Following years of financial instability, the Italian Armed Forces now lack competitiveness and preparedness on the technological aspect. According to the think tank Centro Studi Internationali (CeSI), this struggle has been mostly due to funds for procurement given to fulfil modernization in navy and air forces but not for the Army. The procurement plans set out for 2021-2023 report a provision of 73.2 billion of Euros for three years, but in practice, the 2021 budget consists of a 15% reduction compared to 2020. Expectations emphasize that the trend is going to worsen for 2022 and 2023.
The Army is not able to deliver upgrades of old capability systems and even ensure that military programs are completed in the requested timing. According to the 2014 NATO summit, the impact of the defence budget on the national GDP should be 2%, while Italy defence spending will fall from 1.4% to 1.23% by 2023. Consistent cuts on spending cause the entire system of procurement of Infantry Fighting Vehicles (IFV), Medium Multi-Purpose Tactical Vehicle (VTMM), Light Multirole Tactical Vehicle (VTLM), and other special forces tactical vehicles to fall apart up until the end of the decade.
On the brighter side, according to Pierluigi Barberini, Defence and Security Analyst at CeSI, something is moving at the political level as well, which would allow for a long-term perspective to be introduced in the budgetary system towards the military sector. “[…] higher and more stable allocation of resources over the medium to long term” would allow for Army modernisation programs to no longer be delayed in the medium term. Barberini finds an explanation for the flow of budget in the Army as the renewed awareness of the ruling class that security threats are no longer neglectable.
The procurement of national warfare is ensured by the Italian firm CIO, a consortium between Iveco and Oto Melara. New armoured fighting vehicles (Veicolo Blindato Media Freccia), 8×8 Centauro II mobile gun system, and upgraded Ariete Main Battle Tank (MBT) are indeed supplied nationally.
The modernisation program of VBM armoured fighting vehicle entails the reconfiguration of most mechanical parts (engine, suspension, wheels, parts of the electrical system, firefighting system, optronic, radios, internal communications, and turret electronics) and its completion is expected in three years. In addition, the VBM Combat PLUS is equipped with increased firepower (30mm gun in an unmanned turret) whose upgrade was long hoped for, as the previous program was cancelled.
More than a hundred Centauro II antitank vehicles will be delivered from 2024 to 2030, including both 2.0 and 3.0 configurations. The first tranche of vehicles will present the 2.0 configuration that is essentially an upgrade in operational functions, while 3.0 also includes developments of the weapon system.
Ariete Main Battle Tank is being tested by the Italian Army to demand mid-life upgrades to the engine, tanks’ propulsion and breaking systems, final reduction gears, suspension, fuel system, crawlers, and waste water system. Moreover, technological parts such as new optical systems, radios and navigation equipment are also going to be modernised.
The total expenditure for those programs is expected to weigh on the procurement plan more than the allocation approved by the Italian Ministry of Defence (around 262 million Euros), meaning that some vehicles may not be even upgraded.
