Italy set to propose a European guarantee scheme aimed at unlocking up to €200 billion

Italy is set to propose a European guarantee scheme aimed at unlocking up to €200 billion in investments for the defence and aerospace industries. The info comes via Reuters (gated) citing sources familiar with the matter.

• Economy Minister Giancarlo Giorgetti will present the plan at an EU finance ministers’ meeting in Brussels
• EU is exploring ways to strengthen defence spending through joint borrowing, EU funds, and an expanded role for the European Investment Bank (EIB)
• Decisions expected by June
• Italy is particularly focused on minimizing the impact on its already strained public finances
• proposed scheme, named the European Security and Industrial Innovation Initiative, would use €17 billion in European guarantees to catalyze the larger investment over a period of up to five years

EUR has found a tailwind from the proposals out of Germany to spend on infrastructure and defense. This would seem likewise, at the margin.

This article was written by Eamonn Sheridan at www.forexlive.com.