Today's News — April 12, 2026

HEADLINE: Meloni digs in as economy struggles amid geopolitical chaos

Front Pages

Meloni: "I will serve until the end of my term"

• What happened: Prime Minister Giorgia Meloni has firmly declared her intention to remain in office until the natural end of her mandate, aiming to stabilize her leadership following last month’s major referendum defeat.
• Why it matters: This comes at a tense time; the referendum significantly weakened Meloni's authority. Although coalition partners Tajani and Salvini have ruled out snap elections, the government's long-term stability remains a major point of speculation.

Meloni asks EU to relax deficit rules over Iran crisis

• What happened: Speaking to Parliament on Thursday, April 9, Meloni argued that the EU should consider a temporary suspension of budget deficit rules—similar to the measures taken during the COVID pandemic—should the US-Iran-Israel conflict escalate and drive energy costs even higher.
• Why it matters: Italy is already exceeding the EU’s 3% GDP deficit ceiling. Meloni’s proposal highlights growing concerns over public fiscal stability as the economy slows due to energy shocks stemming from the Middle East conflict.

Leonardo: CEO Cingolani set to be replaced

• What happened: According to two sources cited by Reuters, the government is preparing to replace Roberto Cingolani as CEO of the state-controlled defense group, Leonardo. This would be a major move in the current shuffle of leadership at state-owned firms.
• Why it matters: As one of Europe's largest defense contractors, Leonardo’s leadership is strategically vital as the continent ramps up military spending. The leadership change comes during a period of massive reassessment for defense investments.

Air traffic controller strike on April 10 leads to cancellations

• What happened: Italian air traffic controllers held a strike on Friday, April 10, from 1:00 PM to 5:00 PM, resulting in significant flight delays and cancellations across the country.
• Why it matters: The strike disrupted thousands of travelers during a busy period. It reflects rising tensions in the aviation sector, which is already feeling the economic strain of high fuel prices tied to the Middle East conflict.

Economy and Business

Service sector contracts for first time in 16 months

According to Reuters data, Italy's service sector contracted in April for the first time in 16 months. The government is expected to lower its 2026 growth forecast to roughly 0.5% this month, down from the 0.7% projected last autumn. The conflict in Iran is cited as a primary driver of this economic downturn.

Industrial production up only 0.1% in February; outlook worsening

Italian industrial output grew by a meager 0.1% in February compared to the previous month, failing to meet hopes for a strong rebound following two consecutive declines. Analysts warn the outlook is darkening, with geopolitical uncertainty and rising energy costs taking a toll on manufacturing firms.

Confindustria: 0.5% growth forecast was "optimistic"

Confindustria, the leading Italian industrial lobby, had previously warned that the 0.5% growth projection for 2026 relied on the "optimistic" assumption that the Iran conflict would conclude by late March. With the fighting continuing, growth prospects are deteriorating, directly impacting energy costs for households and businesses.

Global News

US-Iran ceasefire under strain; Strait of Hormuz at standstill

Despite the ceasefire, shipping traffic through the Strait of Hormuz has dropped to less than 10% of normal volumes, with the Iranian Revolutionary Guard signaling a halt to shipments. The White House insists the Strait "must remain open." This is a major concern for Italy, as over 20% of European crude imports pass through the Strait; a prolonged closure would spike oil and gas prices, further weakening Italy’s fragile economy.

Israel attacks Lebanon: 200+ dead

Despite the ceasefire with Iran, Israeli strikes in Lebanon have resulted in over 200 deaths and 1,000 injuries, according to the Lebanese Health Ministry. Meanwhile, Netanyahu has authorized direct negotiations with Beirut to discuss disarming Hezbollah and normalizing bilateral relations. Italy, which has over 1,000 UNIFIL troops in Southern Lebanon, is closely monitoring the situation.

Hungary votes Sunday: End of the Orbán era?

Polls suggest Viktor Orbán could lose his grip on power after 16 years in Sunday's Hungarian election. A change in government in Budapest would have major implications for Italy and the EU, as Hungary has been a key ally of Meloni in the "sovereigntist" bloc. A defeat for Orbán would shift the political landscape in Brussels.

Things to watch

1. Hungarian elections and the future of the EU "sovereigntist" axis If Orbán loses on Sunday, Italy may find itself more isolated in its efforts to relax EU budget rules. Keep an eye on the results and the initial reactions from Brussels and Rome.

2. The stability of the US-Iran ceasefire and the Strait of Hormuz Every day the Strait remains essentially blocked adds pressure to energy prices. If traffic doesn't normalize soon, expect gas prices to rise further, impacting inflation and utility bills.

3. Meloni’s future post-referendum Meloni has stated she intends to stay, but the referendum loss has weakened her standing. Check the latest polls (updated April 12 on politpro.eu) to see how much support has eroded, and watch for internal coalition tensions.

1 sources

politpro.eu

politpro.eu

Number of the day

Less than 10%: That is the percentage of normal shipping traffic currently moving through the Strait of Hormuz following the US-Iran ceasefire. Normally, about 20% of the world's oil passes through this route. This number highlights the very real threat of a new energy price surge—just as Rome is pleading with the EU for leniency on deficit rules.