WHAT YOU NEED TO KNOW
  • Italy spent €875 million on GCAP in 2026, far above the €275 million forecast in last year’s budget document.
  • Funding for new Army vehicles and Ariete tank upgrades fell to €177 million, compared with a previous €425 million forecast.
  • Italy plans to acquire 1,050 Lynx vehicles and 272 Panther tanks through a €23 billion agreement.
  • The politically contentious budget forecasts €696 million for GCAP and €872 million for three tank and vehicle programs in 2027.

Italy sharply increased spending on the GCAP fighter program in 2026 while reducing funding for new Army tanks and fighting vehicles, according to newly released budget documents. The figures reveal a significant shift from the spending levels forecast only last year.

Rome spent €875 million, or $970 million, on GCAP in 2026. The sixth generation fighter program brings Italy together with the United Kingdom and Japan.

That total represents a substantial increase from the €625 million spent last year. It also far exceeds the €275 million that planners projected for 2026 in the previous budget document.

The updated figures appear in Italy’s much delayed 2026 defense budget, which the defense ministry sent to parliament this week for approval. The available section provides a breakdown of costs by program, although the portion listing total expenditures was not seen by Defense News.

GCAP received another major boost in July when the three participating nations awarded a £4.6 billion, or $6.1 billion, development contract to the national companies building the aircraft. The contract followed the United Kingdom’s release of delayed funding.

The 18 month contract went to Edgewing, the industrial consortium grouping the companies involved in fighter construction. Germany is reportedly considering joining the effort after the collapse of its plan to develop the FCAS fighter with France.

Italy’s latest budget document also provides a forecast for the next stage of GCAP funding. It predicts that Rome will spend €696 million on the fighter program in 2027.

While GCAP funding climbed, spending on heavy Army vehicles came in well below earlier expectations. That reduction arrived as Italy continued work with Rheinmetall on a new main battle tank and fighting vehicle.

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The vehicle program calls for the delivery of 1,050 Lynx vehicles and 272 Panther tanks under a €23 billion agreement. Italian defense minister Guido Crosetto said in July that Italy would cut 18% in costs from the program.

The new budget puts combined 2026 spending on the Lynx and Panther programs, along with upgrades to Italy’s ageing Ariete tanks, at €177 million. That is below the €281 million spent last year and dramatically lower than the €425 million forecast for 2026 in the previous document.

The funding squeeze is expected to be followed by a considerable increase next year. The 2026 budget forecasts spending of €872 million across the three vehicle and tank programs in 2027.

Although the total expenditure section was not available, the individual program outlays listed for 2026 add up to €12.8 billion. That represents an increase of €307 million from the €12.5 billion total produced by adding the programs included in the 2025 budget.

Italy’s F-35 program also received less money than planners had forecast. The program, which involves the eventual purchase of 115 aircraft, cost Italy €782 million in 2026 instead of the €961 million projected last year.

The budget has become the center of heated political debate as military spending faces growing scrutiny before Italy’s national elections next year. Incumbent right wing prime minister Giorgia Meloni is seeking reelection.

Meloni’s arguments supporting defense spending have faced criticism from political allies and opponents. Those critics include Matteo Salvini, leader of the League party within Meloni’s coalition, and Robert Vannacci, a former Army general running a new party to Meloni’s right.

The opposition Five Star party has also criticized military spending, claiming that scarce funds are being diverted from health spending. Students participating in a wave of street protests across Europe have listed cuts to arms spending among their main objectives.

Resistance to arms spending has coincided with growing opposition to supplying weapons to Ukraine. Meloni has supported that policy since her election in 2022, leaving the budget fight tangled with a broader political dispute over Italy’s military commitments.