Italy expands its Army modernisation roadmap 19/09/2024 | Marco Giulio Barone

Within the recently published DPP 2024-2026 (multi-year defence planning and procurement document), Italy has expanded its budget dedicated to land programmes in the largest modernization effort ever undertaken by the Italian Army.

The programme for the acquisition of the new battle tank (MBT) for the Italian Army received additional funding of €1.4 billion, bringing the appropriated budget to €5.5 billion. The total expected cost of the programme is esteemed in €8.2 billion. By the end of the month, as announced, the new joint venture between Leonardo and Rheinmetall is expected to be established and will likely act as prime contractor for the programme. According to what the two companies announced in July, the starting base vehicle will be Rheinmetall's PANTHER - yet this is not specified in the DPP.

The programme for the acquisition of the new Armoured Infantry Combat System (AICS) programme - received additional funding of €1.2 billion, brings the total figure of available funds to €6.4 billion, against an estimated total cost of €15 billion. Major programmes have been announced in the artillery sector as well.

The DPP unveils that the Army will kick-off an acquisition programme, worth €1.8 billion, for KNDS’ RCH-155 self-propelled wheeled howitzer. The schedule provides for an initial allocation of €202 million spread over four years, against the entire programme’s value of €1.8 billion in the long run. No details are given on the number of vehicles to be acquired. Nonetheless, given the Italian Army’s current and foreseeable OOB, it may want to equip 3-4 regiments with the RCH-155. According to KNDS’ official literature, the system can be integrated either on BOXER chassis or on Iveco 8x8 HMMT. The programme also includes the procurement of support vehicles (supply vehicles, rescue and recovery and towing complexes) and different types of ammunition, aimed at ensuring the ability to diversify the effectiveness on target - 'scalable and/or programmable' firepower – and to ensure some stockpiling.

In 2025, a Mid-Life Update (MLU) programme for PZH-2000s will also be launched. The MLU includes the removal of the howitzer's electronic and mechanical obsolescence (e.g. replacement of ballistic calculator, installation of tower fire extinguishing system, air conditioning), the improvement of the CAN-BUS electronic backbone platform to allow for the installation of external cameras and the ‘remotization’ of the turret. The programme will take €266 million in the 2025-2029 period, €60 million of which already allocated.

In addition, four artillery batteries will be equipped with 'heavy' loitering munitions, to be selected, with a range of up to 90 km. The programme has a total value of €342 million, of which €15 allocated in 2025, and €270 million spread in the next 9 year. It is unknown when the programme would be completed.

The DPP also anticipates the launch of the Full All-Terrain Vehicle programme aimed at renewing the All-Terrain Vehicles that equip mountain brigades. The programme envisages 450 vehicles in different versions, in order to enable at least one Alpine (mountain) Brigade to operate in full tactical and logistical autonomy. The new generation vehicles will be adapted to the new operational scenarios, guaranteeing a significant increase in terms of tactical mobility on any terrain, integration and interoperability in a multi-domain environment, ballistic protection and lethal engagement. Only €4 million are allocated for an initial 2-year study, with €1.229 billion after 2029 for the procurement phase.

Despite these ambitious plans, the Italian Army has traditionally faced financial constraints that have hindered modernization efforts. The record allocation comes after decades of underfinancing that required urgent actions to put the Army in condition of improving its combat readiness. Ongoing budgetary pressures mean that while some programs are advancing quickly, others face delays or scaling back. Indeed, the main programmes continue to postpone the bulk of expenditure to later years, and many of the billions announced are for very long periods, going up to 2038 in some cases.

Yet, the current wealth of programme remains good news, as it has a deep impact on the future industrial landscape in the land sector in Europe. For instance, programmes planned through the DPP contribute to the reinforcement of the Italian-German industrial cooperation, which is broadening and deepening, thus creating new perspectives on the future of multinational ground combat systems in Europe.

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