By Rob Waldeck and Joe Fionda
According to an interview with Italy’s Defense Minister Guido Crosetto in Italian daily La Repubblica, talks regarding a proposed $1.55 billion SpaceX bid to provide encrypted Starlink broadband services to Italy’s military, police, and diplomatic corps have collapsed. The proposed sale is the subject of an ongoing bribery investigation in Italy, first reported by The (b)(7)(D) earlier this month.
Crosetto told La Repubblica that “everything has come to a standstill, partly because the topic has shifted from Starlink to statements by and about the person [Elon Musk].” Recent news reports indicated that Musk’s role in the Trump administration and his comments had provoked a sharp backlash in Italy.
The corruption investigation into SpaceX centers around 31-year-old Andrea Stroppa, described in court papers as “Musk’s man in Italy.” Italian press reports, citing the court papers, stated that Italy’s Guardia di Finanza alleged Stroppa had obtained documents and inside information about the Italian government’s evaluation of SpaceX’s proposal from an Italian naval officer on the Italian Defense General Staff, Frigate Captain Antonio Masala. The press reports added that court documents allege that Stroppa agreed that SpaceX would provide subcontracts to two companies in which Masala held secret interests.
The SpaceX investigation grew out of a larger probe into Sogei, a state-owned procurement company. In mid-October, the Guardia di Finanza arrested Sogei’s Director General and accused him of directing contracts to favored companies in exchange for payments and favors.
In an interview with Il Foglio, Stroppa described his role at SpaceX: “I study projects. I talk to technicians. I talk to companies. I explain how Musk's products work and why those companies should become Starlink customers,” a group which included “Italian institutions and the state.”
Press reports indicate that Musk’s SpaceX first approached the Meloni government in the fall of 2023 about selling encrypted Starlink communications to the Italian government.
Stroppa could not be reached for comment at press time. A lawyer for Masala did not return a request for comment.
In December, Meloni told the press that Starlink was under consideration for the secure communications contract but denied negotiating with Musk directly. In January, Musk announced that he was ready to provide satellite services to the Italian government.
Musk’s alliance with Trump, coupled with Trump’s favoring of Russia in the Ukraine conflict, appears to have derailed Musk’s pursuit of billions in Italian government funds. In recent weeks, the Meloni government has begun to distance itself from the Starlink broadband proposal. On 19 February, Industry Minister Adolfo Urso informed the Italian Chamber of Deputies that the Meloni government was developing a proposal for an Italian low-orbit communications network in collaboration with Italian companies.
Among those strongly opposed to allowing a foreign corporation to control the secret communications of the Italian state is Italian President Sergio Mattarella, according to reporting from Bloomberg News.
Nevertheless, on 6 March, the Italian Parliament rejected an amendment to the Space Bill proposed by the opposition Partito Democratico which would have required the Italian government to use European and Italian satellite companies to provide Italy with secure communications. But four days later, the Starlink bid was losing support. After Stroppa posted on X that Mattarella was blocking the deal, Musk responded, saying that he would be honored to meet with the Italian President.
Musk has continued to support Stroppa. Days after the first stories about Stroppa and the corruption proliferated in the Italian press, Stroppa took to X to rally support. On 17 October Stroppa posted a Lord of The Rings meme with the caption, “Never give up.” One minute later, Musk replied, “Never.
But Italian politicans in Meloni’s ruling coaltion appear to be less supportive of Musk. When asked by La Repubblica if he liked Musk, Crosetto dodged the question, responding “He is a visionary genius who brought about a real revolution, more in space than in cars.”