Germany and Italy forge new alliance to reshape Europe's migration and security policies
A new political alliance between Germany and Italy is reshaping Europe's priorities. Chancellor Friedrich Merz and Prime Minister Giorgia Meloni signed an expanded bilateral plan on 23 January 2026, focusing on migration and security. Meanwhile, Volkswagen stands firm on its electric vehicle strategy despite shifting US climate policies.
On the financial front, the US pushes for stricter crypto regulations under the proposed 'Clarity Act'. In India, Air India faces penalties for operating flights without proper certification.
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni strengthened their partnership during government talks in Rome. Their updated action plan, signed on 23 January 2026, builds on a 2023 agreement but raises ambitions in migration control, defence, and economic cooperation. The shift marks a departure from the traditional Franco-German approach, prioritising stability and security over deeper EU integration.
Migration policy now sits at the heart of this alliance, though exact EU-wide changes remain unclear. Leaders argue that tighter controls will bring short-term stability and support long-term economic growth. The move reflects a broader conservative turn in European governance.
Across the Atlantic, US Treasury Secretary Scott Bessent called on Congress to accelerate the 'Clarity Act' by spring. The bill would impose strict rules on crypto firms, including mandatory audits, board oversight, and tighter internal controls. Supporters claim it will bring much-needed stability to the digital asset market.
In the automotive sector, Volkswagen continues its push for electrification despite the US rolling back climate regulations. The company insists its long-term strategy remains unchanged, focusing on future demand for cleaner vehicles rather than political shifts.
India's aviation regulator fined Air India $110,350 for operating an Airbus A320 on eight commercial flights without a valid airworthiness certificate. The penalty highlights ongoing scrutiny of airline safety compliance in the region.
The German-Italian partnership signals a clear shift in Europe's political direction, with migration and security taking precedence. Volkswagen's unwavering commitment to electric vehicles contrasts with US policy changes, while stricter crypto rules loom in the US. Air India's fine serves as a reminder of regulatory enforcement in aviation safety.
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