Italy close to deal with Musk's SpaceX

Italy's far-right government led by Prime Minister Giorgia Meloni is close to a 1.5-billion-euro ($1.6-billion) deal with Elon Musk's SpaceX that could drive a wedge between the nation and Europe's technology sector.

The deal, which Meloni's government has confirmed is taking shape, would see Italy buy access to secure telecoms provided by SpaceX's Starlink satellite system.

The Bloomberg news agency said the deal, which had been in the works for more than a year, had appeared to have stalled recently but looked to be back on track after Meloni visited United States president-elect Donald Trump at his Mar-a-Lago resort in Florida on the weekend.

Musk, who will become a key Trump advisor when the new administration takes office later this month, confirmed the deal was shaping up, writing on X on Monday that he stands "ready to provide Italy the most secure and advanced connectivity".

Meloni's office said: "Talks with SpaceX form part of the normal dialogue that the government has with companies, in this case with those that offer protected connections for encrypted communications."

But Meloni said it was "simply ridiculous" to claim her meeting with Trump injected new life into the deal, the Politico news website reported.

Italy's Ministry of Defense and its intelligence services have already reportedly signed off on the proposed five-year agreement, that would see SpaceX provide encryption services for Italy's government, and communications channels for the military and emergency services. Italy could also use Starlink to boost internet availability in remote areas of the country, Reuters added.

Italy's Ministry of Foreign Affairs has also said the nation could use Starlink to enhance communications for Italian diplomats operating overseas.

But a deal between Italy and SpaceX would likely anger European technology companies and several of the continent's politicians, especially in light of recent claims that multibillionaire Musk, a South African with US citizenship, has been "interfering" in European politics and expressing strong support for far-right parties.

The European Union has said Italy is free to sign such deals but is also sure to be disappointed about the nation buying encryption services from Musk while the bloc is trying to develop its 10.6-billion-euro IRIS2 system to provide similar services. That technology, however, is unlikely to be available before 2030, and SpaceX has said it can start providing its services to Italy within weeks.

In November, Italy's Defense Minister Guido Crosetto summed up the situation by telling lawmakers on a parliamentary committee that there were few alternatives to Musk when it comes to accessing secure, low-orbit satellites.

"You can like him or not, but if you need low-orbit connectivity, you need to talk to him. You can think about an alternative system, and Europe is doing that, but it'll take 10 to 15 years."