Domestic Policy
Defence: The government is moving forward with renewing the decree that allows the delivery of aid to Ukraine, without requiring parliamentary votes for each individual package, and without accepting the League’s request to exclude “offensive” weapons. Foreign Minister Antonio Tajani and Defence Minister Guido Crosetto are defending the current framework, while the League, through Claudio Borghi, is calling for reducing the validity period from one year to three months and prioritising logistical and civilian aid. The proposals are dividing the majority: Fratelli d’Italia opposes formal limitations, while Forza Italia shows cautious openness. The decree is expected to come into effect from 1 January.
Justice: The date for the referendum on the judicial reform remains uncertain and is causing division within the government, which today is focused solely on discussing extending voting days to Sunday and Monday. Justice Minister Carlo Nordio has indicated March as a possible reference date, especially in light of favourable polls on the reform, but risks of legal challenges remain if the minimum three-month interval from the decree of convocation is not respected. The safest date would be 29 March. Complicating matters further, a new question submitted to the Court of Cassation by 15 citizens could delay the consultation timeline.
Foreign Policy
Ukraine: The US peace plan, later adjusted by Ukraine and its European partners, has met resistance from Russia, which views the changes as insufficient for a lasting peace. The Miami talks have been described as “constructive” by the parties involved, but Moscow rejects the idea of a trilateral negotiation with Ukraine and the US, and maintains its territorial claims over Donbass. Kyiv is demanding strong security guarantees and rejecting territorial concessions. The negotiations remain without immediate prospects of agreement, while possible diplomatic openings emerge between Paris and Moscow: Putin has expressed willingness to meet French President Macron, although no official dates have yet been set for the meeting.
Israel: The Israeli government has approved 19 new settlements in the occupied West Bank, including four in the northern area, evacuated in 2005 during Ariel Sharon’s disengagement plan. The move, strongly pushed by Finance Minister Bezalel Smotrich, is framed as a “correction of a historical injustice” and aims to prevent the emergence of a Palestinian state. The decision, made possible by a 2023 amendment, risks destabilising the Gaza ceasefire and will weigh on the upcoming meeting between Netanyahu and Trump. Meanwhile, tensions are rising in the West Bank.
Economy and Finance
Budget Law: The 2026 Budget Law, worth €22 billion, has reached the Senate after approval by the Commission and is expected to be definitively passed by the end of the year. Described as a “transition” measure, it completes the tax reform path with a reduction in the second Irpef tax rate and introduces pension reforms: mandatory contribution of the Tfr to the Inps Fund for companies with at least 40 employees and automatic enrolment of new hires in complementary pension schemes. It also includes tighter controls on early withdrawals and strengthens defence, public order, and gold reserves.
Telecom: Following confirmation of a refund of over €1 billion for the subscription fee, Telecom CEO Pietro Labriola has called an extraordinary board meeting to assess the conversion of savings shares, a project previously discussed to simplify the shareholding structure. The new context, with Vivendi’s exit and Poste as the reference shareholder, makes the operation more favourable due to greater financial flexibility. The board will also discuss the appointment of a new director, following the resignation of Umberto Paolucci, and possible share swaps, which are crucial for securing the approval of major shareholders.