Southern Europe

The regional economy is resilient, with major foreign investment and corporate growth offsetting external trade threats. Amazon is investing billions in Spain, while Inditex posted a sales uptick. However, Trump's threat to cut off all trade with Spain and US tariffs dented Lamborghini's profits.

• 30Trump threatens to cut off all trade with Spain
• 8Amazon invests billions in Spain while Chinese tech firms showcase AI at Barcelona trade show
• 5Milan bourse closes 0.81% up on Trump's comments on Iran war (3)
• 5Zurich buys Generali's Irish insurance business for €337 million
• 4Lamborghini 2025 profit dented by US tariffs and EV U-turn

Politics is dominated by a defiant stance against US-led military action in Iran and a major domestic defeat for Italy's government. The Spanish leader defied Trump's pressure, saying 'no to war', and Spain withdrew its ambassador to Israel. In Italy, voters rejected the government's justice reform in a referendum, and a minister resigned.

• 33Italian voters reject government's justice reform in referendum
• 32Spanish leader says 'no to war' in Iran, defying Trump's pressure
• 13Italy's leader says country will not join US and Israel in attacking Iran
• 13US says Spain agreed to military cooperation on Iran, Spain denies any deal
• 12European leaders discuss Iran tensions and rule out joining a war

Security is on high alert due to direct drone attacks on a British base in Cyprus, triggering a multinational military reinforcement. An Iranian-made drone hit the base, prompting Britain, France, and other European countries to send warships and air defenses. Spain later closed its airspace to US military aircraft involved in the Iran conflict.

• 24Spain closes its airspace to US military aircraft involved in Iran conflict
• 19Britain and France send warships and air defenses to Cyprus after drone strike
• 14UK military base in Cyprus hit by drone as Iran conflict widens
• 12Iran fired missiles toward Cyprus where British troops are stationed
• 9Cyprus on alert as drone threat prompts security measures

Society is marked by public anger against the Italian government, manifesting in street protests. Protesters in Rome burned images of Prime Minister Meloni and Justice Minister Nordio following the failed justice reform referendum. Other events, like a government feud in Madrid over Shakira concerts, are secondary.

• 5Protesters in Rome burn images of Prime Minister Meloni and Justice Minister Nordio
• 4Italy sees snow, waves up to 10 meters, and gale-force winds as winter's tail strikes
• 3Madrid government feud escalates over Shakira concerts
• 3Lombardy man becomes first Italian human bird flu case (3)
• 3Charter flight with 127 Italians from Dubai and Oman departs from Muscat to Italy