Does Italy acting like an idiot affect startups in the rest of the EU?
First off, the UK & Germany, then France, Spain, Scandinavia, Benelux, then Italy, and Greece. Switzerland usually gets pulled in alongside Germany and France with the portion of the country that only speaks Italian to come along when Italy goes in, Austria usually around the time that Germany is done. That's simply a consequence of the amount of business done online and the size of the populations of those countries.
Former eastblock countries usually follow last, but there is a shift happening there, they definitely figure higher in the consciousness of start-ups today than they did even 3 years ago.