy, including repayment periods of up to 45 years, a ten-year grace period, low interest rates, and VAT exemptions on financed purchases.