After heavy cuts in Italy's defence budget in the past two years, the new government proposes to raise spending in 2007 to €14.5 billion ($18.4 billion) - up from the €12.1 billion allocated for 2006. Defence ministry sources say the 2007 allocation will enable Italy to meet its international defence programme commitments, but will not be enough to launch new projects.

A €74.5 million instalment is due next year for four Boeing 767 tankers, and €81.3 million is payable for Lockheed Martin C-130Js and €139 million to support participation in the Joint Strike Fighter. Instalments and interest on deferred payments for the Eurofighter Typhoon will amount to €450 million.

Meanwhile, Italy has accepted its first Alenia C-27J after the completion of air force tests and is to receive 12 air-to-air refuelling-capable aircraft by 2008. Deliveries had been deferred to free production slots for Greece.

C-27J 
© Alenia   
Italy has accepted its first Alenia C-27J and will receive 11 more by 2006



Source: Flight International