Rank #12 · Europe
Italy spent $48.1B on its military in 2025 — up 20% in real terms — the largest single-year jump in three decades and enough to push Rome above the 2% NATO threshold on SIPRI methodology. Spending is anchored by the multi-year Defence Programmatic Document and an industrial base led by Leonardo and Fincantieri.
The 2025 defence budget growth was funded mainly through the multi-annual Defence Programmatic Document (DPP) 2024-2026 and supplementary Ministry of Economic Development (MIMIT) procurement envelopes that Rome counts toward NATO defence spending. Italy reportedly attempted to include preparatory works for the Strait of Messina bridge in its NATO-reportable spending in 2025, drawing scrutiny in the SIPRI April 2026 fact sheet. Procurement absorbs roughly a third of the topline, with sustained outlays for the F-35 program (90 aircraft committed), the GCAP sixth-generation fighter, U212 NFS submarines, and the PPA multipurpose patrol vessels. Personnel costs remain compressed by a long secular decline in active-duty headcount.
Italy fields a tri-service force of about 165,500 active personnel — Army (~96,000), Navy (~28,000), and Air Force (~41,000) — supplemented by 109,000 Carabinieri operating as a fourth armed service and as a national gendarmerie. The Navy is the centerpiece of Italian power projection, operating the carrier Cavour, the new Trieste LHD (commissioned 2024), FREMM and PPA classes, and four Todaro-class submarines with two U212 NFS hulls under construction. The Air Force is transitioning to a mixed F-35A/B and Eurofighter fleet. Italy maintains a deployed presence in NATO eMTF Bulgaria, KFOR Kosovo, and UNIFIL Lebanon.
Italy hosts one of Europe's most vertically integrated defence industrial bases. Leonardo (state-influenced via MEF holding) leads in helicopters (AW101, AW149, AW249), electronics, and the Eurofighter consortium. Fincantieri builds for the Italian Navy and exports frigates (FREMM derivatives) to the US Constellation program and to Indonesia, Egypt, and Qatar. MBDA Italia covers missiles (CAMM-ER, Aster, Marte). Italy is a third equal partner in the UK-Japan-Italy Global Combat Air Programme (GCAP) sixth-generation fighter, with the joint GIGO agency stood up in 2024 and design phase contracts placed in 2025. Italy is a net arms exporter, with deliveries to Egypt, Qatar, and Turkey leading export licensing volumes.
Italy has no active combat deployments but maintains a heavy peacekeeping and forward-deterrence footprint. Rome leads UNIFIL in southern Lebanon (~1,000 troops), commands NATO's enhanced multinational Battle Group in Bulgaria, and contributes to the Aegis Ashore site at Deveselu indirectly via NATO IAMD. Italian frigates are deployed under Operation Aspides in the Red Sea against Houthi anti-shipping attacks, with Italian ships intercepting drones and missiles regularly through 2025. Italy participates in EU naval missions Atalanta (Indian Ocean) and Irini (Libya arms embargo). Domestic exposure includes Mediterranean migrant interdiction and counter-terrorism, both led by the Carabinieri and Guardia di Finanza.
On 27 April 2026, SIPRI confirmed Italy's 2025 spend at $48.1B, a 20% real-terms increase. In June 2025 Rome signed up to the new NATO 5%-by-2035 spending pledge (3.5% core + 1.5% defence-related). The 2025 Defence Programmatic Document, approved by Parliament in October 2025, formalised additional GCAP funding and the second tranche of the U212 NFS submarine program. Italy and Germany finalised the joint MGCS/main battle tank cooperation framework in early 2026, and the first Italian-built F-35B from Cameri FACO was delivered to the Italian Navy in March 2026.
Italy spent $48.1 billion on its military in 2025 according to SIPRI — a 20% real-terms increase over 2024 and the country's 12th-place ranking globally. On NATO methodology the figure is slightly higher, putting Italy just above the 2% of GDP target for the first time since 2014.
On NATO methodology, yes — Italy hit roughly 2.0% in 2025 after years of underperformance. SIPRI puts the share at 1.9% under its tighter definition. Italy has signed up to the new NATO target of 5% of GDP by 2035, including 3.5% on core military spending.
Leonardo (helicopters, electronics, Eurofighter), Fincantieri (warships, including FREMM and U212 submarines), MBDA Italia (missiles), Avio (rocket motors), and Elettronica (EW systems). Leonardo is the European prime in the GCAP sixth-generation fighter program with BAE Systems and Mitsubishi.
The Global Combat Air Programme is a UK-Italy-Japan trilateral developing a sixth-generation manned fighter for entry-into-service around 2035. Italy is a third-equal partner via Leonardo. The GIGO joint agency was established in late 2024 and the first design contracts were placed in 2025.