Italy

There is uncertainty but optimism about the near future among domestic non-ferrous metals operators.

In recent decades, Italy has seen a decline in such sectors as information technology and telecommunications, and has significantly downsized in others such as household appliances. It is experiencing a profound crisis in what were once two of Italy’s leading industries, namely automotive and steel. An indirect consequence of this has been the transformation of the industrial policy map and incentive system, affected by interventions that are sometimes not continuous or are modified year after year and perpetually conditioned by identifying financial coverage, as demonstrated by latest developments in Transition 4.0 and 5.0 plans.

The current state of affairs also reflects latest government dynamics. Over 40% of the Ministry of Enterprises and Made in Italy’s 2026-2028 budget (Euro 10.29 billion out of a total of Euro 25.16 billion) has been allocated to the development of frigates, fighter jets and helicopters. This ministry is the primary channel for financing defence investments, starting with those made as part of Italy’s participation in NATO. Over the next three years, defence will absorb 40.9% of the entire budget. Italy is taking an active role in increasing defence investment, fostering greater industrial integration and supporting joint research & development programmes.

The focus on this area is constantly growing, with the goal of reaching 5% of GDP by 2035, divided into 3.5% to finance core defence capabilities and 1.5% for security-related activities, including innovation and strengthening the industrial base. A final positive note is employment, which has sky-rocketed since 2020.