This initiative intends to utilize €17 billion in European guarantees to stimulate investments over the next five years.

The proposed guarantee fund is estimated to be around €16 billion, which could catalyze an additional €200 billion in industrial investments, following successful models like InvestEU.

Giorgetti will present Italy's proposal for the European Security and Industrial Innovation Initiative at the Ecofin meeting in Brussels on March 10, 2025.

Italy supports these discussions while aiming to mitigate the impact of increased defense spending on its public finances, as state guarantees can affect the budget.

The European Union is exploring options to enhance defense spending through joint borrowing and a more significant role for the European Investment Bank, with decisions expected by June 2025.

Giorgetti emphasized that Italy is committed to strengthening Europe's defense without compromising healthcare and other essential public services.

The proposed guarantee fund is expected to optimize resource use while engaging private capital with minimal public spending.

The proposed guarantee scheme could attract investments totaling up to €200 billion, according to Giorgetti.

The euro has received support from similar proposals in Germany aimed at investing in infrastructure and defense.

Italy's proposal also seeks to enhance the participation of Member States in the InvestEU program to improve the effectiveness of EU guarantees in attracting private capital.

Italy's Economy Minister Giancarlo Giorgetti announced a new defense plan aimed at creating a guarantee fund to enhance national and European defense capabilities.

The initiative aims to mobilize private investments in defense, security, and protection sectors without increasing public debt.