Domestic Policy
Security: Following the events in Turin, the government approved in the Council of Ministers the new security package, agreed with the Quirinal Palace on preventive detention and legal immunity for law enforcement. Judges may prohibit demonstrations by those convicted of terrorism, devastation, or looting; police may impose preventive detentions of up to 12 hours, subject to judicial validation. Measures against urban and juvenile violence, including sanctions against parents, are included. Provisions on self-defence have been strengthened.
Winter Olympics: The Milan-Cortina 2026 Winter Olympics have officially begun, hosted across three regions. Approximately 50 heads of state and government are expected in Milan. President Sergio Mattarella met with Italian athletes and will formally open the Games during a ceremony spanning Milan, Cortina, Val di Fiemme, and Livigno. The women’s ice hockey match between Finland and Canada has been postponed due to norovirus cases. Meanwhile, the U.S. delegation, led by Vice President JD Vance and Secretary of State Marco Rubio, has arrived and participated in official and sporting events marking the start of the Olympics.
Foreign Policy
Ukraine: The second round of peace talks on Ukraine took place in Abu Dhabi, resulting in a limited agreement to exchange 314 prisoners. Moscow reiterated that its military operation will continue until Kyiv makes decisions deemed adequate, according to Kremlin spokesman Dmitry Peskov. Ukrainian President Volodymyr Zelenskyy confirmed the continuation of trilateral negotiations, urging faster results in the peace process. The Russian delegation noted progress despite external pressures aimed at obstructing the talks.
Iran: U.S. envoys Steve Witkoff and Jared Kushner arrived in Qatar to meet with the Iranian delegation led by Foreign Minister Abbas Araghchi. In Iran, protests that erupted on December 28 against currency devaluation were harshly suppressed, resulting in thousands of deaths. Trump has threatened military intervention if no nuclear agreement with Iran is reached. Middle Eastern mediators have proposed a five-point plan: limiting uranium enrichment, transferring stockpiles, halting weapons transfers to allied militias, restricting ballistic missiles, and establishing a non-aggression pact between Tehran and Washington.
Economy and Finance
Strait of Messina Bridge: The Infrastructure Decree approved by the Council of Ministers aims to restart the Strait of Messina Bridge project after its suspension by the Court of Auditors, though the risk of further delays remains high. The Ministry of Infrastructure and Transport must complete numerous requirements: updating the economic-financial plan, obtaining opinions on tolls, conducting environmental assessments, justifying public interest, and consulting with the European Commission. Key concerns include costs, revenues, procurement regulations, and the project’s increased estimated value of €13.5 billion. Construction is tentatively scheduled to begin in June 2026. The government’s commitment to completing the project remains confirmed.
ECB: The European Central Bank has decided for the fifth consecutive time to keep interest rates unchanged, with the deposit rate remaining at 2%, maintaining a cautious stance. President Christine Lagarde described inflation as “in a good place” and downplayed the impact of the euro’s strengthening, while continuing close monitoring. The Eurozone economy remains resilient, and decisions will continue to be data-driven. 2025 ended better than expected, with potential future benefits from Germany’s fiscal stimulus and increased defence spending. According to Nomura, the rate-cutting cycle is over, and rates will remain unchanged until 2027.