Italy's negotiations with Elon Musk's satellite internet company Starlink have come to a standstill, the country's defence minister Guido Crosetto revealed on Saturday.

The potential €1.5 billion five-year contract, which would provide encrypted communications for government, diplomatic and defence officials operating in high-risk areas, has sparked significant political controversy in Italy.

"It seems to me that everything has come to a standstill," Crosetto told newspaper La Repubblica, explaining that discussions had shifted away from technical aspects to "statements" by and about Musk, without elaborating further on those statements.

The polarising figure of the tech billionaire, who serves as a senior adviser to US President Donald Trump, has been at the centre of the political debate surrounding the Starlink discussions in Italy.

Opposition politicians have voiced outrage over the prospect of awarding a national security contract to a foreign businessman with close ties to Trump, particularly after Musk threatened to turn off Starlink's communication system in Ukraine, where it provides telecommunications essential to Kyiv's forces in their defence against Russia's invasion.

Prime Minister Giorgia Meloni's government has placed its alliance with the United States at the heart of Italy's foreign policy, but Trump's actions, which have antagonised Rome's European allies, have forced her into a difficult political balancing act.

Meloni is also under pressure from her coalition partner, the far-right League, to maintain support for Trump and Musk. Matteo Salvini, the League's leader and Meloni's deputy, said on Friday that he had spoken with US Vice President JD Vance and praised "the remarkable American capabilities in key areas such as satellite communications".

Crosetto, who described Musk as a "visionary genius" in the same interview, said technical discussions would resume "when the controversies and the times have calmed down".

"The point is: what is most useful and safe for the nation," the minister added.

Andrea Stroppa, a representative for Musk in Italy, suggested on Saturday that while it makes sense for Italy and its European partners to develop their own independent satellite infrastructure for low-orbit telecommunication, Starlink could be the best short-term solution.

"In the next 3-5 years, there's an operating necessity that should be fulfilled," Stroppa said during a live interview on X.

According to Bloomberg, the Italian government has become more cautious about finalising the deal in the wake of shifting geopolitics. Prime Minister Meloni has reportedly told ministers that alternatives to Starlink should be considered, with Eutelsat Communications SA mentioned as one possible option for secure satellite-based communications.

Starlink, which has around 7,000 active low-orbit satellites, has been offering its services in Italy since 2021.

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