The Haizum Italian Insider Report is a monthly news service that monitors the most relevant issues in Italy. This document focuses on political, Economic, and Strategic matters, considering the role of Italy within the European Union, the MENA region, and Transatlantic Relations. The report will deliver clever insights by leveraging Haizum’s deep connections in the national institutional ecosystem.
Reading Time: 15 Minutes
Italy is witnessing significant changes in leadership within key government bodies. Minister of Economy and Finance Giancarlo Giorgetti has appointed Gabriele Casalena and Raphael D’Onofrio to lead the legislative office following the departure of Daria Perrotta. Meanwhile, Vincenzo De Lisi has resigned from the Justice Ministry amid ongoing turmoil.
In defense, Italy has strengthened military ties with Jordan by establishing a special forces hub, enhancing operational readiness and response capabilities in the Middle East. Additionally, General Luciano Portolano has been appointed as the new Chief of Defense Staff, succeeding Admiral Giuseppe Cavo Dragone. On the diplomatic front, Prime Minister Giorgia Meloni met with Ukrainian President Volodymyr Zelensky to reaffirm Italy’s commitment to Ukraine’s defense and reconstruction. Italy is also preparing to host the Ukraine Recovery Conference in 2025. Furthermore, Meloni’s recent participation in the United Nations General Assembly highlighted Italy’s focus on multilateral solutions to global challenges.
Italy’s economy is adapting amidst critical transitions. Emanuele Orsini, President of Confindustria, has raised concerns regarding the impact of European green policies on the Italian industry, calling for permanent tax cuts to sustain wage growth. In agriculture, Massimiliano Giansanti has been elected President of Copa, representing over 22 million farmers across Europe and advocating for sustainability and innovation. In energy, the government is taking steps to revive nuclear energy, planning the establishment of a company focused on advanced nuclear reactors, including small modular reactors (SMRs). This initiative follows Italy’s long-standing ban on nuclear energy, which was enacted in 1987.
Cassa Depositi e Prestiti (CDP) has appointed Fabio Barchiesi as its new Deputy General Manager, expanding his responsibilities in strategic operations. The Board of Directors also approved €3.5 billion in new initiatives aimed at supporting Italian enterprises and enhancing national infrastructure. In the energy sector, the agreement between BlackRock and Enel highlights a trend in the divestment of coal plants. Eni is evaluating a potential €500 million increase in its share buyback program amidst fluctuating oil prices, while TIM is considering a non-binding offer from the Ministry of Economy and Finance for the acquisition of Sparkle.
Minister Giancarlo Giorgetti has appointed Gabriele Casalena and Raphael D’Onofrio as the new leaders of the legislative office at the Ministry of Economy and Finance (MEF), following the departure of Daria Perrotta, who has moved to head the General Accounting Office of the State. Casalena, a military magistrate and former vice head of the legal and legislative affairs department at the Prime Minister’s office, will assume the role of head of the legislative coordination office. Raphael D’Onofrio, previously the deputy chief of staff, has been promoted to head the legislative office for economic affairs. These appointments mark a significant shift within the MEF, reflecting Minister Giorgetti’s strategy for enhancing the legislative framework and addressing the complexities of economic governance in Italy.
Vincenzo De Lisi, the General Director of the Department of Automated Information Systems (DgSia) at the Ministry of Justice, has resigned due to alleged disagreements with the Chief of Staff to Minister Nordio. This development adds to the ongoing turmoil within the Justice Ministry, following a series of leadership changes and controversies over the past few months. De Lisi’s departure marks a significant setback for the ministry, which is tasked with spearheading the digital transformation of judicial processes and administration. His resignation comes at a critical time, essential for achieving the goals in Italy’s National Recovery and Resilience Plan (NRRP).
Reports suggest that De Lisi’s resignation is tied to conflicts with Giusi Bartolozzi, the Chief of Staff, who has been described as having significant influence within the ministry. Previously, Bartolozzi has been implicated in other high-profile resignations, including that of former Chief of Staff Alberto Rizzo. Rizzo reportedly recognized Bartolozzi’s substantial power in the ministry, which ultimately contributed to his decision to leave.
Italy’s decision to establish a special forces hub in Jordan signifies a major step forward in the two countries’ long-standing military partnership. Over recent years, Jordan has become a crucial partner for Italy in the Middle East, especially due to its role in promoting stability in a region marked by conflict and unrest. The newly established special forces hub will enhance the operational readiness of Italian troops, enabling a swift response to crisis.
Jordan’s strategic location provides Italy with closer access to critical hotspots in the Levant and Arabian Peninsula, allowing for better intervention capabilities. A key element of this partnership is the utilization of the King Abdullah II Special Operations Training Center (KASOTC) near Amman, which is regarded as one of the most advanced special operations training facilities in the world.
A recent report titled “Peace through Security: the Strategic Role of Digital Technologies,” produced by Teha Group (The European House – Ambrosetti) in collaboration with Leonardo, emphasizes the need for a more efficient allocation of resources within the European Union to achieve greater strategic independence and operational efficiency.
According to the study, a closer collaboration among EU countries would generate annual savings of approximately €44.7 billion. These savings could be realized mainly through reducing troop deployment costs by €32 billion and streamlining research and development expenses by €12.7 billion. Europe not only spends less than the U.S. on defense but also spends inefficiently. Additionally, European defense industries lack coordination in procurement processes, with about 80% of their supply chain reliant on international vendors—primarily from the U.S.
Europe’s strategic dependence on external suppliers is also reflected in public opinion, with low support for common defense initiatives.
General Luciano Antonio Portolano has been appointed as the new Chief of Defense Staff of Italy. He will succeed Admiral Giuseppe Cavo Dragone, who is set to become the chairman of NATO’s Military Committee in January and will also advise the Defense Minister on NATO relations.
Portolano’s impressive portfolio also includes roles as Chief of Staff and Head of the European Union Command Element at the Allied Joint Force Command Naples from 2016 to 2019. He was appointed as Commander of the Operational Command of Joint Forces in September 2019, where he was responsible for planning and deploying Italian forces in various international operations. Since July 26, 2021, he has served as the commander of the Joint Operational Command and coordinated the complex operation to evacuate Italian citizens and Afghan personnel from Kabul amid the worsening situation in Afghanistan. Following these responsibilities, he was appointed Secretary General of Defense and Director of National Armaments on October 9, 2021.
During a 30-minute bilateral meeting held in Cernobbio, Italy, Prime Minister Giorgia Meloni and Ukrainian President Volodymyr Zelensky reaffirmed their shared commitment to Ukraine’s defense and reconstruction in the face of ongoing conflict. Meloni reiterated that Italy’s support for Kyiv is in line with its national interest and will remain unchanged, emphasizing that abandoning Ukraine is not an option for resolving the conflict.
Meloni underscored Italy’s commitment to supporting Ukraine’s legitimate defense and working towards a just and lasting peace. The conversation also touched on plans for the Ukraine Recovery Conference, set to be hosted in Italy in 2025, highlighting Italy’s role in Ukraine’s reconstruction.
President Zelensky met with representatives from over 30 Italian companies spanning various sectors. Discussions focused on post-war reconstruction and cooperation between Ukrainian and Italian businesses.
Carlo Baldocci has been appointed as Italy’s new ambassador to Riyadh, marking a new chapter in diplomatic relations between Italy and Saudi Arabia. In his first statement following the appointment, Baldocci expressed his commitment to strengthening the relationship between the two countries. He emphasized the importance of working together on shared objectives.
Italian Prime Minister Giorgia Meloni attended the United Nations General Assembly on September 22 and 23, 2024, where the “Summit of the Future” took place. This significant event aimed to address a variety of topics underpinned by the pursuit of multilateral solutions for a better tomorrow. One of the key outcomes of the summit was the adoption of the “Pact for the Future,” which emerged from interGovernmental negotiations and featured a Global Digital Agreement and a Declaration for Future Generations.
In her address, Meloni shared Italy’s perspective on crucial international issues, including the war in Ukraine, the conflict in the Middle East, migration governance, the fight against mass illegal immigration, international crime, and the advancement of artificial intelligence. She also highlighted initiatives related to Italy’s G7 presidency and the new approach of equal partnerships that Palazzo Chigi established towards Africa and the Global South.
In a recent address to the Confindustria assembly, Emanuele Orsini, the president of Italy’s industrial confederation, expressed urgent concerns over European policies and their detrimental effects on the Italian industry. He emphasized the need for unity among political factions to safeguard key issues impacting the livelihoods of citizens, families, and the workforce. Notably, Italy saw a 3.1% increase in wage growth in the first half of 2024, reflecting a recovery in purchasing power amid a low inflation rate of 1.1%.
Orsini attributed this growth to salary increases negotiated in major contracts signed by Confindustria and underscored the necessity of making tax cuts permanent to align with European wage averages.
Orsini’s address highlighted the challenge of achieving growth during significant transitions in energy, environment, and digital sectors, which he deemed costly revolutions that could transform lives and businesses. However, he cautioned against conflating self-referential environmental policies with those needed for industrial growth. He urged a pragmatic approach. He criticized the current decarbonization efforts, which, according to him, threaten to lead to deindustrialization, citing the example of the automotive sector, which is struggling due to the European Union’s green policies.
Massimiliano Giansanti, the current president of Confagricoltura, has been elected as the new president of Copa, the Committee of Professional Agricultural Organizations that represents over 22 million farmers across Europe. Giansanti, who was previously a vice president of Copa, received support from the Italian Government led by Giorgia Meloni and other industry associations, despite facing tensions with Coldiretti.
In addition to his leadership roles, Giansanti is engaged in promoting innovation and sustainability within agriculture. He holds positions on the Territorial Advisory Board of UniCredit for the Central Region of Italy, the National Council for Economy and Labor (CNEL), and has previously been involved in various boards and committees related to agricultural policies and market development.
The Government is taking significant steps to reintroduce nuclear energy in Italy, with plans for establishing a new company focused on the production of advanced third-generation nuclear reactors. This initiative involves preliminary negotiations with Ansaldo, Enel, and Newcleo, and a dedicated legislative proposal is expected to be unveiled by the end of the year.
A notable focus of these discussions is on small modular reactors (SMRs), which are smaller in size and capacity—typically not exceeding 300 megawatts—compared to traditional nuclear plants. These modular reactors offer advantages in terms of cost-effectiveness and construction speed, although they are still in the development stage. SMRs can belong to either the third or fourth generation of nuclear technology.
As the Government moves forward with the formation of this new nuclear company, Minister of the Environment Gilberto Pichetto Fratin has confirmed efforts to legally reintroduce nuclear energy, which has been dormant in Italy since the 1987 referendum that effectively ended the country’s nuclear program. The National Integrated Plan for Energy and Climate, published in July, outlines the Government’s intention to assess the availability, development potential, costs, and performance of new modular fission reactors and fusion reactors, aiming for insights up to 2050. The plan estimates that fission and potentially fusion energy could fulfill 11% of Italy’s electricity needs by 2050, with room for growth to 22%.
On September 29, 2024, the Italian Government approved a legislative proposal aimed at improving safety in underwater activities by establishing a new agency called the Underwater Safety Agency (Asas). This initiative, proposed by Minister Nello Musumeci, comes in response to the need for regulations that extend beyond the current depth limit of 40 meters, ensuring comprehensive oversight of underwater operations.
The agency, which will consist of 40 personnel, including a director general appointed based on proven expertise, will operate under the Council of Ministers. The Asas will be responsible for various critical functions, such as managing risks to ensure the safety of individuals and infrastructure involved in underwater activities. Additionally, the agency will oversee the safe passage of submarines in territorial waters and establish minimum safety standards for emergency extraction systems and underwater localization technologies for non-military vessels.
Fabio Barchiesi has been appointed as the new Deputy General Manager of Cassa Depositi e Prestiti (CDP), following a decision by the company’s Board of Directors. Currently serving as Director of Development and Governance at CDP Equity and Head of Strategic Plan Monitoring and Implementation at CDP, Barchiesi will assume a broad range of cross-functional responsibilities, extending his role from equity management to overseeing various strategic operations within the organization.
In addition to his responsibilities at CDP, Barchiesi serves on the boards of several major companies, including Autostrade per l’Italia (ASPI), Ansaldo Energia, and GreenIT. He also holds the position of Chairman of the Advisory Board of the Fondo Italiano Tecnologia e Crescita, further highlighting his significant role in steering strategic investments and growth initiatives.
On September 11, 2024, the Board of Directors of Cassa Depositi e Prestiti (CDP), under the leadership of Chairman Giovanni Gorno Tempini and CEO Dario Scannapieco, approved new initiatives valued at over €3.5 billion. These initiatives are designed to support large and medium-sized Italian enterprises, enhance critical national infrastructure, and foster new regional investments. In conjunction with these funding initiatives, CDP has commenced preparations for its new Strategic Plan for 2025-2027, working alongside the Boston Consulting Group.
Additionally, the Board has approved funding for the realization and modernization of strategic infrastructures, particularly in the energy sector. This includes enhancing facility efficiency, increasing the use of renewable energy sources, and strengthening water networks. Financing has also been allocated for state-of-the-art healthcare facilities developed through Public-Private Partnerships and initiatives supporting local administrations.
The recent agreement between BlackRock and Enel highlights a troubling trend that extends beyond Italy, gaining a broader European context. This American mega-fund, already prominent in global financial markets, has embarked on a strategy to capitalize on the divestment of power plants across Europe, a process hastened by ecological transition policies.
Central to the deal is the low-cost acquisition of decommissioning coal plants, such as those in Civitavecchia and Brindisi, by BlackRock. These facilities, once symbols of a fossil fuel-based energy past, may now face a contradictory fate, repurposed to power data centers for major corporations like Google and Microsoft. BlackRock’s ambitions extend beyond Italy.
As tensions escalate in the Middle East and oil prices fluctuate, Eni is under pressure to assess a potential €500 million increase in its share buyback program. The oil sector is currently experiencing significant volatility, particularly with Brent crude prices teetering around $82 per barrel, following a drop below $80. While this price remains relatively close to the average of $84 for the first half of 2024, it has raised concerns among oil companies. Eni closely monitors these price fluctuations due to its direct correlation with the company’s operational cash flow.
The management has projected a Brent price of €86 per barrel for the remainder of the year. Eni’s sensitivity analysis indicates that for each dollar change in Brent prices, there could be a €130 million impact on its operational cash flow. Despite the uncertain market conditions, Eni’s existing buyback program, valued at €1.6 billion, is progressing well, with over €750 million of shares repurchased as of September 27, 2024. A key moment for Eni will be the announcement of third-quarter financial results on October 25, when management will evaluate the potential increase of up to 35% in the operational cash flow distribution.
Tim has convened its board of directors to evaluate the recent non-binding offer made by the Ministry of Economy and Finance (MEF) in collaboration with Retelit for the acquisition of Sparkle, the telecommunications company specializing in cable networks. The offer is valid until October 15, and if accepted, it would lead to exclusive negotiations, ultimately paving the way for a binding offer. Equita analysts highlighted remarks made by MEF’s General Director, Marcello Sala, during a conference where he reiterated the Government’s objective of establishing a single fiber optic company in Italy. They noted that the potential merger between Netco and Open Fiber represents a significant catalyst that has yet to be factored into the stock’s value, especially considering the earnout adjustments stipulated in the agreement with KKR.
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