On May 15, EU finance ministers will discuss a proposal by Italian Minister Giorgetti for a joint debt issuance to finance strategic investments in defense, security, aerospace, and dual-use technologies. The proposal addresses the limitations of individual national budgets and the EU budget in providing long-term funding for these critical sectors.
Italy estimates that a public guarantee of €16.7 billion could mobilize up to €200 billion in private investments over the next three to five years. The plan involves a multi-tranche European guarantee structure, with member states covering initial losses, the EU covering intermediate losses, and the market guaranteeing senior tranches. This structure aims to optimize the use of national and EU resources to meet Europe's urgent strategic investment needs.