ANDY NATIVI / GENOA
Much of the funding increase will go on higher personnel costs and operations
Italy has increased its defence budget by 6% for 2002 as it moves towards ending conscription and introducing all-volunteer armed forces by January 2007.
Next year, 1.46% of the gross national product (GNP), or €18.85 billion ($16.8 billion), will be allocated to defence, compared with €17.78 billion this year. This includes money allocated for items not directly for defence, including pensions, the Carabinieri paramilitary force and some external functions. Direct defence spending is to be boosted by 7.1% to €13.52 billion. Much of the funding increase will not be aimed at capital spending, instead going on increased personnel costs due to new contracts and the hiring of an increasing number of volunteers to replace the cheaper draftees.
Of the direct defence spending, €6.6 billion is earmarked for personnel, €3.6 billion for operations, training and maintenance and €3.35 billion on procurement and modernisation programmes.
Much of the money will benefit the air force, which receives €1.28 billion compared with €0.9 billion for the navy and €880 million for the army. Funding includes €31 million for the army's AgustaWestland A129 Mangusta upgrades.
The ministry of defence says the Lockheed Martin F-16 leasing deal is moving ahead and will start in 2003; acquisition of Lockheed Martin C-130Js will be completed by 2005; a new reconnaissance pod will be acquired for the Alenia/Embraer AMX fleet and the acquisition of four Boeing 767 Tanker-Transports will be completed in 2009.
The air force will also receive additional RaytheonAGM-88 HARM anti-radiation missiles to replace depleted stocks.
Source: Flight International
