Italy Defense Multi-Year Planning Document
Overview
Published in October 2025, the Italian Ministry of Defense (MoD) Multi-Year Defense Planning Document (2025–2027) allocates total funding of approximately $36 billion in the multi-year procurement cycle for defense modernization programs in alignment with NATO and EU objectives. Funding is for both existing programs (e.g., F‑35, FREMM, NH90 MCO) and new capacity projects (GCAP, mine warfare vessels, space access, precision fire systems). A core capital investment is the Maritime Multi-Mission Aircraft (M3A) Program, a long-range anti-submarine and anti-surface aircraft for maritime surveillance required under NATO commitments. Italy’s strategic flagship program is the GCAP Tempest 6th Generation Fighter. The Ministry of Enterprises and Made in Italy (MiMiT) provides complementary annual funding (around $3.5–3.6 billion) for defense-related industrial program in support of strategic national companies.
Service Allocations and Programs
Diving into specific segments, of note is the initial allocation of $125 million for the development of operational space capabilities, including just under $20 million for small payload launchers and suborbital operations and initial funding soon to be earmarked for the feasibility and preliminary development of the CubeSat constellation (IRIDE Earth observation program and HERMES mission). Approximately $1.3 billion is available for the modernization of Italian Army capabilities, including light multirole vehicles, new tactical vehicles for special forces and the Carabinieri Force, HIMARS rocket artillery systems and support, precision strike missile capability development, and counter rocket, artillery, mortar (C-RAM) and counter UAS systems. More than $5.3 billion in resources are dedicated to the modernization of the Italian Navy which remains a major focus.
Programs include NextGen aircraft carrier design support, U212 Next Future Submarine (NFS), maintenance & operational support for the Elettra SIGINT vessel, Joint Maritime Multi Mission System (J3MS / CLARA), FREMM frigates EVO modernization and support, new generation mine warfare vessels, and landing ship (LXD) amphibious vessels starting in 2027. Italian Air Force programs receive allocations for current fleet sustainment and future capabilities including GCAP, F-35 (expansion and sustainment), Eurofighter Typhoon (sustainment and evolution), training and simulation infrastructure, and pod and guided weapons packages. About $280 million are dedicated to support systems across services such as the Combat Dome network & multi domain command & control (C2) enhancement; national infrastructure modernization and data center enhancements; and electronic warfare (EW), imagery intelligence (IMINT) and HUMan INTelligence (HUMINT) upgrades. Sustainment, Logistics & Maintenance in Operational Condition (MCO) of current systems receive just more than $1.5 billion.
Research & Development
Resources for R&D are increasingly important, driven by EU mechanisms and high-tech priorities, namely AI, cyber and space. European collaborative programs act as a multiplier, allowing Italy to access larger funding pools and co-develop strategic capabilities. Italy is among the top beneficiaries of European Defense Fund (EDF) Projects. In 2023, Italian companies were awarded 35 EDF projects (54 total) for a total project pool of $1.07 billion. Italy’s defense champion Leonardo obtained 19 funded projects including EuroHAPS (high-altitude platforms), EU-Guardian (air defense systems), 5G COMPAD (military communications), TIRESYAS Project (EDF WP2022). Part of $710 million allocated to Leonardo-led EDF activities focus on advanced electronics across multiple domains, such as the ARCHYTAS AI Project to develop next-generation AI accelerators for defense applications.
EU Capability Building
European collaborative capability development overlaps with R&D, focusing specifically on joint European capability building, often scaling prototypes into operational systems. These programs are designed to enhance interoperability and strategic autonomy, such as the EDF-supported naval program involving Italy, European Counter-UAS System and Integrated Space Situational Awareness System project critical for defense and dual-use applications. The EDF 2026 work program alone allocates $1.2 billion annually for collaborative R&D and capability development.
Challenges
The EU and Italy’s “Buy European” strategy is designed to strengthen strategic autonomy and the European defense industrial base, including a target that 60% of defense procurement be sourced within Europe. This policy risks limiting market access for U.S. firms, creating structural barriers through EU-favored tender rules, technology transfer requirements, and funding mechanisms that prioritize European firms.
U.S. firms seeking to enter the Italian defense market are strongly advised to work through a local agent, distributor or representative. Attending trade shows in the region is an excellent opportunity to network with local distributors and partners. The U.S. Commercial Service (CS) in Italy offers counseling, export assistance and resources to identify suitable partners. For additional information on Italian defense procurement and CS services, please contact: Maria Calabria, Aerospace and Defense Trade Specialist, Maria.Calabria@trade.gov, +39 06 46742427.