Italy however has limited budget leeway, as the government already sees debt rising through 2026 to almost 138% of GDP due to the lingering effect of a costly state-funded home renovation scheme, the so-called Superbonus, even though it has been largely phased out.

Any increase in national defence spending should also be aimed at boosting economic growth, Italian Economy Minister Giancarlo Giorgetti said on Friday, as European states grapple with U.S. pressure to shoulder the costs of their own security.