Southern Europe

The economy is dominated by energy market pressures and a major infrastructure crisis. Eni's CEO called for a suspension of the EU's planned Russian gas ban, while the company also discovered a large gas field off Egypt. Concurrently, ministers are meeting with Prime Minister Meloni to address a huge sinkhole that has cut Italy in half.

• 7EU antitrust authorities raid Nutella maker Ferrero's offices
• 6Delfin restructures with Del Vecchio increasing stake to 37.5%
• 6Ferrari Sets Price for First Electric Car at Around €550,000
• 6Spanish oil company Repsol regains control of operations in Venezuela
• 6Eni CEO calls for EU to suspend planned ban on Russian gas imports

Italian foreign policy is in a state of confrontation with Israel and under fire from Donald Trump. Italy suspended its defense agreement with Israel and summoned its ambassador following a UN vehicle incident. Trump repeatedly criticized Prime Minister Meloni, with Iran mocking the dispute.

• 56Trump criticizes Italian Prime Minister Meloni, saying he is 'shocked'
• 25Trump criticizes Italy's leader, Iran mocks the dispute
• 15Report: Pentagon officials float punitive measures against NATO members, including suspending Spain
• 15Sanchez reacts to US plans to punish Spain
• 13Meloni defends security decree and describes conversation with Trump

Security dynamics are defined by a deepening rift with Israel and regional defense realignments. Italy suspended defense cooperation with Israel after an Israeli warning shot damaged an Italian UNIFIL vehicle. Meanwhile, Greece finalized a major missile system purchase from Israel, and Russia-linked hackers breached Greek military email accounts.

• 11Gunman opens fire at two locations in Athens, five wounded
• 5Israel to sell PULS systems to Greece for $750 million
• 45 injured in shootings in Athens, suspect at large
• 3Italian frigate also ready for Hormuz, in addition to 2 minesweepers (3)
• 3++ Italy navy plans to send four ships to Hormuz ++

The dominant societal tension revolves around migration policy, with Spain taking decisive action to regularize undocumented migrants. Spain approved granting legal status to around 500,000 undocumented migrants and finalized its amnesty plan, a move that stands in contrast to other regional approaches.

• 10Russian TV insults Italian PM Meloni, Mattarella shows solidarity
• 7Meloni criticizes Swiss hospital for billing victims of New Year's Eve bar fire
• 4Pope Francis left an indelible mark on peace says Mattarella
• 4Spain approves granting legal status to around 500,000 undocumented migrants - EL PAÍS English
• 4Meloni says Trump's words about Pope are unacceptable