Italy Halts Starlink Deal as Elon Musk Faces Political Backlash

Italy has frozen talks on a proposed €1.5 billion contract with Elon Musk’s Starlink satellite internet service, citing growing controversy surrounding the billionaire. Italian Defense Minister Guido Crosetto confirmed that negotiations have stalled due to the political and personal controversies surrounding Musk.

“Everything has come to a standstill, partly because the topic has shifted from Starlink to statements by and about the person,” Crosetto said during a recent interview.

The decision comes amid an escalating debate in Italy over encrypted satellite communications for government use in high-risk zones. While Prime Minister Giorgia Meloni’s administration had been considering Starlink, opposition parties have raised concerns over relying on a U.S.-based provider controlled by Musk. The debate intensified following reports suggesting the U.S. might restrict Starlink access in Ukraine if certain mineral deals are not secured, although Musk denied those claims.

The situation reflects broader European concerns about dependency on non-European technologies for critical infrastructure. France’s Eutelsat is being considered as an alternative to Starlink.

Meanwhile, Musk’s close ties with former President Donald Trump and his promotion of Tesla from the White House lawn have drawn criticism. Analysts say the political alignment is damaging Musk’s business interests globally. In Europe, Tesla sales dropped 58% in the first two months of the year, a trend experts attribute partly to Musk’s controversial image.

Tesla has also faced public backlash, including vandalized dealerships, burnt vehicles, and protests across Europe. In Berlin, activists projected an image of Musk making a Nazi-like salute onto a Tesla factory, highlighting the deepening divide.