Headlines
Italy plans 2.4 billion euros investment in frigates, document shows
Published by Global Banking and Finance Review
Posted on December 16, 2025
Last updated: January 7, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 16, 2025
Last updated: January 7, 2026
ROME, Dec 16 (Reuters) - Italy's government has asked parliament to approve a 2.4-billion-euro ($2.82 billion) investment over 15 years for the maintenance and modernisation of its frigate fleet, a parliamentary document seen by Reuters showed.
The plan comes as Italy moves to gradually increase its defence spending to comply with higher NATO targets, after the alliance members agreed to a U.S. demand to boost their annual defence budgets to 5% of gross domestic product.
The programme, to 2039, is aimed at "the maintenance of operational conditions and logistical support" as well as the so-called 'mid-life upgrade' of FREMM-type frigate naval units, the document said.
It stressed the need to ensure Italy continues to operate vessels capable of effectively monitoring maritime areas of national interest.
FREMM frigates are multi-purpose warships jointly designed by Italy’s Fincantieri and France's Naval Group. Last year, the shipbuilding joint venture, along with defence group Leonardo, won a contract worth about 1.5 billion euros to build two frigates for Rome.
The document noted that cooperation with industry is expected to continue under existing arrangements, including through the European procurement agency OCCAR (Organisation for Joint Armament Co-operation).
The new investment will be funded by both the Italian industry and defence ministries. The programme is described as "vital" and delivering "clear benefits in one of the sectors of highest strategic value for defence."
Parliament's defence committees must approve the request by January 12, according to the lower house website. Other spending plans submitted to parliament involve drones, submarines and remotely piloted aircraft for the airforce.
Opposition parties have criticised the government's new defence spending plans - worth more than 3 billion euros - arguing they were being pushed through despite an inadequate investment by the government in the country's social services.
"This seems to me like a real slap in the face of Italian families. A truly unpalatable Christmas gift," Nicola Fratoianni, a lawmaker from the Green-Left Alliance party said on Tuesday.
($1 = 0.8498 euros)
(Reporting by Angelo Amante, editing by Giulia Segreti and Ros Russell)
Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period, often used as an economic indicator.
Investment is the allocation of resources, usually money, in order to generate income or profit. It can take various forms, including stocks, bonds, real estate, and business ventures.
A parliamentary document is an official paper produced by a legislative body, containing information, proposals, or requests that are presented for discussion or approval.
NATO targets refer to the defense spending goals set by the North Atlantic Treaty Organization for its member countries, aimed at ensuring collective security and military readiness.
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