Italian coalition faces disputes on EU recovery plan and defense fund amid economic growth

Italy's governing coalition is navigating policy disagreements over defense spending and European Union recovery funds while domestic economic figures show modest expansion.

Foreign Minister Antonio Tajani announced plans to request €14.9 billion from the EU's Safe defense purchasing initiative. However, coalition partner Lega insisted that any such commitment requires prior parliamentary approval. Concurrently, a dispute concerning EU-mandated tenders for Intercity train services has stalled progress on the National Recovery and Resilience Plan decree in the Chamber of Deputies, jeopardizing between €1 billion and €3 billion in funding.

Despite legislative friction, national statistics agency Istat reported that Italy's gross domestic product expanded by 0.2% in the second quarter, matching quarterly growth in France and Germany.

Sources: Corriere della Sera, Il Sole 24 Ore.