Europe
Meloni government implicated in spyware scandal, claims victory in referendum failure
Italian Prime Minister Giorgia Meloni experienced a significant setback followed by a major victory within the span of a week.
The setback originated from a parliamentary inquiry into the Israeli spyware, Graphite. The parliamentary committee confirmed that the government had utilized this spyware, developed by the offensive cyber company Paragon, to hack the smartphones of several activists working with migrants.
The committee verified that Paragon supplied Graphite to two Italian institutions, including the country’s foreign intelligence service, starting in 2023. According to the report, the version of Graphite provided did not include the capability to activate a phone’s microphone or camera. Instead, it allowed operators to access encrypted communications on the hacked devices.
The report also confirmed that Graphite exploited a vulnerability in WhatsApp, which Meta detected and fixed in December 2024, just one month before the spyware’s activities were publicly disclosed. A recent report on Israeli television revealed that the discovery of this vulnerability caused panic within Unit 8200, Israel’s military intelligence unit.
Government’s use of Israeli spyware confirmed
The Italian committee also confirmed Meta’s claim that the phones of several activists involved in migrant rights in Italy had been hacked. These activists included Luca Casarini, Giuseppe Caccia, and David Yambio. However, in Yambio’s case, the hacking was carried out by another, unnamed spyware, not Graphite.
According to the committee’s final report, the phone of investigative journalist Francesco Cancellato, known for his criticism of the country’s ruling party, was not hacked by Italian intelligence agencies. The report stated that these activists were legally monitored and that the use of spyware against them was coordinated with the relevant legal authorities in Italy.
Nevertheless, the committee recommended improving the oversight mechanisms that regulate the use of spyware in the country. It also emphasized that Casarini and Caccia were targeted in operations initiated by previous governments before Giorgia Meloni came to power.
Israeli company halts Italian intelligence access
Paragon developed the Graphite spyware, which has been sold to intelligence and law enforcement agencies in Israel, Europe, the US, and Singapore. In January, WhatsApp announced it had detected that approximately 100 user accounts were hacked using Paragon’s spyware.
The list of potential targets included civil society activists and an Italian investigative journalist who had exposed links between Prime Minister Giorgia Meloni’s party and neo-fascist movements.
Unlike Israel’s more famous spyware manufacturer, NSO, Paragon promotes itself as a “clean and responsible” company committed to human rights. This was the first time it faced backlash over allegations of misuse of its spyware, which allows states to access encrypted devices.
After Meta announced the WhatsApp hack, Paragon cut off the Italian intelligence agency’s access to its systems until the results of the ongoing parliamentary commission inquiry in Rome were released. According to a recent report by the Israeli television program Zman Emet (Real Time), Italian officials were so angered by Paragon’s decision that the Italian prime minister reportedly called Prime Minister Benjamin Netanyahu to demand an explanation.
Referendum boycott proves effective
Italy’s attempt to repeal significant labor and citizenship laws through five national referendums failed due to low turnout, which remained at 30%. This participation rate was well below the 50% required for the results to be valid.
According to the Italian Ministry of the Interior, approximately 30% of eligible voters participated in the two-day referendum, which aimed, among other things, to halve the time migrants must live in Italy before they can apply for citizenship.
Although polling was open on Sunday and Monday (June 8-9) until 3:00 PM, turnout never approached the constitutional threshold. The referendums—four concerning the protection of workers’ rights and one on reducing the residency requirement for non-EU citizens applying for Italian citizenship from 10 to 5 years—were declared invalid due to insufficient participation.
The referendum, supported by the left-wing opposition and activist groups, sought to repeal a 1992 law that had increased the residency requirement for non-EU foreigners from 5 to 10 years. Had the referendum succeeded, 2.5 million foreign migrants who have lived in Italy for five years or more would have been immediately eligible to apply for citizenship.
Among those who did vote, support for the “Yes” campaign was overwhelming: about 80% supported the changes to labor laws, while approximately 65% backed the citizenship proposal. However, because the quorum was not met, the results have no legal standing.
The referendum campaign began amid heated debates following Italy’s Olympic gold medal win last year with a women’s volleyball team composed of daughters of African immigrants.
Opposition blames government as ruling party declares victory
The opposition parties, which largely supported the referendums, accused the government of deliberately suppressing turnout by calling for a boycott, thereby discouraging voters from going to the polls. Forza Italia was particularly active in this tactic, drawing criticism for a social media post urging voters to “go to the beach” instead of the ballot box.
As soon as the failure was certain, Prime Minister Giorgia Meloni’s party, Fratelli d’Italia (Brothers of Italy), went on the offensive. The party shared an image of opposition leaders with the caption “You lost,” claiming the referendums were a veiled attempt to weaken the government.
Government officials framed the result as a broader endorsement of the status quo. Deputy Prime Minister Giovanbattista Fazzolari stated, “The opposition tried to turn the five referendums into a vote against the Meloni government. The result is clear: the government has emerged stronger, and the left weaker.”
Once it became clear the referendum would not reach a quorum, Deputy Prime Minister Matteo Salvini announced that his Lega party would push for stricter laws to make naturalization even more difficult. “Citizenship is not a gift,” Salvini said in a statement. “We want stricter and tougher rules to become an Italian citizen. A few more years of residence is not enough.”
In response, Pina Picierno, a Democratic Party deputy and Vice President of the European Parliament, described the outcome as a “deep, serious, and avoidable defeat.” She warned her own side against “political myopia,” adding, “Outside our bubble, there is a country that wants a future, not a settling of old scores.”
Italy’s state broadcaster, Rai, and other mainstream media outlets and newspapers almost completely censored coverage of the referendum. On the Sunday of the vote, the national newspaper headlines barely mentioned it.
Calls for reform from both sides
While the vote exposed Italy’s deep-seated political divisions, it also revealed a rare point of consensus: the current referendum system is facing increasing criticism. Representatives from both the government and the opposition have openly called for its reform, albeit for very different reasons.
Antonio Tajani, leader of Forza Italia and Deputy Prime Minister and Minister of Foreign Affairs, argued that issues put to a referendum should require more signatures and questioned the cost of the current system. “Perhaps the time has come to revise the law,” Tajani said. “Considering the money spent, for example, on the hundreds of thousands, even millions, of ballots sent abroad and returned blank, the signature threshold may need to be raised.”
These remarks drew sharp criticism from referendum supporters. Riccardo Magi, leader of +Europa and chairman of the citizenship referendum committee, called Tajani’s comments “literally shameful,” noting that the government showed no concern for the “much more expensive and scandal-ridden detention centers in Albania.”
“It is dangerous to play with public disillusionment,” Magi warned, announcing he would propose a constitutional amendment to abolish the turnout requirement.
Europe
Serbia’s Vucic criticises KFOR commander over Ibar Bridge withdrawal
Serbian President Aleksandar Vucic has reacted against the KFOR commander who decided to open the main bridge over the Ibar River in Kosovska Mitrovica.
Speaking to journalists during a visit to the new emergency department building of the health centre in Kursumlija, the President announced that he would write a letter to NATO Secretary General Mark Rutte to request that the main bridge over the river not be opened.
This step follows the decision by the Kosovo Force (KFOR) to withdraw from the main bridge dividing North and South Mitrovica after approximately 27 years.
The current commander of the NATO-led Kosovo Force (KFOR) is Major General Ozkan Ulutas.
Italian Carabinieri removed their tents on the northern side of the bridge, marking the start of a gradual withdrawal of the permanent presence of NATO-led international troops.
In a statement to German broadcaster Deutsche Welle, KFOR said that after the completion of the process, it would maintain a visible and strong presence in North Mitrovica and throughout northern Kosovo, and would “continue to contribute to maintaining a safe and secure environment for all communities.”
No statement was made regarding whether the Kosovo Police would take over the security of the bridge.
The newspaper Srpske novine had previously reported that Brussels had confirmed the necessary conditions for opening the Ibar Bridge.
Now, for the first time, a concrete written step is coming from Serbia’s highest official, addressed directly to the head of the Alliance.
“I will send a letter to Rutte this evening. So what can we do? We will fight as much as we can,” Vucic said.
Placing the Ibar Bridge issue within the broader context of relations with Pristina and the West, the President claimed that this was an attempt to exert pressure on Belgrade.
The Serbian leader continued:
“They thought everything was going in their favour; first they broke up Yugoslavia, then Serbia and Montenegro; now they want to separate Kosovo, which Serbia does not and will not accept, and they think they can use this to pressure us.”
Asked by a reporter about growing concerns among Serbs in Kosovo regarding the conduct of Albanian Prime Minister Albin Kurti, Vucic asserted that Serbs were being “harassed with unfounded accusations” and were subsequently not even allowed to prove their innocence.
“This is an act of terror; it stems not only from Albin Kurti, but also from his backers in the West,” Vucic said.
The President cited the case of Nenad Raskovic as an example. According to his claim, media outlets had reported for a month that this individual had been beaten over a gambling debt.
Vucic said hundreds of reports had been published claiming Raskovic had a gambling debt and was beaten by Serbs, but they later admitted to filing lawsuits against two police officers.
The President maintains that the admission that an investigation had been launched against two police officers over their conduct toward Raskovic refutes earlier claims that the beating stemmed from a gambling debt.
He also sharply criticised the KFOR command on this matter:
“What liars, what scoundrels. And the situation of those who support them and open the Ibar Bridge is even worse. Everyone is playing dumb, even the KFOR commander is playing dumb. Tonight I will send a letter to Rutte.”
It remains unclear whether the Serbian president’s letter will affect the timeline for transferring control of the bridge from international troops to the Kosovo Police. According to the Pristina administration’s interior minister, this process has already begun.
Europe
German investment in the US drops to three-year low in first half
German companies reduced their investments in the US in the first half of 2026 to their lowest level in three years.
According to Reuters, this resulted from firms limiting their exposure to Washington’s uncertain trade policies.
Calculations by the German Economic Institute (IW) show that direct investment in the first half dropped by roughly two-thirds year-on-year to 4.3 billion euros ($5 billion).
This marks the lowest level since 2023.
According to the report, which is based on Deutsche Bundesbank data, this figure represents a decline of approximately 80% compared with the same period in 2024.
“This is a continuation of the downward trend observed since the start of Donald Trump’s second term in January 2025,” IW researcher Samina Sultan told Reuters.
Since returning to office, Trump has threatened most of the US’s international trading partners with tariffs in an effort to extract concessions advantageous to Washington.
For instance, to avert steep tariffs on its exports to the US, the European Union signed an agreement last year that included an investment pledge of $600 billion.
Data show that during the five years preceding the COVID-19 pandemic, first-half investments by German companies in the US averaged 15.8 billion euros. That figure is nearly four times the 2026 level.
However, Sultan noted that the 2020–2023 period was shaped by the “extraordinary circumstances” of the pandemic, with net investment outflows recorded in certain years.
Researchers also examined the composition of investment flows throughout 2025 and found that both direct investment loans and reinvested earnings were exceptionally high, whereas equity capital in the narrower sense—the balance between new investments and liquidations—remained below average.
“Consequently, companies already operating in the US continue to reinvest the profits they generate there back into the country. This shows that the US remains an attractive market overall,” Sultan said.
On the other hand, Sultan added that companies are hesitant to commit fresh capital.
European governments are also growing increasingly cautious regarding American investments in the Old Continent.
According to an assessment by The Economist magazine, while US firms do not hold a large share of overall investment in Europe, they are concentrated in critical sectors.
Two-fifths of the business that American firms generate from foreign governments comes from the IT and defence sectors, where switching to new suppliers is costly and complex.
At an aggregate level, the magazine estimates that American companies account for a relatively small share of public spending abroad.
Of the $25 trillion in sales generated by listed American companies last year, roughly $500 billion (or 2%) came from foreign governments.
This corresponds to approximately 7% of public procurement across non-US OECD countries, which account for the vast majority of that spending.
Some countries are more dependent than others. In terms of the volume of government contracts won by American firms last year, figures from data provider TenderAlpha show that Australia (6% of contracts) and the UK (4%) are more reliant than France (2%) and Germany (1%).
Europe
Iran weighs strikes on US bases in Europe if tensions escalate
The Iranian leadership is weighing the option of striking American military facilities in Europe should US President Donald Trump escalate tensions.
According to a report by the Financial Times citing two sources close to Iranian officials, Tehran has worked on potential strike plans targeting American facilities in Southeastern Europe. In this context, Bezmer Air Base in Bulgaria, used by the US military for aircraft refuelling, alongside Cyprus, which hosts British military bases, were listed among potential targets. Iran was also reported to have evaluated the possibility of attacking undersea fibre-optic cables in the Strait of Hormuz.
The sources stated that in the event of a new conflict, Tehran could expand its strike range beyond the borders of the Middle East. One source said: “If the US goes too far, Iran will defend itself at all costs, go beyond the region’s borders, and strike Europe.”
The Tehran government has previously attempted strikes against long-range targets. The US announced in February that missiles were launched towards the Diego Garcia base in the Indian Ocean, while Türkiye stated in March that it intercepted Iranian-origin ballistic missiles in mid-air. The report noted that Tehran might find it more convenient to act through allied groups in Iraq, Lebanon, and Yemen rather than via direct action.
Iran accelerates preparations for potential major conflict
According to a report by The Wall Street Journal citing Iranian and Arab officials, Tehran has prepared a comprehensive plan against the possibility of conflict reigniting in the Middle East. Sources indicated that Tehran views the memorandum signed with the US in June as an attempt by Washington and Israel to buy time ahead of a new offensive.
Iran has been conducting preparations over the past two months against the prospect of an expanded conflict. The report noted that officials have increased Islamic Revolutionary Guard Corps oversight of the regular armed forces, appointed veterans of the Iran-Iraq War to key posts, expanded counterintelligence operations, and accelerated missile and drone production.
Data from Arab intelligence services indicates that Iran also maintains contact with armed groups in Yemen and Iraq. Tehran’s objective is reportedly to raise costs for the US and prevent a recurrence of the previous conflict.
The Wall Street Journal sources also reported that Tehran expects attempts to instigate domestic unrest. Commenting on the matter, Mehdi Mohammadi, an adviser to Iran’s chief negotiator, said: “Iran is ready for a major conflict.”
The war between the US and Iran began in February. The two countries signed a ceasefire memorandum in June, but the resulting agreement lasted only a few weeks. Following the resumption of hostilities, Iran maintained its naval blockade in the Strait of Hormuz, while the US continued its blockade of Iranian vessels and ports.
Negotiations for a new agreement are currently suspended. Trump stated that the US is maintaining negotiations and economic pressure on Tehran, adding that ending the Iranian nuclear programme remains one of the primary goals of the American operation. However, citing its own sources, Al Arabiya reported on 17 August that Washington and Tehran had extended the peace agreement.
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