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Italy’s election results may speed up polarization in the EU

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The winner of the September 25 parliamentary elections in Italy was Giorgia Meloni, leader of the far-right coalition Brothers of Italy, which stood out with its heavy criticism and anti-immigration discourse against the European Union’s (EU) economically pioneering countries, especially France and Germany.

Meloni’s victory as the country’s first female prime minister marks a radical change of direction for Italy. On the other hand, this victory is creating concern for Brussels, which needs political unity more than ever due to rising inflation in the Eurozone, the energy crisis caused by sanctions against Russia, and Russia’s ongoing military campaign in Ukraine.

Although Meloni offers her full support to Ukraine for arms aid and anti-Russian sanctions, it is being debated whether Italy will become an inconvenient actor like Poland in the short and medium term for Brussels.

The electoral process

On September 25, the Italians voted on new MPs for the Chamber of Deputies and the Senate. The polls closed at 11:00 pm. Deputies who hold seats in parliament will be fewer than before, as the 2020 constitutional reform has reduced its numbers from 945 to 600. There is a 3% electoral threshold for the parties that participate in the election.

According to exit polls, Brothers of Italy won 26% of the vote while its allied League party stands at 9.5% to 13.5%. Polls showed that former Prime Minister Silvio Berlusconi’s Forza Italia also won 6-8% of the vote.

According to a survey published by the SWG research company, the right-wing coalition, which the three parties are expected to form, garnered between 43% and 47% of the vote.

The right-wing coalition brings together Meloni’s Brothers of Italy, Matteo Salvini’s League party and Silvio Berlusconi’s Forza Italia.

Meloni’s party used to be a junior partner in the center-right coalition. In the 2018 election, Meloni’s party polled at around 4 percent. But after 10 years in opposition seats, Brothers of Italy is stronger than ever.

Following the official results, President Sergio Mattarella will be expected to appoint the new prime minister and deputies.

Mattarella will elect the leader, who has the best chance of winning parliament’s support in the vote of confidence, as prime minister. Mattarella also has the official power to appoint ministers, although he generally appoints them on the advice of the new prime minister.

Components of the right and left coalition

During Meloni’s election campaign, her criticism of French President Emmanuel Macron’s policies sparked a debate.

At the same time, Meloni stated that she aimed to stop the flow of immigration across the Mediterranean and protect Italian companies by, for example, expanding the investment screening to other EU countries.

Matteo Salvini’s League party had a similar schedule and was constantly losing voters to Meloni. Former Prime Minister Silvio Berlusconi, 85, leads the center-right Forza Italia, currently the smallest party in the right-wing alliance.

The leader of the center-left coalition is Enrico Letta’s Democratic Party. Letta, who served as prime minister from 2013 to 2014, supports Draghi’s reform plans while pursuing a social democratic and pro-EU policy. Letta was recently praised by German Chancellor Olaf Scholz.

The center-left coalition also includes minor parties such as liberal +Europa, Sinistra Italiana, Greens and Impegno Civico and The Five Star Movement.

What does Brussels say?

Some EU officials and member states are concerned that Meloni will become Italy’s next prime minister.

EU Commission President Ursula von der Leyen said on September 21 that if things go in a difficult direction after the elections, they have “tools”. During the campaign, however, Meloni sought to reassure the EU institutions and international partners that she was not outside the EU agenda.

However, her conservative discourse and past statements showed the opposite. Meloni wants to restart negotiations with Brussels on projects financed through the country’s post-pandemic recovery plan, arguing that priorities have changed with the current energy crisis.

Meloni also pledged to be cautious in public expenditures, but some member states do not want Meloni on the table during the upcoming EU talks on reforming public expenditures.

Will Rome continue its anti-Russian politics?

Given Meloni’s discourse, Italy’s attitude towards Russia is not expected to change. Draghi’s pro-NATO and pro-Ukrainian stance is shared by the Democratic Party and the third pole.

The right-wing parties were traditionally closer to Russia. But the military campaign, which began on February 25, caused all of them to turn their backs on Moscow.

Meloni took a more radical stance than Berlusconi and Salvini, condemning the “occupation” and supporting EU sanctions. Both Berlusconi and Salvini initially condemned the Kremlin’s move, but later took an increasingly moderate approach towards Russia.

Although Meloni recently supported the sanctions, she opposed the ones imposed after Crimea’s accession to Russia.

‘Italexit’?

The agenda adopted by Meloni and the right-wing coalition suggests that Brussels will have to endure another headache similar to Poland instance. As a matter of fact, Meloni’s statement during the election process was sufficient to describe the situation: “We are facing the most powerful and violent attack against governments of sovereign nations opposing the dictatorship of politically correct ideology.”

Meloni pointed to the EU’s reactions to changes in legislation that allegedly violated EU legislation in Poland and Hungary, as well as its efforts “to humiliate the British people who have freely chosen Brexit.”

Meloni is also the president of the European Conservatives and Reformists (ECR), a pan-European umbrella party that includes Poland’s ruling Law and Justice party (PiS), as well as increasingly influential parties in countries like Spain.

Arguing that Italy should leave the Eurozone in 2014, Meloni accused the 5Stars government, led by Giuseppe Conte in 2018, of “surrendering to the bureaucrats in Brussels” over its decision to follow European spending rules.

More recently, as the only major party in opposition to Prime Minister Mario Draghi’s technocratic government, Meloni abstained in voting on Italy’s recovery plan five times.

The bloc, formed in recent years against the EU under the leadership of right-wing conservative parties in Eastern Europe, achieved considerable success with the Italian elections. The political axis of this bloc is also remarkable, as it matches the political agenda of the United States and the United Kingdom.

Europe

EIB to unveil 15 billion euro tech initiative to scale European startups

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The European Investment Bank (EIB) will announce a €15 billion initiative today, in collaboration with EU capitals and private investors, aimed at supporting the growth of European technology companies.

For decades, startups on the continent have struggled to raise the large-scale funding rounds necessary to scale on this side of the Atlantic, frequently turning to US investors or relocating abroad as they expand.

“We are catching up. Now we need to accelerate,” EIB President Nadia Calviño said.

Under the existing European Tech Champions Initiative, the EIB had already pooled resources with six EU governments to establish funds that invest in high-growth companies across the EU.

Calviño described the initiative as “very successful,” noting that it has supported 12 European “unicorn” companies valued at over $1 billion, including the German artificial intelligence translation firm DeepL.

The bank is now expanding the program with a new phase nearly four times the size of the original.

Twenty-five EU governments, alongside private investors such as Santander and Danske Bank, are expected to participate in the program.

This initial €15 billion aims to mobilize up to €80 billion in total investment. Calviño stated that this estimate is based on the multiplier effects achieved under previous programs.

As part of these efforts, the EIB also aims to attract European pension funds, which manage immense pools of capital but have historically allocated fewer resources to technology investments compared to their US counterparts.

In addition to the new funding, Calviño noted that the EIB will create a platform providing a single point of access for existing European scale-up initiatives, including the European Commission’s Scaleup Europe Fund, France’s Tibi initiative, and Germany’s Win initiative.

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Germany to purchase US Tomahawk missiles to build own long-range strike capability

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Germany will purchase Tomahawk cruise missiles from the United States and deploy them on German territory, Chancellor Friedrich Merz announced on Thursday.

The move marks a shift away from planned US deployments and toward Germany establishing its own long-range strike capability.

Merz told lawmakers that he finalized the agreement with the US government during the NATO summit in Ankara, adding that the talks held on Tuesday and Wednesday had exceeded his expectations.

“While we close a critical strategic gap in our defense, we are also working to develop our own European systems and deploy them in Europe,” the Chancellor said.

According to German government sources, Washington committed in a letter of intent signed on Tuesday to approve Germany’s acquisition of Tomahawk missiles and their land-based Typhon launchers in August.

The number of missiles and launchers Germany plans to purchase was not disclosed because the information is classified.

The planned acquisition appears aligned with US President Donald Trump’s pressure on European allies to cover their own security costs, such as by purchasing US weapons.

The fate of the Tomahawk procurement had become uncertain after Trump announced in May that he would reduce the US military presence in Germany.

That development was seen as a cancellation of a plan made under the previous administration to deploy a US battalion equipped with long-range Tomahawk missiles to Germany.

That original plan was designed as a temporary solution to serve as a strong deterrent against Russia while Europeans developed their own versions of such weapons.

Germany produces its own cruise missile, the Taurus, but its range of approximately 311 miles is three to five times shorter than that of the Tomahawk missiles.

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Apple loses EU court appeal over Digital Markets Act gatekeeper designation

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The General Court of the European Union has rejected Apple’s challenges against its “gatekeeper” status designated under the Digital Markets Act (DMA).

With this ruling, the company’s designated status for the App Store and iOS remains valid, while its applications regarding iMessage were also rejected.

Apple had argued that the five separate App Stores it operates for the iPhone, iPad, Apple Watch, Mac, and Apple TV should be evaluated as distinct, individual services.

The court rejected this argument, ruling that these stores serve a common purpose of connecting developers and users, regardless of the specific device.

The court also dismissed Apple’s defense that the DMA’s interoperability obligations violate its fundamental rights.

However, it did not conduct a substantive assessment on the legality of this obligation, stating that a direct legal link could not be established between the regulation in question and the determination of “gatekeeper” status.

Following the ruling, Apple argued that the obligations under the DMA “exceed the boundaries of legality and proportionality.” The company asserted that the new rules jeopardize the work it has carried out for years to ensure user privacy and security.

Apple retains the right to appeal the decision, though a company spokesperson did not comment on whether there are plans to do so.

Apple previously declared that DMA rules prevented the launch of the updated version of Siri in Europe, resulting in European users being unable to benefit from the service.

In force in the European Union since 2024, the DMA covers a total of 22 services and products belonging to Alphabet, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft.

The regulation obliges these companies to share certain data with competitors, provide access to user-generated data, and offer verification tools to advertising partners.

Additionally, it prohibits platforms from engaging in anti-competitive practices that favor their own products. Companies failing to comply with the rules face fines of up to 10% of their global turnover, which can rise to 20% in cases of repeated violations.

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