Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Italy's Defense Spending Dilemma
Italian Prime Minister Giorgia Meloni, who previously cultivated a relationship with Donald Trump during his presidency, may find herself in a precarious position should he regain power in the upcoming election. A key issue looming over their potential partnership is Italy's low defense spending, which remains below NATO's target.
NATO's Defense Spending Goals
During Trump's presidency, he urged NATO members to allocate 2% of their GDP to defense. At that time, only four of the 29 members met this benchmark. NATO now anticipates that 23 of its 32 members will reach the target, but Italy's defense budget is forecasted to remain at only 1.49% of GDP in 2024, with gradual declines anticipated in subsequent years. While Meloni's administration aims for a 2% commitment by 2028, critics argue that progress is insufficient to satisfy U.S. expectations.
Budgetary Constraints and Public Sentiment
Italy's public debt, projected to reach 135.8% of GDP, severely limits defense budget increases. Moreover, a recent poll indicated that 63% of Italians oppose raising defense spending, reflecting a broader reluctance rooted in historical anti-war sentiment influenced by the Catholic Church.
Military Capability and Future Outlook
Despite budget limitations, Italy maintains a capable military, contributing significant personnel to NATO, EU, and UN missions. Italy also operates advanced military technology, including F-35 jets. Former defense officials emphasize the need for strategic reform to address underfunding, particularly within the army.
Conclusion
As Italy navigates its defense spending commitments, Meloni's government must balance domestic sentiment and international obligations. Strengthening ties with the U.S. under a potential Trump administration will require Italy to reassess its defense strategy and spending priorities.
