# Italy Scales Back EU-Backed Defense Spending

Italy’s Cabinet reportedly agreed to reduce expected defense spending under the EU National Escape Clause (NEC) to about €14 billion, down from an earlier estimate of €21–22 billion. Separately, Italy’s planned request for low-cost loans through the EU Security Action for Europe (SAFE) program is €8 billion, below the previously intended €14.9 billion request. These changes could reduce or delay funding available for Italian and European defense programs; the signal identifies no open solicitation.

- Contractors should account for the lower reported NEC estimate and planned SAFE request when forecasting the timing and scale of potential Italian defense opportunities.
- The government’s budget publication and decisions on the NEC and SAFE request are the specific developments that could clarify available funding.
- Leonardo and Fincantieri are relevant to the wider SAFE market context as builders of FREMM frigates reportedly being purchased by Portugal with SAFE support.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Grants & Funding
**Published:** October 02, 2026

### Government Entities
- Government of Italy
- Italian Ministry of Defense
- European Union (EU)
- North Atlantic Treaty Organization (NATO)

### Vendors
- Leonardo (FREMM frigate builder)
- Fincantieri (FREMM frigate builder)

### Key Quotes
> I believe SAFE is the first, real useful measure that Europe has come up with.
> — Lorenzo Mariani, CEO of Leonardo

### Sources
- [Ukraine war fatigue fuels defense-spending downgrade plan in Italy](https://www.defensenews.com/global/europe/2026/10/02/ukraine-war-fatigue-fuels-defense-spending-downgrade-plan-in-italy) - Defense News