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    Headlines

    Posted By Global Banking and Finance Review

    Posted on March 7, 2025

    Featured image for article about Headlines

    ROME (Reuters) - Italy's co-ruling League party is pushing Rome to pick U.S. company Starlink over French-led operator Eutelsat in talks to obtain systems for secure satellite communications, saying Starlink's technology is more advanced.

    Prime Minister Giorgia Meloni's government aims to guarantee encrypted communications between the government, diplomats and defence officials operating in risky areas.

    Reuters reported this week that Eutelsat is among companies in talks with the government along with U.S. billionaire Elon Musk's Starlink, which dominates the sector with 6,700 active satellites against just over 600 owned by Eutelsat.

    "In the Italian interest it would be odd to choose a French entity instead of a more technologically developed and avant-garde system like the American one," the League said in a statement late on Thursday, without naming the two companies.

    Matteo Salvini's far-right League, part of the Italian ruling coalition along with Meloni's Brothers of Italy and the more moderate Forza Italia, is a strong supporter of U.S. President Donald Trump to whom Musk is a close adviser.

    In an interview with Bloomberg TV on Thursday, Eutelsat CEO Eva Berneke confirmed discussions were going on with Italy, which is looking for a solution to its immediate needs amid delays in the development of the EU's IRIS² satellites.

    "What we can do until IRIS² gets there is what the Italians are looking at, and we are in discussions with them because right now there are Starlink and us who have low constellations in orbit," she said.

    After the interview, sources in Meloni's office said Italy had not entered formal negotiations with Eutelsat or other operators and any decision would be taken "in full compliance with institutional procedures and with the utmost transparency".

    Opposition parties in Italy questioned the advisability of giving a key national security contract to Musk, whose company is currently under the spotlight amid suggestions it could cut off Ukraine from Starlink, hurting satellite communications that play a key role in Kyiv's ability to fight Russia's invasion.

    "We are certain that, in a delicate phase like this, every choice must be weighed exclusively in the name of Italy's national interest, without ideological prejudice, considering the U.S. an indispensable partner for the security and growth of our country," the League party statement said.

    Musk welcomed the League's position on his social network X.

    "Much appreciated," he wrote in a comment to an English translation of the statement.

    (Reporting by Angelo Amante and Elvira Pollina, editing by Gavin Jones and Mark Heinrich)

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