Italy's F-35 jet orders should be frozen, cut: Renzi party document
By Steve Scherer and Antonella Cinelli
ROME (Reuters) - Italy should put its order for 90 Lockheed Martin (LMT.N: Quote) F-35 fighter jets on hold and probably cut it "significantly", lawmakers in Prime Minister Matteo Renzi's Democratic Party (PD) say, according to a party document.
The government has committed to spending an estimated 12 billion euros for the 90 radar-evading planes, but Renzi, who announced 10 billion euros ($13.91 billion) in income tax cuts last week, said on Sunday the order would be "revised" as he seeks to reduce public spending.
A PD party paper seen by Reuters, which was distributed to PD lawmakers on Wednesday by PD defense committee member Gian Piero Scanu, says that the contracts should be frozen and that "significant" cuts are probably needed.
The paper argues that the F-35 guaranteed Italy "no significant industrial gains" and that its cost "cannot co-exist with the needs of our public finances."
The 10-page document suggests increasing common European Union defense initiatives and cutting spending on armaments and technology by 1 billion euros a year over the next decade.
Italy's supreme defense council, including Renzi, ministers, the top military commander and President Giorgio Napolitano, agreed at a meeting on Wednesday that any cuts would not be made before a comprehensive review of the country's military needs, which is due to be completed by the end of this year. A statement issued after the meeting did not mention the fighter jet directly however.
The military review will be conducted by a committee of military and civilian specialists.
Italy cut its order for the planes by 30 percent two years ago to stem state expenditure during the euro zone debt crisis. Continued...