Opportunities will continue to emerge in the coming years, as Italy juggles with budgetary constraints and new threat types, with a likely emphasis on unmanned vehicles, innovative subsystems, and next-generation services.”
–Nicolò Donà dalle Rose
In a piece recently published on Global Risk Insights, Avascent Analyst Nicolò Donà dalle Rose reviewed Italy’s defense procurement spending this year as outlined in new budget documents published ahead of last week’s NATO summit in Warsaw. The documents showed that defense procurement spending will drop by 3 percent to €4.72 billion in the ongoing fiscal year, as orders of the F-35 have been dropped from 131 to 90 aircraft and allocations for land vehicle programs have dropped to just €21 million.
The piece notes that there are few political scenarios that would see Italy significantly strengthen defense spending in the near-term, and Italy’s economic stagnation, debate surrounding immigration, and domestic political uncertainties will continue to lead the government to de-prioritize any hikes in defense spending at the benefit of domestic socio-economic relief. The piece concludes however that overall, players who will successfully shape the way in which Italy tackles emerging challenges, such as migration and terrorism, will be able to establish a stronger footprint in the Italian market, despite a challenging budgetary environment.
To read the full article, click here: Italy’s defence outlook for 2016.