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Second Italian Journalist Targeted with Paragon Spyware, Citizen Lab Reports

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Citizen Lab, an internet watchdog group, has revealed that a second Italian journalist was targeted by Paragon spyware, escalating concerns over a surveillance scandal involving the Italian government and the U.S.-owned spyware company. The new report disclosed that Ciro Pellegrino, an investigative journalist at Fanpage, had his iPhone infected with Paragon’s sophisticated spyware.

Pellegrino joins Francesco Cancellato, Fanpage’s editor-in-chief, who earlier confirmed he was targeted by Paragon technology following WhatsApp alerts in January. Fanpage has been critical of Prime Minister Giorgia Meloni’s government, notably exposing links between the ruling party’s youth wing and neo-Nazi activities, which has intensified controversy after allegations of surveillance on its journalists surfaced.

The Italian government and Paragon recently announced an end to their collaboration but gave conflicting accounts over who initiated the split. Paragon stated it had offered Italian officials tools to verify if its spyware was used against Cancellato, but these offers were reportedly declined. Italian authorities have not commented on the Citizen Lab findings.

Pellegrino described the spyware discovery as “horrible,” emphasizing that his phone holds deeply personal and professional data, including journalistic sources. This revelation casts doubt on the thoroughness of a recent Italian parliamentary investigation, which confirmed Paragon’s spyware use by Italian intelligence against migrant rescue activists but found no evidence of targeting Fanpage journalists.

Human rights advocate Natalia Krapiva of Access Now called for a reevaluation of the investigation, stating the new findings seriously question its adequacy. Opposition Democratic Party spokesperson Sandro Ruotolo demanded the parliamentary panel reopen its probe, seeking answers on why two journalists were surveilled.

Citizen Lab also disclosed that an unnamed European journalist was targeted with Paragon spyware but provided no further details. The parliamentary panel has reserved the right for further investigations but has not commented on the recent report.

Italy Ends Spyware Contracts with Israeli Firm Paragon Amid Controversy

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Italy and Israeli spyware maker Paragon have terminated their contracts following allegations that the Italian government used Paragon’s technology to hack phones of government critics, according to a parliamentary report released Monday and statements from both parties.

The fallout stems from a report by Italy’s parliamentary security committee (COPASIR) and earlier revelations from Meta’s WhatsApp, which disclosed that Paragon spyware targeted multiple users including an investigative journalist and members of Mediterranea, a migrant rescue charity critical of Prime Minister Giorgia Meloni.

The government acknowledged that seven Italian phone users had been targeted but denied involvement in illicit surveillance and said it had tasked the National Cybersecurity Agency to investigate. COPASIR’s report states that Italian intelligence services initially suspended and later ended their contracts with Paragon after the media backlash, though the exact timing remains unclear.

Contradictory statements have fueled political criticism, with opposition parties demanding clarity. Paragon claims it ceased providing spyware after allegations against journalist Francesco Cancellato became public, but said the government declined joint investigation offers to verify whether Cancellato was spied on. The committee found no evidence Cancellato was surveilled with Paragon’s tools.

COPASIR also detailed that Italy’s domestic and foreign intelligence agencies used the spyware sparingly, with prosecutor approval, for law enforcement purposes including counter-terrorism, fugitive searches, and anti-smuggling. It stated that spying on Mediterranea activists related to their activities potentially connected to irregular immigration, with authorization from the government.

Undersecretary Alfredo Mantovano, responsible for intelligence oversight, authorized the spyware use on Mediterranea activists Luca Casarini and Beppe Caccia in September 2024. Meanwhile, six Mediterranea members, including Casarini and Caccia, face trial accused of aiding illegal immigration, charges they deny.

The scandal has drawn calls for parliamentary inquiry and public scrutiny over surveillance ethics and government transparency.

Only 8% of Italian Firms Use AI as Digital Skills Lag Behind EU Peers, Says ISTAT

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Italy remains significantly behind its European peers in the adoption of artificial intelligence (AI) and digital skills, according to the annual report released Wednesday by ISTAT, the country’s national statistics bureau.

Only 8% of Italian enterprises were using AI in 2023 — a far lower share than in other major EU economies. By comparison, nearly 20% of German businesses use AI tools, with higher adoption rates also recorded in France and Spain.

ISTAT’s findings point to a broader challenge for Italy: insufficient digital literacy among its population. In 2023, only 45.8% of Italians aged 16 to 74 possessed at least basic digital skills — well below the EU average of 55.5% and far from the bloc’s 2030 target of 80%. The figure drops even further to 36.1% in the Mezzogiorno, Italy’s economically disadvantaged southern regions, including Sicily and Sardinia.

Brain Drain and Economic Concerns

ISTAT also highlighted the ongoing “brain drain” affecting Italy’s younger population. In 2023 alone, 21,000 graduates aged 25–34 left the country, marking a 21.2% increase compared to the previous year. Over the past decade, Italy has experienced a net loss of 97,000 qualified young workers, exacerbating demographic and labor challenges.

This trend poses long-term risks to Italy’s innovation capacity and productivity, particularly as the country struggles with low growth and aging demographics.

Economic Forecast

Amid mounting external pressures, including U.S. trade tariffs, the government of Prime Minister Giorgia Meloni last month slashed its 2025 growth forecast from 1.2% to 0.6%. Preliminary data showed the Italian economy grew by 0.3% in the first quarter of 2025 compared to the previous quarter.

Outlook

Italy’s sluggish digital transformation threatens its competitiveness in a rapidly evolving EU market that is increasingly driven by AI integration, digital skills, and tech innovation. The report underscores an urgent need for targeted policies to:

  • Boost digital education,

  • Incentivize AI adoption among small and medium-sized enterprises,

  • Retain young talent by fostering innovation-friendly environments.

Without such reforms, Italy risks falling further behind in the digital economy of the future.