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Forces: January 30, 2002

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The Italian government is increasing its defense budget by 7 percent to $16.7 billion, but the increase will be absorbed by the higher personnel costs of converting to an all-volunteer military and by the cost of peacekeeping operations. Major procurement spending includes the Horizon frigate, a new aircraft carrier (to be ready in 2008), new submarines, NH90 and EH101 helicopters, and Eurofighters.--Stephen V Cole

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