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: 14 Minutes
Italy recent developments highlight the country’s ongoing adaptation to a rapidly changing world, from Government shifts to strategic international partnerships and a mixed economic outlook. In Government news, the appointment of Salvatore Luongo as the new Commander General of the Carabinieri brings a seasoned leader to Italy’s military front. Meanwhile, the Constitutional Court’s ruling on the Autonomy Reform has stirred political debates. While affirming the broader framework of the reform, it blocked several provisions, emphasizing the central Government’s role. Italy’s parliament also saw a shift with Galeazzo Bignami elected as the new leader of Fratelli d’Italia’s parliamentary group. His leadership is significant within the conservative movement, especially in light of his controversial past and dynamic presence in the Emilia-Romagna region.
On the international front, Italy continues to strengthen its defense and cybersecurity strategies. By joining the Cyber Rapid Reaction Teams initiative, Italy is enhancing European cyber resilience, while its defense industry remains a vital player, contributing 14% to Europe’s market through companies like Leonardo and Fincantieri.
Diplomatically, Italy is bolstering relationships across Africa and Asia. The Mattei Plan for Africa guides partnerships with Congo, Libya, Morocco, and Kenya, focusing on renewable energy, sustainable development, and infrastructure. Italy’s growing ties with India also stand out, with industrial and technological cooperation taking center stage.
Economically, Italy faces a mixed outlook in 2024, with GDP growth stagnating and exports shrinking, largely due to slower demand from the Eurozone. However, the services sector, especially tourism, remains a bright spot. Energy remains a critical area, with Italy making strides to revive nuclear energy through the creation of a public-private company aimed at securing its future energy needs while contributing to Europe’s sustainability.
In the corporate world, companies like Eni, Enel, and TIM are making impactful moves. Eni’s new HPC6 supercomputer leads the way in sustainability and decarbonization efforts, while Enel’s ambitious €43 bln investment plan focuses on renewable energy and expansion in Latin America. TIM has shown strong revenue growth and reduced debt, positioning itself well for continued development.
Salvatore Luongo, the newly appointed Commander General of the Carabinieri, has officially succeeded Teo Luzi following the approval by the Italian Council of Ministers. A native of Naples, Luongo, 62, began his military career in 1977 at the Scuola Militare Nunziatella in Naples, before advancing through various prestigious military institutions. His academic credentials are notable, with degrees in Law, Political Science, and Internal and External Security Sciences, as well as advanced studies in Strategic-Military International Studies and Humanities.
Luongo’s career within the Carabinieri has been marked by significant leadership roles. He has commanded numerous battalions and companies, including those in Rome’s Casilina and Trastevere districts, and served as Provincial Commander first in Milan and then in Rome. His service to the nation extended to serving as military assistant and aide-de-camp to the President of the Republic, underscoring his commitment to institutional excellence. Between 2016 and 2024, Luongo was involved in key strategic and legislative roles, including leading the Legislative Office at the Ministry of Defense under Ministers from various political parties. His work included contributing to significant reforms, such as the revision of the Military Penal Code and the creation of legal frameworks for international crimes. His extensive service has earned him numerous honors, including the title of Grand Officer of the Order of Merit of the Italian Republic, a Bronze Medal for long command, and various civil recognitions.
On November 15, 2024, Italy’s Constitutional Court ruled parts of the proposed Autonomy Reform unconstitutional, addressing seven key provisions while upholding the broader framework. The ruling emphasized that the current version requires significant corrections, particularly concerning the Government’s exclusive role in determining essential levels of performance (Lep) and maintaining the balance of national interests.
The Court reaffirmed that regional autonomy, as envisaged by Italy’s Constitution, is permissible in principle but cannot undermine the state’s central authority in ensuring equitable public services. It highlighted three primary issues: the need for the central Government to retain oversight on critical public services, the marginalization of Parliament in favor of executive authority, and financial provisions that could destabilize the national budget. These provisions risk favoring less efficient regions, leading to inequalities in the provision of essential services.
The political response has been mixed. Prime Minister Giorgia Meloni has remained silent, likely weighing the implications for her southern voter base. The League, championing the reform, viewed the decision as a partial victory, with Minister Roberto Calderoli pledging to address the Court’s concerns. Forza Italia emphasized that progress should await the finalization of the Lep, essential for equitable governance.
Galeazzo Bignami has been unanimously elected as the new leader of the Fratelli d’Italia (FdI) parliamentary group, succeeding Tommaso Foti, who took over Raffaele Fitto’s duties following his appointment as Vice President of the European Commission. A prominent figure in Italy’s right-wing politics, Bignami’s rise marks the culmination of a long-standing political career grounded in Italy’s conservative movement. Bignami is often associated with the “Atreju generation,” characterized by a deep-rooted commitment to youth activism and grassroots political engagement. His career has seen him serve as a municipal councillor in Bologna, a regional councillor in Emilia-Romagna, and a member of parliament since 2018. In 2019, he transitioned from Forza Italia to Fratelli d’Italia.
Bignami’s rise in Emilia-Romagna, a region historically dominated by the left, is noteworthy. He has been a vocal critic of Elly Schlein, the secretary of the Democratic Party, sharing her Bologna roots but differing sharply on political matters. Despite his political achievements, Bignami’s career has not been without controversy. He has faced criticism over issues such as his disagreements with the Emilia-Romagna regional Government regarding flood relief funds, as well as a past photograph of him in a Nazi uniform, which he dismissed as a “prank” from a bachelor party.
On November 19, 2024, Italy officially joined the “Cyber Rapid Reaction Teams” initiative, a project under the Permanent Structured Cooperation (Pesco) framework launched by Lithuania in 2018. The announcement was made by Guido Crosetto, Italy’s Minister of Defense, who highlighted that this move strengthens collective efforts to better respond to cyber threats, which are key to the security of the European Union. Crosetto emphasized that Pesco should serve as a strategic asset for developing collaborative capabilities and bolstering the European defense industry.
The mission of the initiative is based on civil-military cooperation, aimed at supporting countries in the event of cyber incidents. This support includes information sharing, joint training, mutual operational assistance, and the creation of joint capacities to enhance overall cybersecurity resilience. The teams are designed to assist EU member states, EU institutions, missions, and operations under the Common Security and Defence Policy, as well as partner countries. Importantly, the initiative ensures complementarity and avoids duplication with NATO’s rapid response teams. Other participating countries include Austria, Belgium, Denmark, Estonia, Croatia, the Netherlands, Poland, Romania, and Slovenia.
The Mediobanca report on the defense sector reveals significant growth prospects and outlines key challenges facing the industry, particularly in Europe. The global defense industry is expected to experience a 9% revenue increase in 2024, followed by a 12% rise in 2025, driven by escalating global security threats, including the ongoing conflict in Ukraine, and increased defense spending, which reached an unprecedented $2.4 trillion in 2023.
The total turnover of the global defense industry amounted to €615 bln in 2023, marking a 9.8% increase compared to 2022. A significant portion of this turnover, around 60%, is controlled by the 40 largest multinational defense companies, with U.S.-based companies contributing to 68% of total revenues. The report further highlights the disparity between U.S. and European defense companies. While U.S. companies dominate in size, being three times larger than their European counterparts, European defense stocks have performed better in the market, with European companies seeing a 128.1% increase in stock value compared to 59.0% for U.S. firms.
Within this context, Italy’s defense sector stands out, with major players like Leonardo and Fincantieri contributing significantly to the European market. Leonardo ranks 9th globally and 3rd in Europe, while Fincantieri holds the 31st spot globally. Together, they account for 14% of the European defense market and 4% of the global market. The Italian defense industry, which is largely dual-use, has shown a turnover of €40.7 bln, with about half of that coming from defense-related activities. The sector’s workforce exceeded 181,000 employees in 2023, with over 54,000 dedicated to defense operations.
On November 25, 2024, the President of the Republic of Congo, Denis Sassou Nguesso, visited Italy, marking the third meeting in two years between the two nations. This ongoing diplomatic engagement underscores the growing and multifaceted partnership between Italy and the Republic of Congo, built around two core pillars: the Mattei Plan for Africa and Eni’s active role in the country’s energy sector, particularly in the liquefied natural gas (LNG) market.
In recent years, Italy’s presence in Congo has diversified beyond traditional sectors, with Italian companies making notable inroads in engineering, construction, and services. The turning point in Italy-Congo relations occurred in October 2023, when Italian Prime Minister Giorgia Meloni led a mission to Congo, revitalizing a partnership grounded in shared values, as outlined in the Mattei Plan. President Sassou Nguesso reciprocated by attending the Italy-Africa Conference in January 2024 with a high-level ministerial delegation. This exchange highlighted a strategic realignment focused on sustainable development, with Italy and Congo working together on several initiatives, such as the establishment of a high-level training course for Congolese judges in collaboration with the Scuola Sant’Anna and the Italian Ministry of Foreign Affairs.
One of the key sectors under the Mattei Plan is water management. Italy and Congo signed a five-year memorandum of understanding in March 2023, aiming to strengthen cooperation in sustainable development, enhance water resource management, and promote renewable energy.
The ongoing strengthening of relations between Italy and Libya, supported by the Mattei Plan, highlights Italy’s strategic focus on North Africa, particularly in the energy and agricultural sectors. In a recent meeting in Tripoli between Italy’s Minister for the Environment and Energy Security, Gilberto Pichetto Fratin, and Libyan Minister Khalifa Rajab Abdel Sadiq, discussions centered on boosting bilateral cooperation, especially in the oil and renewable energy sectors. The goal is to encourage Italian companies to invest in Libya, fostering sustainable development and enhancing local expertise in energy fields.
Simultaneously, in Rome, the President of the Chamber of Deputies, Lorenzo Fontana, met with his Libyan counterpart, Aghila Saleh Issa, reinforcing the deepening ties. Another significant initiative tied to the Mattei Plan is the creation of a new international training hub at the Ciheam Bari campus, which aims to promote innovation and education. This aligns with Italy’s broader vision for Africa, where Vice Minister of Foreign Affairs Edmondo Cirielli emphasized that the North African region, including Libya, holds the potential to become a global agricultural powerhouse.
The Mattei Plan supports two key projects that focus on renewable energy and biofuel development. These projects were highlighted at the 2024 “Africa Green Growth Forum,” organized by Ecomondo and the Ministry of Environment and Energy Security, in collaboration with the Mission Structure of the Presidency of the Council of Ministers.
One of the projects, in Morocco, is establishing a Center of Excellence for training professionals in renewable energy and energy efficiency. The center will serve as a hub for the entire African continent, providing education and skills development for experts, administrators, and technicians in the fields of renewable energy and electrical infrastructure.
In Kenya, the Piano Mattei is financing the development of a biofuel supply chain, supported by the Italian Climate Fund. The project focuses on producing vegetable oil from crops grown on degraded or abandoned lands. These crops, which do not compete with food production, will serve as raw materials for biorefineries. This initiative is similar to investments made by Eni and aims to utilize agricultural and forest residues. The project is already benefiting over 100,000 small local farmers across 16 counties, with plans to expand to 200,000 in the coming years.
Minister for Enterprises Adolfo Urso recently concluded his mission to India, a trip that underscored the growing strategic and industrial partnership. This collaboration, which has evolved beyond mere commercial exchanges to encompass economic, industrial, and security sectors, is essential for both countries. Urso’s visit was a direct result of the updated Italy-India Action Plan, which aims to elevate the relationship to new heights by 2029.
The Indian market is rapidly expanding, with bilateral trade approaching 15 bln euros last year, though there is still a trade deficit that needs to be addressed. Urso emphasized that the new strategic plan will facilitate Italy and India’s transition from commercial partners to technological and industrial allies. A key focus of the mission was increasing Indian investments in Italy, particularly in industries such as steel, mechanics, and green technology.
Urso held several bilateral meetings with Indian Ministers, including Jitendra Singh (Science, Technology, and Space), Piyush Goyal (Commerce and Industry), and G. Kishan Reddy (Mines and Coal), to discuss expanding opportunities for Italian businesses in India.
In 2024, Italy’s economy is displaying mixed signals. The third-quarter GDP growth stalled, reflecting weak industrial performance, though this was partially offset by robust performance in the services sector, particularly tourism.
A slight recovery is anticipated in the fourth quarter, driven by the services sector and the potential benefits of interest rate cuts, which could stimulate consumption and investment.
Despite improvements in services, Italy’s exports continue to contract, primarily due to sluggish demand in the Eurozone, notably in Germany. Inflation in the Eurozone remains elevated, with sector-specific variations: energy prices have decreased, while food and service prices have risen. Italy has managed to keep its inflation rate relatively contained.
Globally, industrial production has declined in both the United States and Europe, while China has seen growth in manufacturing, driven by foreign demand. The outlook for the future remains uncertain, with energy-intensive sectors struggling and a pressing need for recovery in consumption and investment.
Italy is moving forward with its plan to reintroduce nuclear energy through the establishment of a new public-private company, set to launch before the end of 2024. This company will be led by Enel, which will hold a majority stake of 51%, while Ansaldo Nucleare and Leonardo will hold 39% and 10%, respectively. Enel’s leadership is supported by its significant experience in the nuclear sector, including 9 Gigawatts of installed capacity in Spain and Slovakia, positioning it as the only Italian company managing nuclear plants globally.
Initially, the new company’s focus will be on research and development in the field of Small Modular Reactors (SMRs), a type of nuclear reactor that is gaining traction in several European countries. This initiative reflects the Government’s commitment to reviving nuclear energy in Italy. Interest is also growing among private sector operators, with companies such as Newcleo—an innovative clean nuclear startup founded in 2021—expressing interest in joining the new venture. Newcleo, which has raised over €530 mln from around 700 investors, plans to contribute to the project through its expertise in reactor design, as well as in producing a form of nuclear fuel called MOX, which could be vital for the future of nuclear energy in Italy.
In a move underscoring the evolving economic and geopolitical landscape, Italy’s Minister of Economy, Giancarlo Giorgetti, has signaled the need for a reform of the Golden Power framework. This critical instrument enables the Government to impose conditions or veto decisions involving strategic sectors, safeguarding national interests while maintaining a balance with free-market principles. However, Giorgetti emphasizes that the framework requires strengthening, particularly to shield small and medium enterprises (SMEs) with strategic value, which are increasingly vulnerable in a competitive global environment shaped by the interplay between civilian and military technologies—an approach prominently seen in China’s industrial strategy.
This urgency was illustrated in a recent decision by the Italian Government to exercise its veto powers over a proposed partnership between Manta Aircraft, an SME based in Varese, and the Chinese company Shenyang Aviation Industry Group. The collaboration aimed to develop prototypes of a passenger aircraft, but concerns over the strategic implications of such a partnership led to its blockage. The Government’s intervention highlights the growing significance of safeguarding strategic SMEs, which are often underestimated in traditional economic security discussions.
Statistics from 2024 reveal 661 notified operations, with 27 cases invoking special powers, including two vetoes. A 2023 Senate analysis reinforced these concerns, highlighting a fragmented regulatory landscape due to a decade of legislative layering.
The Italian Government has unveiled a National Action Plan aimed at safeguarding universities and research institutions from potential foreign interference, particularly from countries such as China. The initiative, presented by Undersecretary Alfredo Mantovano during a press conference at Palazzo Chigi, is set to be introduced at the G7 on Research Security in Bari this December.
The plan, which emphasizes a balanced approach, aims to establish guidelines to enhance security without disrupting academic and research activities. It includes “informative and training modules” and mitigation strategies tailored to different levels of risk. A self-assessment mechanism, likened to a traffic light system, will guide institutions in identifying and addressing potential threats: green for proceeding safely, yellow for cautious evaluation, and red for halting and investigating risks further. A national reference center will assist in these evaluations.
The initiative is part of a broader European obligation to align with international security standards in research. The plan also addresses geopolitical challenges by proposing the creation of “restricted access zones” within sensitive research areas, discouraging or prohibiting collaboration with nations deemed potentially hostile. While specific countries were not named during the announcement, officials acknowledged concerns primarily regarding China and, to a lesser extent, Iran.
Cassa Depositi e Prestiti (CDP), which holds a 60% stake in Open Fiber, has reportedly approved a financial injection into the fiber optic company, addressing its liquidity needs as it awaits final approval from a banking consortium for the refinancing of its broadband expansion efforts in Italy. This decision follows a lengthy board meeting, after which Open Fiber’s board convened to implement the CDP’s resolution.
The issue at hand revolves around the provision of approximately one bln euros, a sum to be jointly provided by CDP and Macquarie, the Australian fund holding the remaining 40% stake. However, Macquarie’s investment of 420 mln euros is contingent upon specific conditions, including a revision of the areas covered by the Infratel tender for “grey areas” and approval of adjustments to the financial plan concerning “white areas,” for which Government funds have been allocated through the Fiscal Decree and upcoming budget law.
The core challenge for CDP is whether to inject its share of the funds via a capital increase, potentially diluting Macquarie’s stake, or to provide a loan of around 250 mln euros to ensure liquidity while waiting for the resolution of the broader financing discussions.
Enel has unveiled its 2025-2027 Strategic Plan, highlighting a bold vision for growth through targeted investments and economic diplomacy. The company is positioning itself as a crucial bridge between Italy and key international markets, including Brazil, Argentina, and Chile. This strategy underscores Enel’s commitment to fostering robust institutional relationships to advance its global energy ambitions. The plan outlines gross investments of €43 bln, with 75% allocated to Europe and 25% to the Americas, emphasizing infrastructure and renewable energy.
Notably, €26 bln will enhance electricity distribution networks, pivotal for enabling the energy transition. A significant portion, €12 bln, is earmarked for expanding renewable energy capacity, particularly in Europe and the Americas. These investments will enable Enel to integrate 12 GW of green energy by 2027, supporting both regional growth and global sustainability goals.
Enel’s focus on regulated markets with predictable returns reflects its prudent approach to financial stability. By 2027, the company projects a cumulative EBITDA exceeding €70 bln, supported by strong performance in power purchase agreements (PPAs) across Latin and North America. This is coupled with a forecasted EBITDA increase to €24.5 bln and a net income growth to €7.5 bln, reinforcing the company’s financial robustness. Enel is poised for a new chapter of sustainable growth. Advocacy and economic diplomacy remain integral to its strategy, as demonstrated by Cattaneo’s engagement with leaders such as Brazil’s Lula, Argentina’s Milei, and Chile’s Boric.
Eni has officially launched its state-of-the-art High-Performance Computing system, HPC6, a supercomputer boasting an exceptional peak computing power of 606 petaflops. This performance positions it as the fifth most powerful supercomputer globally, the most advanced in Europe, and the top-ranked industrial-use system worldwide. HPC6 is the only non-U.S. system among the global top five.
HPC6 marks a pivotal step in Eni’s decarbonization strategy, placing technology at the core of its transformation into a leader in the energy transition. The supercomputer’s unmatched power enhances key activities, including optimizing industrial operations, refining CO2 storage techniques, and innovating in biofuels, battery technologies, and advanced materials. Additionally, HPC6 supports cutting-edge research in magnetic confinement fusion, a promising avenue for sustainable energy production.
Installed in Eni’s Green Data Center near Milan, HPC6 reflects a strong commitment to sustainability. The facility incorporates innovative liquid-cooling systems, minimizing its environmental impact.
Lufthansa CEO Carsten Spohr’s absence from the IATA conference in Rome, sponsored by Ita Airways, has raised eyebrows, especially as Ita is seen as a potential acquisition target for Lufthansa. The absence of Spohr, despite being attributed to prior commitments in Germany, and that of Joerg Eberhart, a key Lufthansa figure poised to lead Ita if the acquisition proceeds, cast a shadow over the event. This comes as negotiations between Lufthansa and the Italian Government over the sale of a 41% stake in Ita have hit a snag.
Antonino Turicchi, president of Ita, expressed hope that the European Commission, under Commissioner Margrethe Vestager, would approve the acquisition before the current commission concludes its term. However, no specific timeline for approval was provided. Tensions between Lufthansa and the Ministry of Economy and Finance (MEF) have emerged over finalizing the necessary paperwork for antitrust measures.
The 2024 budget had initially projected a loss of €20-25 mln, but Turicchi hinted at the possibility of Ita achieving operational profits. Meanwhile, the Italian air travel market is showing robust recovery. IATA data presented at the conference revealed that Italy’s passenger traffic had surpassed pre-pandemic levels, outperforming other European nations.
IATA’s director general, Willie Walsh, also raised concerns about Europe’s approach to CO2 emissions, warning that the introduction of sustainable aviation fuels (SAFs) could significantly increase costs for the industry. Walsh advocated for the implementation of a “Single European Sky” as a cost-effective measure that could immediately reduce CO2 emissions by 10%.
In the first nine months of 2024, Tim reported an improvement in key financial metrics, with total revenues rising by 3.4% year-over-year, reaching €10.7 bln. The company’s domestic revenues increased by 1.8%, amounting to €7.4 bln, while revenues from its Brazilian operations grew by 7.2%, totaling €3.3 bln.
Despite these positive figures, Tim’s net loss has been reduced by nearly 55%, standing at €509 mln, compared to €1.12 bln in the same period last year. This loss includes the benefit from the sale of NetCo, which is central to the company’s strategy for reducing its debt load.
EBITDA also showed a solid performance, growing by 8.7% to €3.3 bln, with strong contributions from both domestic and Brazilian markets. The company has managed to increase its operating margins, notably in its Enterprise segment, where revenues grew by 5.8%, driven by its cloud, security, and IoT services. Tim’s management has reaffirmed its financial outlook for the year, with a focus on accelerating debt reduction. While the sale of its stake in Inwit is not included in the financial targets, the company expects to generate approximately €250 mln from this transaction. The group is also continuing discussions regarding the future of its Sparkle division, which is under consideration for sale.
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