Ammon News - Italy ​may not be able to raise defence spending as planned due to growing ‌economic and public finance difficulties plus the need to counter surging energy prices, a government document said on Thursday.

Prime Minister Giorgia Meloni's government cut its growth projections on Wednesday and hiked forecasts for the budget deficit and public debt, reflecting surging ​energy prices and turmoil in the Middle East.

The Treasury's multi-year budget plan (DFP) issued on Thursday underlined ​the downside risks to the outlook and said Italy now had little fiscal ⁠room for manoeuvre given its need to help families and firms deal with the energy shock.

"As ​a result, it will be necessary to re-define our priorities and re-programme the planned spending increases in ​other areas, including defence," Economy Minister Giancarlo Giorgetti said in an introductory note to the DFP.

Italy, along with most other NATO European countries, has agreed to a call from U.S. President Donald Trump for an increase in defence ​and security spending to 5% of GDP by 2035.

Reuters