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: 18 Minutes
December 2024 was a pivotal month for Italy, with significant advancements in diplomacy, defense, and economic strategy. Domestically, Italy’s governance reform continued with the election of Pasquale Gandolfi as President of the Union of Italian Provinces, focusing on decentralization and fiscal efficiency. Italy also appointed Vincenzo Carbone as Director of the Italian Revenue Agency, signaling a push for tax reform. Judicial reforms included new appointments to the National Anti-Mafia Directorate to combat organized crime.
Italy strengthened its global position through high-level diplomatic visits. King Felipe VI of Spain’s visit underscored the shared commitment to European unity, while President Mattarella reiterated Italy’s unwavering support for Ukraine in a meeting with Zelenskyy. The appointment of Italy’s first female ambassador to Tehran, Paola Amadei, highlighted Italy’s expanding diplomatic reach, particularly in the Middle East.
Italy’s defense sector saw a major leap with the creation of a joint venture with the UK and Japan for a sixth-generation fighter jet. This collaboration, involving Leonardo and BAE Systems, strengthens Italy’s role in future defense technologies. Additionally, Italy’s push for space sovereignty continued with plans to establish a sovereign fund to support dual-use space applications, reinforcing its position in the European Space Agency.
Italy’s economic diplomacy extended to Africa with the launch of the Growth and Resilience Platform for Africa (GRAf), aimed at fostering food security and sustainable infrastructure. The platform is aligned with Italy’s broader geopolitical ambitions, including the Mattei Plan. Additionally, CDP’s industrial plan, which aims to mobilize €81 bln in investments, focuses on green economy and economic security. Eni made significant strides in West Africa, with the Baleine project in Côte d’Ivoire reaching 60,000 barrels per day and a focus on zero-emission technologies. Meanwhile, Fincantieri and Sparkle’s partnership to protect submarine cables enhances Italy’s cybersecurity infrastructure. Opportunities arose over the potential foreign acquisition of Sparkle by Asterion.
Italy’s strategic positioning is increasingly focused on sustainability, defense, and strengthening international partnerships. However, balancing these efforts with maintaining strategic autonomy will be crucial in the coming years.
On a state visit to Italy, King Felipe VI of Spain met with President Sergio Mattarella at the Quirinale. This marks the first stop of the two-day visit, which highlights the deep friendship and growing collaboration between Italy and Spain. President Mattarella emphasized the historical significance of the visit, which comes at a crucial time for both the European Union and the international community. Following their meeting at the Quirinale, the Spanish royals visited the Altare della Patria, where King Felipe VI laid a wreath at the Tomb of the Unknown Soldier, in the presence of Defense Minister Guido Crosetto. They later attended a lunch hosted by Prime Minister Giorgia Meloni at the Casino del Bel Respiro in Villa Doria Pamphili, followed by a Senate meeting with President Ignazio La Russa.
King Felipe VI spoke of the strong ties between Italy and Spain, highlighting the two nations’ commitment to multilateralism and international law. He praised President Mattarella as a key reference point not only for Italy but for many heads of state globally. The King also expressed gratitude for the deep-rooted relationship shared between Italy and Spain, noting that the countries represent around a fifth of the European Union’s GDP, underscoring the importance of intensified cooperation in facing global challenges.
The King reiterated Spain’s support for a just and lasting peace in Ukraine and condemned the violence in the Middle East. His speech at the Senate also touched on the values that guide European integration, quoting Alcide de Gasperi‘s vision of a patient, democratic, and constructive Europe. King Felipe VI’s visit highlights the strong bilateral relationship between Italy and Spain, which will celebrate 160 years of diplomatic ties in 2026.
President Sergio Mattarella reaffirmed his country’s unwavering commitment to Ukraine in a meeting with Ukrainian President Volodymyr Zelenskyy at the Quirinale.
Mattarella highlighted Italy’s support for Ukraine as part of its commitment to international norms and the security of all of Europe. “We do this for the friendship that binds Italy and Ukraine, for the respect of international coexistence, and against the imposition of force upon another country,” he stated. Zelenskyy, who had also met with Prime Minister Giorgia Meloni the previous day, was assured of Italy’s continued solidarity in the face of ongoing conflict.
Pasquale Gandolfi, the President of the Province of Bergamo and a member of the Democratic Party, has been elected as the new President of the Union of Italian Provinces (UPI). His election was confirmed unanimously during the 35th UPI Congress, with over two hundred delegates. The ceremony, held at the Protomoteca Hall in the Campidoglio, was graced by the presence of President of the Republic Sergio Mattarella. Gandolfi succeeds Michele de Pascale, who was elected President of the Emilia-Romagna Region after leading UPI for the past five years.
Gandolfi emphasized the importance of placing the reform of Italy’s provinces at the center of political discussion. He also stressed the need to retain resources generated by the provinces rather than transferring them entirely to the central Government, in order to ensure effective local governance. The reform of Italy’s provinces is a central theme of Gandolfi’s agenda. The 2014 Delrio Law significantly reduced the role of provinces, making them often peripheral. During the assembly, Rome’s Mayor Roberto Gualtieri highlighted the need to restore full functionality to the provinces, emphasizing their vital role in local business activities and social sustainability.
A key issue is the management of financial resources. Regional Affairs Minister Roberto Calderoli acknowledged the contentious nature of fiscal transfers from provinces to the state, suggesting the need for reforms in funding mechanisms to enhance the efficiency of these entities.
In a recent meeting of the Council of Ministers, Vincenzo Carbone, the current Deputy Director-General and head of the Taxpayers Division at the Italian Revenue Agency, was appointed as its new Director following the resignation of Ernesto Ruffini. According to sources, Carbone was selected over other contenders, including Roberto Alesse, Director of the Customs and Monopolies Agency, and Gabriella Alemanno, Commissioner of Consob.
Vincenzo Carbone is a distinguished professional in the field of tax law and fiscal management. Carbone has held various leadership positions at the Italian Revenue Agency. In addition, Carbone is the President of the Board of Directors of SOSE SpA and has contributed to various working groups and advisory roles, including providing fiscal assistance to the Chamber of Deputies.
On December 19, 2024, seven new deputy prosecutors were appointed to the National Anti-Mafia and Anti-Terrorism Directorate (Dnaa), led by Giovanni Melillo. The selection process by the High Council of the Judiciary (CSM) was contentious, with heated debates over the candidates, particularly regarding the nomination of Eugenio Albamonte, former secretary of the National Association of Magistrates (ANM).
The seven new appointments are: Ida Teresi, Deputy Prosecutor at the Naples Court; Antonella Fratello, Paolo Sirleo, and Antonio De Bernardo from the Catanzaro Prosecutor’s Office; Federico Perrone Capano from the Bari Court; Giovanni Musarò, Deputy Prosecutor at the Rome Court; and Eugenio Albamonte, who has previously held prominent positions in the ANM. These appointments bring a range of experience and expertise to the Dnaa.
The nominations based on two competing proposals presented by the CSM’s Third Commission. “Proposal A,” supported by the Area and Independent Magistracy (MI) factions, included Albamonte and Fratello, while “Proposal B,” backed by Unicost, suggested Maurizio Giordano (Prosecutor of Naples) and Giovanni Musarò instead. Ultimately, the plenum approved most of the names from Proposal A, while also including Musarò, who was considered one of the strongest candidates from Proposal B.
The deputy prosecutors serve several key functions: Coordinating activities within each DDA and regularly visiting them to track investigations and report back to the Dnaa. Providing legal opinions on matters such as the use of state witnesses, the application of particularly harsh prison regimes (Article 41-bis), and legal aid for impoverished mafia defendants. Managing specific assigned areas of interest, gathering information both directly and through law enforcement or other relevant bodies. Contributing to the National Database of judicial acts and managing relations with foreign judicial authorities involved in related matters.
An agreement was signed in London to establish a joint venture for the Global Combat Air Programme (GCAP), a major step toward the development of the sixth-generation fighter aircraft. The venture involves Leonardo, BAE Systems, and Japan Aircraft Industrial Enhancement Co. Ltd (Jaiec). The joint venture is set to be established by mid-2025, with the aim of having the GCAP in service by 2035. This partnership marks a significant milestone in the collaborative effort between Italy, the UK, and Japan (and possibly Saudi Arabia).
Roberto Cingolani, CEO of Leonardo, expressed his satisfaction with the agreement, emphasizing that the project would involve developing not only the fighter aircraft but also drones and advanced data collection and analysis systems. BAE Systems’ CEO, Charles Woodburn, also highlighted the strategic commitment shared by all the partners. Jaiec’s President, Kimito Nakae, echoed the sentiment, expressing confidence in completing GCAP on time.
The development of the GCAP involves over 9,000 people from three countries, with about 3,000 from Italy. The agreement also highlights the establishment of the intergovernmental organization, Gigo, to oversee the GCAP, with an emphasis on equal responsibility and financial contribution among the three partner nations.
The Italian Government unveiled its strategic plan for the country’s space sector, aiming to position Italy as a global leader in space innovation, competitiveness, and technological sovereignty. The document, titled “Guidelines for the Government in Space and Aerospace Matters,” outlines the country’s vision to enhance its role in the international space community.
The plan addresses four main strategic areas: enhancing public knowledge and societal benefits, strengthening industrial competitiveness, establishing an effective regulatory environment, and identifying key areas for international collaboration.
Among the most innovative aspects of the plan is the establishment of a sovereign fund for dual-use applications, aimed at supporting both national and international strategic enterprises in the space sector.
The document also emphasizes the need for Italy to expand its influence within the European Space Agency (ESA), with a focus on ensuring that the country’s investments in the European space programs are effectively utilized.
General Luciano Portolano, Chief of the Italian Defense Staff, made an official visit to Libya, reaffirming Italy’s commitment to strengthening its strategic presence in the Mediterranean region. Portolano, accompanied by Italy’s Ambassador to Libya Gianluca Alberini, was welcomed in Tripoli by General Luigi Tufano, Commander of the Bilateral Mission in Support of Libya (Miasit).
Libya’s ongoing political instability and the complexity of its internal conflicts make it a key priority for Italy, particularly in terms of security, counterterrorism, and migration management. The visit is part of Italy’s broader strategy to enhance cooperation with Libya. Portolano met with Libyan military authorities and visited Italian troops engaged in the Miasit mission. He expressed Italy’s continued support for a politically inclusive solution in Libya, reaffirming Italy’s backing for the UN’s role in facilitating the country’s stabilization. In parallel, the EU Naval Force Mediterranean (Irini) operation hosted a technical meeting in Rome with the Libyan 5+5 Joint Military Committee, focusing on the development of Libya’s maritime control capabilities.
The Italian Council of Ministers has appointed nine new high-ranking ambassadors, promoting them to ambassadorial status. The appointments reflect the Government’s ongoing strategy to strengthen Italy’s international presence. Paola Amadei, Ambassador to Iran, is the first woman to lead the Italian Embassy in Tehran and took on this role in March 2024. With over 30 years of experience, she has held various prestigious positions.
Vincenzo Celeste, Permanent Representative of Italy to the European Union. Celeste has had a distinguished diplomatic career, including roles as Deputy Head of Mission in London and Deputy Head of Cabinet at the Ministry of Foreign Affairs. Bruno Archi has held numerous key positions, including as diplomatic advisor to the Prime Minister, personal representative for G8/G20, Deputy Minister of Foreign Affairs under the Letta Government.
Massimo Ambrosetti, Ambassador to China, has held key diplomatic roles, including serving as the Permanent Representative to the North Atlantic Council and Ambassador to Panama. He was later appointed as Director for International Strategic Affairs at the National Cybersecurity Agency. Carlo Lo Cascio is the Deputy Secretary-General of the Ministry of Foreign Affairs. Previously Ambassador to Serbia, Lo Cascio has held high-level positions within the European Union and was a coordinator for EU-Africa relations.
Luca Sabbatucci, Permanent Representative to International Organizations in Paris. Sabbatucci, who chairs the OECD External Relations Committee, has also been Chief of Cabinet to the Italian Foreign Minister. Stefano Beltrame, Diplomatic Advisor to the Minister of Economy. Formerly Ambassador to Austria, Beltrame has focused on the Middle East and has held significant positions in Iran, Saudi Arabia, and Shanghai.
Andrea Ferrari, Diplomatic Advisor to the Minister of Justice. Ferrari, who served as Ambassador to Canada, also held roles as Deputy Chief of Cabinet at the Ministry of Foreign Affairs. Andrea Tiriticco, Head of the Crisis Unit. With extensive experience in emergency management, Tiriticco currently serves as the General Inspector of the Ministry of Foreign Affairs.
Italian Foreign Minister Antonio Tajani visited Damascus and Beirut as part of Italy’s diplomatic efforts to support the stabilization of the region. Tajani’s visit, which included meetings with key political figures in both countries. In Syria, Tajani emphasized Italy’s willingness to help the country recover economically and socially, following years of civil war. He also expressed support for lifting sanctions on Syria, stating that they were imposed on the previous regime and should no longer apply.
Tajani further proposed collaboration in crucial sectors such as energy, infrastructure, health, and cultural exchange. He also highlighted the importance of a political transition that is inclusive of all Syrian societal components.
In Lebanon, Tajani met with the newly elected President Joseph Aoun and Prime Minister Najib Mikati. He reiterated Italy’s support for Lebanon’s sovereignty and economic recovery, also emphasizing the vital role of Italian military missions in the region. This diplomatic engagement aligns with Italy’s broader strategy to strengthen its role as a stabilizing force in the Mediterranean, particularly in the context of the shifting geopolitical landscape.
Italian Prime Minister Giorgia Meloni and Turkish President Recep Tayyip Erdogan reaffirmed the growing partnership between Italy and Turkey in a phone call that highlighted shared interests in key geopolitical issues, such as the situations in Syria and Libya, as well as joint economic and industrial ventures. The discussions focused on Italy’s role in the ongoing transitions in Syria and Libya, where both countries aim to foster peaceful processes.
The leaders also touched on expanding economic cooperation, especially in the context of Italy’s ongoing involvement in the Mattei Plan, which aims to enhance cooperation in the Mediterranean. A key development in this partnership is the recent sale of Piaggio Aerospace to Turkish company Baykar, which manufactures the TB2 drones widely used in the Ukraine.
Italy’s economic outlook for the fourth quarter of 2024 remains uncertain, following a stagnant third quarter. The country faces a combination of challenges and opportunities, making it difficult to predict whether it will enter a phase of recovery or continue to struggle with stagnation. Inflation in Italy rose to 1.4% year-on-year, reflecting a slower reduction in energy prices.
Across the Eurozone, inflation remained above the European Central Bank’s (ECB) target, driven by energy prices and high demand. The price of gas in Europe increased to 44 euros/MWh, and further uptick is expected.
Despite the ECB’s recent cuts, the gap between European sovereign bonds is widening, with France’s spread increasing due to political instability and rising debt. Italy’s spread is narrowing slightly, in contrast to that of Spain and Greece. Italy’s industrial sector remains in crisis, with production stagnating and significant declines in sectors like automotive, leather goods, and refined petroleum. Manufacturing Purchasing Managers’ Index (PMI) fell further, indicating continued contraction.
Business confidence continues to decline, reflecting weak demand and low investment, despite some positive indicators earlier in the year. The country’s investments are expected to remain weak. On a brighter note, Italy’s tourism sector continues to thrive, with foreign spending up by 6.9% year-on-year in September 2024. This boost has been a critical driver for the services sector, although signs of deceleration in business optimism suggest that the growth may not be sustainable across all service industries.
Italy’s export sector remains weak, with declining sales to the U.S. and China in particular. After three consecutive declines, exports to non-EU countries fell by 3.5% in October, raising concerns over the impact of global economic conditions and new protectionist measures in the U.S.
Giovanni Liverani has been appointed as the new President of ANIA, the Italian National Association of Insurance Companies. The announcement was made during the association’s general assembly. Liverani will serve as president for the 2025–2027 term. “The insurance sector in Italy is a cornerstone of the country’s socio-economic system: it mitigates risks, addresses savings and pension needs, and supports mlns of families and businesses of all sizes with significant investments,” Liverani remarked.
Until April he served as CEO of Generali’s Germany, Austria, and Switzerland business unit, the group’s second-largest division, managing over €20 bln in premiums. Liverani succeeds Maria Bianca Farina, who has been named Honorary President.
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.
Italy is set to advance its nuclear energy ambitions with the planned introduction of Small Modular Reactors (SMRs), marking a significant step in the country’s strategy for sustainable energy. The proposal for the necessary legal framework is expected to be reviewed by Italy’s Council of Ministers in early 2025, setting the stage for the development of these cutting-edge nuclear technologies. Minister for the Environment, Gilberto Pichetto Fratin, has committed to presenting the proposal early in 2025. The initiative aligns with Italy’s National Sustainable Nuclear Program, driven by the Platform for Sustainable Nuclear Energy.
The focus is on SMRs, advanced modular reactors that offer significantly higher safety levels compared to conventional plants. These reactors, much smaller than traditional nuclear facilities, are ideal for use in industrial areas to provide reliable, low-cost electricity for businesses, as well as heat and hydrogen production to support decarbonization efforts in hard-to-abate sectors.
Enel, along with Ansaldo and Leonardo, is leading the charge to create an industrial framework dedicated to the study and potential implementation of SMRs and later Advanced Modular Reactors (AMRs) in Italy. The Government’s energy strategy is rooted in a balanced mix of renewable energy and nuclear, positioning nuclear energy as a complementary source to support renewable growth without overloading electrical infrastructure. The aim is to gradually introduce 400 MW from nuclear by 2035, increasing to 8 GW by 2050.
African Development Bank (AfDB) and Italy’s Cassa Depositi e Prestiti (CDP) signed an agreement to cooperate under the Growth and Resilience Platform for Africa (GRAf). The deal, signed in Rabat, marks a significant step in Italy’s strategy to foster deeper ties with Africa through the Mattei Plan.
Through the GRAf platform, the two institutions aim to mobilize up to €400 mln over five years, with a focus on critical areas such as food security, support for small and medium-sized enterprises (SMEs), and sustainable infrastructure. The goal is to raise an additional €350 mln from other sources.
CDP has unveiled a new three-year industrial plan designed to mobilize €81 bln, unlocking investments worth up to €170 bln. This new plan is aimed at boosting Italy’s competitiveness, reinforcing its social and territorial cohesion, and supporting the country’s transition to a green economy.
The new plan is built on four key priorities: Competitiveness: Strengthening the business, infrastructure, and public administration ecosystem to promote access to finance, innovation, and business expansion. Social and Territorial Cohesion: Continuing to support the financial needs of communities, with a special focus on less advantaged areas. Economic Security and Strategic Autonomy: Reducing Italy’s reliance on external resources by promoting local industries and technological advancements. Just Transition: Supporting measures for climate adaptation and mitigation, and developing infrastructure for the energy transition and circular economy.
CDP’s strategic plan includes increasing international collaboration, particularly with African countries in alignment with the Mattei Plan. With a focus on sustainable development and leveraging private sector involvement, CDP will also strengthen its engagement with European institutions to expand access to EU funds and enhance its role as a catalyst for both domestic and international investments.
Eni’s continued investment in Côte d’Ivoire’s energy sector underscores the country’s growing influence in West Africa’s oil and gas industry. In 2024, the Italian energy giant made significant strides, not only with the Baleine offshore project but also with the discovery of the Calao deposit, which has the potential to contain 1.5 bln barrels of oil. This discovery is expected to generate substantial revenue and create 8,000 new jobs.
With Baleine already producing 60,000 barrels of oil per day and 2 mln cubic meters of gas, Eni has established two critical production facilities: the floating production, storage, and offloading unit (FPSO) Petrojarl Kong and the floating storage and offloading unit (FSO) Yamoussoukro, enabling the export of oil. Meanwhile, processed gas is supplied to the local energy market via a pipeline.
The Baleine project is particularly notable for being Africa’s first zero-emission upstream initiative. Eni has utilized cutting-edge technologies to minimize the carbon impact of operations, employing locally-made improved cookstoves to benefit vulnerable communities, as well as reforesting 14 areas.
Fincantieri and Sparkle, the telecommunications network division of the TIM Group, have signed a Memorandum of Understanding (MoU) to collaborate on developing advanced technological solutions for the surveillance and protection of submarine telecom cables. Fincantieri, with its strong expertise in the naval industry, aims to establish leadership in the underwater domain. The company plans to leverage its deep knowledge of maritime operations.
This partnership aligns with Sparkle’s efforts to expand its expertise and capabilities within the underwater technology sector, particularly within the National Underwater Hub (PNS), which connects public and private Italian excellence in this field. Sparkle currently manages a proprietary fiber optic network of over 600,000 kilometers, with 90% of it laid undersea across Europe, Africa, the Middle East, the Americas, and Asia.
Asterion, a Spanish private equity fund, is set to make a significant move in Italy by submitting a €700 mln binding offer to acquire Sparkle, TIM’s submarine cable subsidiary. The offer, in collaboration with Italy’s Ministry of Economy and Finance (MEF), signals Asterion’s ongoing interest in the Italian infrastructure market, where it has already established a strong presence. The acquisition of Sparkle, a key player in the telecommunications sector, is part of Asterion’s broader strategy to invest in European medium-sized infrastructure markets, with a special focus on sustainability.
Asterion, headquartered in Madrid, is a major player in the infrastructure investment landscape, particularly in the sectors of energy, telecommunications, and mobility. The fund was founded by a team of former KKR managers, including Jesús Olmos Clavijo, the current CEO of Asterion, and partners Winnie Wutte and Guido Mitrani.
In Italy, Asterion has made significant investments, including the acquisition of a 24.1% stake in Retelit in 2020, which it later increased to a majority stake. Additionally, the fund co-invested with F2i to acquire Sorgenia and is actively involved in energy efficiency services through its investments in Samso and the telecommunications infrastructure of Irideos and Retelit.
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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