Crosetto presses Giorgetti on Safe, the Security Action for Europe program to finance defense and security expenses.
“I wrote a letter to Giorgetti to find out what the decision is regarding” the use of European Safe funds, Defense Minister Guido Crosetto said yesterday, adding that he is “awaiting a decision” from the Ministry of Economy and Finance. That is, from his colleague Giancarlo Giorgetti, head of the Treasury. “By the end of May,” Crosetto reminded, “a decision should be made whether to access Safe or not.” Italy requested in recent months to be admitted to loans totaling 14.9 billion euros from the EU under the Safe program. The mechanism provides that the EU raises funds on the capital markets and makes them available to member states in the form of long-term loans, based on their investment plans for the European defense industry.
At the same time, however, the government is dealing with a double challenge intertwining defense, public finances, and the energy emergency. On one hand, Crosetto urges the Ministry of Economy to decide on Italy’s participation in the European Safe program; on the other, Prime Minister Giorgia Meloni seeks flexibility margins with Brussels to finance measures against rising energy costs (fuel costs being one of the main concerns) and the increase in bills.
All the details.
CROSETTO’S PRESSURE ON THE TREASURY
Italy must decide by the end of May whether to resort to European loans under the Safe program. Already at the beginning of the week, Minister Crosetto clarified that the final decision must come from the Treasury headed by Minister Giancarlo Giorgetti. The decision is taking time, so much so that the Defense Minister has intensified pressure on the MEF in recent weeks to obtain a response.
According to what was reported today by Messaggero, the Defense Minister sent two letters to the MEF, the last on Wednesday, to ask for clarifications on the government’s stance regarding the European funds. “I am neither optimistic nor pessimistic: I am waiting for an answer,” Crosetto said speaking with reporters.
As already mentioned, our country is allocated a share of 14.9 billion euros in concessional loans, among the most substantial assigned so far. The resources are aimed at accelerating the modernization of the armed forces and the acquisition of weapon systems, cyber technologies, and priority strategic capabilities, in line with the needs of the national defense apparatus.
WHAT THE SAFE PROGRAM PROVIDES
The total fund made available by Brussels amounts to 150 billion euros and was designed to “accelerate defense readiness.” On February 17, EU finance ministers approved the national plans of eight other member states, including our country, for a total of 74 billion euros in funding, thus about half of the 150 billion euros available from the Safe program. With the final approval of Ecofin for concessional defense loans, Italy will benefit from an intervention of about 14.9 billion euros.
According to what the Ministry of Economy explained during a question time at the Chamber, “almost all of the spending programs” that Italy intends to finance through Safe concern contracts already existing and still in execution.
GIORGETTI’S DOUBTS ABOUT SAFE LOANS
Despite pressure from the Ministry of Defense, the MEF continues to maintain a cautious position on the use of European loans.
During the question time on Wednesday at the Chamber, Minister Giorgetti recalled that Safe “is and remains a financing system certainly not at zero cost.” While acknowledging “the advantage of allowing deferral over time and favorable rates,” the Minister of Economy emphasized that the program still implies “the obligation of repayment and the need to comply with rules that limit the discretion of participating states.”
Not to mention that the MEF’s assessments are intertwined with the situation of Italy’s public accounts and the ongoing excessive deficit procedure initiated by the European Commission, which reduces maneuvering space on the deficit.
THE EXECUTIVE’S DISCUSSION
Meanwhile, yesterday afternoon, the main government representatives met at Palazzo Chigi on the sidelines of the Council of Ministers, and a first orientation emerged directly from Prime Minister Giorgia Meloni who, during a brief discussion with Matteo Salvini, Antonio Tajani, Crosetto, and Giorgetti, indicated the government’s priorities for the coming weeks: to curb rising energy costs.
For his part, the Defense Minister reportedly recalled the need to respect the commitments made by Italy within NATO and to guarantee the necessary resources to allocate over 12 billion euros to increase defense spending by 0.5% of GDP until 2028. Without resorting to Safe funds, the goal risks becoming more difficult to achieve.
