Italian government faces domestic deadlock over EU recovery funds and defense policy

Nexus Europa Newsroom
Posted Jul 31, 2026, 08:00 AM UTC · In the digest of 2026-07-31-0800
Italian government faces domestic deadlock over EU recovery funds and defense policy
Photo: La Stampa

Italy's coalition faces internal friction over PNRR rail funding, EU defense loans, border controls with Spain, and a planned troop deployment to Saudi Arabia.

Italy’s ruling coalition continues to navigate political friction across domestic policy and international affairs. In Parliament, a decree tied to the National Recovery and Resilience Plan remains stalled in the Chamber of Deputies over intercity train tenders, putting up to €3 billion in European Union funding at risk.

Tensions also persist over defense strategy. Foreign Minister Antonio Tajani announced plans to request €14.9 billion from the EU Safe fund for armaments, but coalition partner Lega insisted that parliamentary approval is required. Meanwhile, Prime Minister Giorgia Meloni signaled readiness to suspend Schengen arrangements with Spain following a surge in migration toward Ceuta. In foreign operations, reports confirm Italy will deploy 400 military personnel to Saudi Arabia to protect local airspace against Iranian missiles.

Sources: Corriere della Sera, Il Sole 24 Ore, La Stampa.

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