The US Government has cleared a potential $364m Foreign Military Sale (FMS) of air-to-air precision guidance kits and related equipment to Italy.
The Government of Italy seeks to procure up to 5,031 Guidance Sections Single Variant Air-to-Air Advanced Precision Kill Weapon System-II (APKWS-II), along with a range of launchers, rocket motors, warheads, and associated support.
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In addition, the package covers non-major defence equipment (MDE) items including LAU-131 A/A launchers, Mk-152 high explosive warheads, MK66 rocket motors, proximity fuzes, both practice and inert warheads, technical documentation, training, and logistical support.
The APKWS II adapts the unguided Hydra 2.75-inch rocket by adding a laser guidance kit, providing improved targeting accuracy. It is designed to offer a lower-cost precision weapon option with reduced risk of unintended damage.
BAE Systems has been identified as the principal contractor for the proposed sale.
The US State Department stated that the proposed transaction aligns with Washington’s security interests by bolstering the capabilities of “a Nato ally that is a force for political stability and economic progress in Europe.”
The proposed sale is also expected to strengthen Italy’s ability to meet current and future threats, enhance homeland defence, and support Nato’s integrated air missile defence framework.
The statement added that there would be “no adverse impact on US defence readiness” and that the transfer would not shift the military balance in the region.
No additional US government or contractor personnel will be required in Italy to support the sale, and, at this stage, no offset agreements have been established.
The announcement comes as Italy signals further increases in defence spending.
In June this year, Prime Minister Giorgia Meloni told parliament that Italy’s defence and security budget would rise to around 2.8% of its gross domestic product by 2026, up from the previous year’s level by approximately 0.71 percentage points.
A recent report by data analytics company GlobalData forecasts that Italy’s defence market is set to expand in the wake of revised Nato commitments and regional developments.
The report, ‘Italy Defence Market – Size and trends, budget allocation, regulations, key acquisitions, competitive landscape and forecast, 2026-2031,’ stated that the nation’s defence sector, which stood at $27.4bn in 2022, is projected to reach $42.6bn by 2031, reflecting an average annual growth rate of 8.4% to 2026.
