Italy has earned public praise from US President Donald Trump following a contentious NATO summit in Ankara, where rifts over Iran policy and defense spending exposed deep fractures within the transatlantic alliance. Trump declared the peace deal with Iran "over" and singled out Spain as a "bad" partner while calling Italy "good"—a distinction that carries both diplomatic weight and practical consequences for residents and businesses tied to transatlantic relations.
Why This Matters
• Rome maintains access: Italy's cooperative stance ensures continued use of NATO infrastructure on Italian soil, preserving jobs and economic activity linked to US military presence.
• Energy and trade stability: Italy's alignment with Washington may strengthen its position in transatlantic trade negotiations and energy security discussions.
• Spain faces isolation: Madrid's refusal to align with US Iran policy has drawn direct commercial threats from the White House.
Recent Diplomatic Tensions
Trump announced that negotiations with Tehran have encountered significant obstacles. Speaking from Ankara, Trump called Iranian leadership "crazy, out of their minds" and suggested he was no longer certain he wanted a deal at all. Despite this rhetoric, US negotiators remain engaged with Iranian counterparts, with talks ongoing through multiple channels. The diplomatic process remains uncertain, with both sides seeking leverage.
According to reports, French and German officials have insisted that any future Iran agreement must address Tehran's ballistic missile program and its backing of regional proxy groups. The diplomatic path forward remains unclear as negotiations continue.
Italy Earns Goodwill, Spain Draws Fire
Trump's comments at the NATO summit drew a stark line between allies. Italy received explicit commendation for supporting US operations, while Spain was labeled a "terrible partner" for its reluctance to align with US Iran operations.
Madrid's position stems from a policy rooted in the memory of Spain's controversial participation in the 2003 Iraq War under a conservative government—a decision the subsequent socialist administration reversed by withdrawing troops. Spanish Prime Minister Pedro Sánchez has insisted that military action without UN Security Council authorization violates international law, and that Spain will not serve as a launchpad for wars it considers unjustified.
The Spanish government responded coolly to Trump's remarks, stating it maintains "magnificent social, cultural, and economic relations" with Washington and intends to keep it that way. Yet Trump has threatened to sever trade ties with Madrid, a move that could disrupt bilateral commerce and affect Spanish exporters.
What This Means for Residents
For Italians, Trump's endorsement offers potential benefits. US military installations in Italy—including the Naval Air Station Sigonella in Sicily and the Aviano Air Base in Friuli-Venezia Giulia—remain secure and represent significant economic contributions to their host regions through local employment and service contracts. Italy's alignment also positions Rome favorably in transatlantic discussions and may influence Italy's position regarding defense spending commitments.
Italy currently spends approximately 1.5% of GDP on defense, below the NATO target of 2%. The alliance is now pushing members toward 5% by 2035—a threshold that could substantially increase Italy's defense budget and procurement spending. Italy's current diplomatic favor with Washington may prove advantageous as these budgets are negotiated.
Conversely, Spain's stance carries economic risk. Madrid's refusal to participate in certain operations has already strained ties, and Trump's trade threats could impact Spanish-US commerce, which exceeds €40 billion annually.
Energy security also factors in. Iran tensions have periodically affected global oil supplies, and disruptions can drive prices higher across Europe. Italy's cooperative posture with Washington may influence how emergency energy measures are coordinated among NATO members, while countries perceived as non-aligned could face additional uncertainty.
NATO's Internal Struggle
The Ankara summit revealed the extent of transatlantic discord. Trump has pushed NATO members to commit 5% of GDP to defense spending by 2035, up from the previous 2% target agreed in 2014. In 2026, Europe and Canada boosted defense budgets, yet Trump insists the pace is insufficient.
NATO Secretary General Mark Rutte defended the progress, crediting Trump with driving what he called "Trump's trillion"—$1.2 trillion in additional defense spending since 2017.
Five countries—Lithuania, Estonia, Latvia, Poland, and Greece—are on track to meet or exceed 3.5% this year. But Spain, Slovenia, Belgium, and the Czech Republic lag behind, fueling Trump's frustration. Italy's current spending places it in the middle tier of NATO members, with pressure mounting to accelerate increases toward the 5% target.
Yet defense budgets alone do not resolve strategic divides. European NATO members were not fully consulted before certain US military actions, and several—including France, Germany, and Italy—had concerns about base access for operations. The UK provided limited support.
Turkish President Recep Tayyip Erdoğan, hosting the summit, urged EU members not to pursue defense initiatives that duplicate or weaken NATO structures, hinting at friction over Europe's push toward strategic autonomy—a concept that envisions reduced reliance on US military capabilities.
Diplomatic and Economic Ripple Effects
For Italian expatriates, investors, and businesses, the immediate takeaway is that Italy's diplomatic alignment has preserved access and goodwill with Washington. This matters in sectors ranging from defense contracting to technology partnerships, where US collaboration often hinges on political trust.
Spain's isolation, meanwhile, signals a broader European debate over sovereignty versus alliance cohesion. Madrid's principled stance against unilateral military action resonates with voters wary of entanglement in Middle Eastern conflicts, but it risks economic retaliation and diplomatic marginalization.
The broader Iran situation remains volatile and fluid. If diplomatic efforts yield results, the implications could include changes to sanctions regimes affecting European trade with Iran. If tensions escalate, higher energy prices and regional instability could affect European growth, with countries like Italy and Spain—which import significant energy resources—particularly vulnerable.
NATO's unity, often touted in public statements, is proving fragile. Trump's rhetoric—praising some allies while criticizing others—underscores a transactional approach to alliances that prioritizes burden-sharing and alignment over historical bonds. Italy's current favor may prove contingent on continued alignment with US priorities. Spain's defiance, rooted in domestic politics and legal principle, reflects a calculation that national sovereignty considerations outweigh short-term economic incentives.
Looking Ahead
Coming weeks will reveal whether diplomatic channels produce concrete results or whether US-Iran tensions remain elevated. European allies, including Italy, face the delicate task of maintaining transatlantic cohesion while managing their own security and economic interests. Spain's stance, despite Trump's criticism, sets a precedent for other members weighing the costs and benefits of independent positions.
For now, Italy's favorable standing with Trump offers certain advantages—but in a NATO increasingly defined by conditional relationships and diverging security priorities, positions can shift rapidly.
