Italy halts €1.5B Starlink deal amid Elon Musk's political controversies
Italy has paused negotiations for a €1.5 billion satellite deal with Elon Musk’s Starlink. The move follows growing concerns over the billionaire’s political ties and recent controversies. Defence minister Guido Crosetto confirmed that talks have now stalled. The Italian government, led by Prime Minister Giorgia Meloni, had been considering Starlink for encrypted satellite communications. But opposition parties raised alarms about Musk’s influence, particularly his control over Ukraine’s connectivity during the war. Their warnings added pressure to abandon the deal.
Meanwhile, Musk’s political leanings have sparked wider backlash. Tesla’s European sales dropped 58% in the first two months of this year. Protesters have vandalised dealerships and charging stations, while activists projected an image of Musk appearing to make a Nazi-like salute onto Tesla’s Berlin gigafactory. The company’s stock has also fallen by 40% since January.
In the US, Musk’s ties to former President Donald Trump have deepened. Last week, Starlink was installed at the White House, and Trump publicly urged supporters to buy Tesla vehicles and shares. These developments have further complicated Italy’s decision on whether to proceed with Starlink or opt for a rival provider. The stalled contract leaves Italy weighing alternatives for secure satellite services. With Starlink’s future in doubt, the government must now decide between other providers or renegotiating terms. The outcome will depend on both technical needs and political considerations.
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