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Italy Hits NATO’s 2% Defense Goal by Turning 1.5% of GDP Into 2% on Paper

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Italian military personnel during exercises / Open-source photo
Italian military personnel during exercises / Open-source photo

In Rome, €14B in phantom defense items were reported to NATO, claiming a 2014 commitment finally fulfilled

Although NATO's 2014 pledge for members to spend 2% of GDP on defence has been in place for years, several countries have failed to meet it including Italy, which reached only 1.49% in 2024.

Moreover, Italy initially did not plan to meet the target in 2025 either, budgeting €30.5 billion for defence, equivalent to about 1.5% of GDP. Yet in its report to NATO, Italy suddenly stated it will spend exactly 2%.

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Italian military personnel during exercises
Italian military personnel during exercises / Open-source photo

No public announcement of a larger defence budget was made by the government. Instead, a published Defence Ministry plan for force development covering 2025–2027, with associated financial figures, revealed how Italy achieved the increase.

Under NATO accounting rules, Italy's 2025 defence budget is reported as €45.315 billion more than €15 billion higher than previously stated, which accounts for the extra 0.5% of GDP and brings the total to 2%.

Carabinieri are part of Italy’s armed forces but belong to the police forces
Carabinieri are part of Italy's armed forces but belong to the police forces / Open-source photo

But only part of those expenditures is itemised in detail, and that portion was mostly already known. That detailed slice totals €31.298 billion, only about €2.1 billion more than in 2024. To boost the headline figure to NATO's 2% target, the Defence Ministry included spending on the Carabinieri, who perform law-enforcement functions.

Another €14.017 billion is tucked into two broad items: military mobility, with no specification of what it covers, and cybersecurity, which likely accounts for only a small fraction of that sum. These steps are documented by the Italian outlet Geopolitica.

Categories of Italian defence expenditure
Categories of Italian defence expenditure / Open-source image

From Defense Express's perspective, the question of whether Italy's armed forces will fight with accounting entries in a crisis can be set aside; more important is NATO's own breakdown of member spending for 2025. According to that report, Italy's budget composition is: 42.8% personnel costs, 29.6% operations, 25.7% procurement and development, and only 1.9% for infrastructure.

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