Domestic Policy
Government: The worsening crisis in the Middle East has prompted Italian President Sergio Mattarella to summon Prime Minister Giorgia Meloni and Defence Minister Guido Crosetto to the Quirinale for an urgent meeting. The government is assessing the US request to provide defence systems to Gulf countries, seeking parliamentary approval to legitimise the action. Caution remains in relations with Washington, and Italy’s veto on a nuclear-armed Iran is reaffirmed. Meanwhile, the Foreign Ministry is engaged in assisting Italian citizens in affected areas and monitoring economic repercussions, including concerns over energy and inflation.
Anti-Semitism Decree: The Senate approved the anti-Semitism bill in its first reading with 105 votes in favour, 24 against and 21 abstentions, highlighting a sharp divide among political forces. The measure, promoted by League MP Massimiliano Romeo, adopts the IHRA definition of anti-Semitism, a point contested by the centre-left due to potential implications for criticism of the State of Israel. The Democratic Party majority abstained, while a minority within the party voted in favour alongside the centre-right, Azione and Italia Viva; the Five Star Movement and the Green-Left Alliance voted against. Opposition amendments to replace the IHRA definition were rejected, and the text now proceeds to the Chamber of Deputies.
Foreign Policy
Middle East Crisis: The conflict in the Middle East is expanding, involving new actors and fronts. A ballistic missile launched by Iran and intercepted by NATO before entering Turkish airspace heightened tensions, though it did not trigger Article 5 of the Alliance; Ankara urged Tehran to avoid further escalation. In northern Iraq, Kurdish groups are reportedly preparing operations against the regime, while the United States claimed responsibility for sinking an Iranian ship off the coast of Sri Lanka. In Iraq, a nationwide blackout and the downing of drones near Baghdad airport have worsened instability. Meanwhile, Israeli airstrikes on Tehran and missile launches on Tel Aviv continue, while clashes between Israel and Hezbollah intensify in southern Lebanon, accompanied by new evacuation orders.
EU-US Relations: Spanish Prime Minister Pedro Sánchez reiterated Madrid’s refusal to become involved in a war against Iran, rejecting pressure from US President Donald Trump, who criticised Spain and threatened commercial repercussions following the veto on the use of the Rota and Morón bases. Sánchez defended the decision not to support the conflict and called on the United States, Israel and Iran to halt the escalation. European leaders Emmanuel Macron, Ursula von der Leyen and António Costa expressed support for Spain’s position.
Economy and Finance
Economic Outlook: In January, unemployment fell to 5.1%, a historic low since the start of Istat’s monthly series in 2004, with 80,000 more people employed and an employment rate of 62.6%. However, the number of inactive individuals also rose, particularly among young people and women. On an annual basis, the increase in employment is modest and concentrated among those over 50, while younger age groups saw a decline and the gender gap remains wide. Meanwhile, the OECD has urged Italy to exercise caution, reminding the country that it has the second highest debt-to-GDP ratio in the euro area and must maintain a credible fiscal trajectory.
EU: The European Commission has presented the Industrial Accelerator Act (IAA), aiming to strengthen the strategic autonomy of EU industry through “made in EU” clauses in public procurement and stricter conditions for foreign investment in key sectors. The plan, supported by France but opposed by Germany due to fears of protectionist tendencies, must now undergo negotiations with governments and the European Parliament. On the trade front, US Treasury Secretary Scott Bessent announced a possible increase in global tariffs to 15%, while the ratification of the EU-US agreement on tariffs remains pending.