Will Italy’s use of Elon Musk’s satellites affect a key EU project?

Italy’s government is reportedly in advanced negotiations with Elon Musk’s SpaceX regarding encryption systems for government communications via the Starlink satellite network, but could such a deal be at odds with the country’s hefty commitment to the EU’s nascent competing IRIS², set to launch in 2029?

The proposed five-year contract with SpaceX, valued at €1.5 billion, would be the largest of its kind in Europe and progressed during the recent meeting between Italy’s Prime Minister Giorgia Meloni and Musk at Mar-a-Lago, Donald Trump’s Florida residence.

The day after the meeting, Italy’s government denied signing any contracts with SpaceX.

However, its acknowledgement of ongoing discussions has raised concerns among industry insiders and politicians, especially given Italy’s stake in the EU development of the competing satellite network, IRIS², set to launch in 2029.

The European Commission told Euronews that an eventual participation of Italy in Starlink is a matter of national competence and that EU member states can participate in IRIS² and sign additional contracts at a national level.

“For sure, Italy will be part of the IRIS² project,” commented a Commission spokesperson.

What we know so far

While denying any finalised agreements, Italy has not dismissed its talks with SpaceX, initially leaving its commitment to the EU-led IRIS² project in question.

“Talks with SpaceX are part of the normal discussions that the state departments have with companies,” Giorgia Meloni’s office said in a statement.

Elon Musk echoed enthusiasm for collaboration, stating on X (formerly Twitter) that SpaceX is “ready to provide Italy the most secure and advanced connectivity.”

Already active in Italy since 2021, Starlink serves approximately 50,000 customers but could expand its services to include emergencies, such as disasters or terrorist attacks.

Musk’s Space X is also developing another project for defence and sensitive operations called Starshield, with which Italian security minister Guido Crosetto defended involvement during a parliamentary hearing, arguing Musk’s dominance over low-Earth orbit connectivity makes him an indispensable partner.

“Europe is working on an alternative system, but it’ll take 10–15 years,” Crosetto said.

The European project

The EU’s project IRIS², an €11 billion initiative, aims to create a secure, multi-orbital satellite network for EU governments and businesses.

Slated to begin operations in 2030, it is designed to reduce reliance on non-EU players like Musk’s SpaceX or Jeff Bezos’ Kuiper.

“In times of crisis, we cannot afford to be too dependent on countries or companies outside the EU,” said Andrius Kubilius at the signing of a 12-year concession contract for IRIS² in mid-December.

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Kubilius, the bloc’s first-ever defence and space commissioner, described IRIS² as a “paradigm shift for Europe” that will explicitly contribute to the security and defence needs of member states, as it will also allow for secure military communications in the future.

Italy might face the risk of service duplication if it moves forward with both Starlink and IRIS².

Consequences for Italy

While SpaceX offers immediate capabilities, Italy plays a pivotal role in the development of IRIS², the EU’s flagship satellite project.

Italy is set to host the main operations centre for IRIS² at its centrally located Fucino Space Centre. Already one of the largest civil space centres in the world, Fucino manages the European Galileo satellite navigation system.

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It is poised for a €50 million expansion to support IRIS², creating 200 new jobs and further cementing Italy’s role in European space infrastructure.

Additionally, Italian aerospace companies like Leonardo are key contributors to the European Space Agency’s (ESA) satellite launch technology. Leonardo’s subsidiary, Avio, is the prime contractor and manufacturer of the Vega-C launcher, with its successor, Vega-E, planned for deployment between 2027 and 2028 to support IRIS² launches.

Despite these strategic investments, some EU lawmakers have expressed concerns about Italy’s potential deal with SpaceX.

“If you value ‘Made in Italy,’ don’t sign a satellite deal with Musk,” said MEP Christophe Grudler (Renew Europe/France) on X.

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He argued that the EU’s GovSatCom programme, launching this year, offers a more cohesive approach for pooling satellite capacity among Italy, France, Luxembourg, Greece, and Spain.

Broader Implications for Europe

Another critical issue is the potential exposure of sensitive Italian data to SpaceX, which could have wider ramifications for European security and defence.

Apart from risks of service duplication for Italy if it moves forward with both Starlink and IRIS², critics also warn of economic consequences.

Former Italian PM Mario Draghi noted in his competitiveness report that Starlink’s rapid expansion has disrupted European telecom operators and satellite manufacturers.

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The report highlighted that the EU has already lost its leadership in commercial launchers and geostationary satellites, while also lagging behind the US in key space markets, such as rocket propulsion, mega-constellations, and satellite applications.

As the debate unfolds, Italy’s decision will not only influence its own technological trajectory but could also have lasting impacts on the EU’s ambitions for autonomy in space.