Most regions in Italy were downgraded from status red to orange in early December, which saw some life returning to the streets. However, a stubbornly high Covid-19 death rate and a healthcare system in crisis forced the government to impose status red on the whole of Italy over the Christmas period.
Christmas is not exactly cancelled, but it is severely restricted. Two adults from one household were permitted to visit another house yesterday.
However, with bars and restaurants and non-essential shops closed over the period, the chance to see people and celebrate has been taken off the table until January 6 at least, and probably well beyond that.