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Thursday, November 18, 2010

Italy special: Italian defence programmes hit by budget squeeze

Eurofighter TyphoonAlthough the recently presented 2011 defence budget has revealed a planned €266 million ($370 million) increase in spending, the total €3.45 billion figure requested by the Italian defence ministry and ministry of economical development could be at risk, according to defence analysts.

The defence ministry's request, which has yet to be approved by parliament, contains an overall 18.2% cut in its operational, maintenance and training budgets.

The move will further reduce the efficiency of the Italian armed forces, and for the first time is expected to hit out-of-area operations, while personnel costs are on the rise.

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