Italian government faces legislative deadlock over EU recovery funds and defense request

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Posted Jul 30, 2026, 11:30 AM UTC · In the digest of 2026-07-30-1130
Italian government faces legislative deadlock over EU recovery funds and defense request
Photo: Il Sole 24 Ore

Italy's coalition faces parliamentary stalls over EU recovery funds and defense purchasing, alongside court details on Russian espionage and modest 0.2% Q2 GDP growth.

Italy's ruling coalition is facing internal division and legislative friction across multiple fronts. In parliament, a deadlock over the National Recovery and Resilience Plan decree has halted progress in the Chamber of Deputies due to disagreements over European Union-mandated tenders for Intercity train services, putting up to €3 billion in funding at risk.

Concurrently, Foreign Minister Antonio Tajani's proposal to request €14.9 billion from the EU's Safe defense purchasing fund continues to draw pushback from coalition partner Lega, which insists parliamentary approval is required. Meanwhile, court documents in Milan revealed Russian intelligence agencies recruited ordinary Italian citizens to gather NATO data. On the economic front, national statistics office Istat reported a 0.2% GDP expansion in the second quarter, aligning with growth in France and Germany.

Sources: Corriere della Sera, Il Messaggero, Il Sole 24 Ore.

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