Italy faces coalition strains over EU recovery funds, defense spending, and border policies

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Posted Jul 31, 2026, 01:30 AM UTC · In the digest of 2026-07-31-0130
Italy faces coalition strains over EU recovery funds, defense spending, and border policies
Photo: Il Sole 24 Ore

Italian Prime Minister Giorgia Meloni expressed readiness to suspend Schengen rules with Spain as coalition disputes stall EU recovery funds and defense spending plans in Rome.

Italian Prime Minister Giorgia Meloni stated Rome is prepared to temporarily suspend Schengen open-border arrangements with Spain following a migration surge in Ceuta, where thousands of migrants swam to the enclave.

Domestically, coalition friction continues to stall key legislation. The Chamber of Deputies delayed a vote on a recovery plan decree, placing between €1 billion and €3 billion in rail funding at risk due to disagreements over passenger train tender rules. Simultaneously, Foreign Minister Antonio Tajani announced plans to request €14.9 billion from the European Union's Safe fund for defense acquisitions, though coalition partner Lega insisted parliament must approve the decision.

Additionally, lawmakers postponed a vote on public facial recognition software after EU officials warned that such technology violates the block's AI Act.

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

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