Domestic Policy
Arms Decree: The Council of Ministers swiftly approved the extension until 2026 of the decree providing aid to Ukraine, reaffirming the framework already adopted in previous years. Debate within the governing coalition focused primarily on the wording of the measure, with the inclusion of a more explicit reference to logistical and civilian assistance. Despite some differences in emphasis among parties, the text was agreed upon and approved without substantial changes.
Justice: The Council of Ministers postponed the decision on the date of the referendum regarding the separation of judicial careers, opting to await further legal assessments. Underlying this decision is the signature collection initiated by a civic committee and the Quirinal Palace’s reminder to respect procedural norms. The government is now considering a possible window between March and April, while opposition parties mobilise against accelerating the timeline.
Foreign Policy
Ukraine Conflict: The alleged Ukrainian drone strike against a residence of Putin has triggered a sharp diplomatic escalation between Moscow, Kyiv, and Washington. Russia accuses Ukraine of “state terrorism” and announces a revision of its negotiating position, while Trump appears to lend credence to the Russian version. Zelensky rejects the accusations and denounces them as a pretext to sabotage peace negotiations. Meanwhile, Putin reaffirms Russia’s military advance and its determination to achieve its objectives on the ground.
Middle East Conflict: The meeting in Mar-a-Lago between Trump and Netanyahu confirmed an alliance still central but strained by tensions over differences regarding Gaza, Iran, and Lebanon. The US president reiterated support for Israel while seeking to contain regional escalation and revive a fragile stabilisation process. Central to the discussion are the future of the Gaza Strip, the disarmament of Hamas, and the role of regional actors, from Turkey to Iran.
Economy and Finance
Budget Law: The Budget Law is nearing completion following the approval of confidence in the Chamber of Deputies, amid opposition protests and the government’s race against time to avoid provisional budgetary measures. The 22-billion-euro package focuses on support for families and businesses, reducing the tax wedge, and incentivising employment. The governing coalition claims financial solidity and market credibility, while the League reiterates demands on pensions and flat tax. With the final vote imminent, the executive concludes the most delicate parliamentary phase of the year.
Motorways: From 1 January 2026, motorway tolls will increase on average by 1.5%, a direct consequence of decisions by the Constitutional Court that have reactivated tariff adjustments suspended in previous years. The Ministry of Transport clarifies that these increases do not stem from recent political choices but from the obligation to apply rules set by the Transport Authority. Increases will affect most of the national network, with some exceptions and differentiated percentages. The government claims it attempted to freeze tariffs but had to comply with rulings from the Constitutional Court.