Italy plans to spend 8.2 billion euros on new tanks, sources say

An Italian parliamentary committee approved on Tuesday a government plan worth some 8.2 billion euros ($8.86 billion) to buy new-generation tanks and revamp the army's ground forces, two sources close to the matter said.

The plan is part of a broader initiative by the government of Giorgia Meloni to boost defence procurement as Europe and NATO grapple with heightened geopolitical uncertainty.

According to a parliamentary document seen by Reuters, the programme will run from 2025 to 2038. Some 5.4 billions have already been earmarked, while arrangements to finance the remaining 2.7 billion have yet to be established.

"The programme relates to the acquisition of heavy component platforms with special reference to the new generation Main Battle Tank (MBT)," the document said.

Italy's Leonardo and Germany's Rheinmetall said in July that developing the Italian MBT would be a priority for the joint venture they launched this month.

The parliamentary document makes no direct mention of the two firms, but one of the sources said the joint venture - named Leonardo Rheinmetall Military Vehicles or LRM - was expected to be the project's key industrial partner.

The Panther KF51 designed by Rheinmetall will provide the basis for the MBT to replace the Ariete tank, which was produced in the 1990s. Last year, a ministry source told Reuters Italy had some 200 Ariete tanks, of which only 50 were fully operational.