Thank for the info Pumuckl.
Italy don't require residence it Italy for spouses to be given citizenship. You can apply after 6 months of marriage if living in Italy or after 3 years if living abroad. We've been married for 5 years but have only applied now as my wife's citizenship has just been completed. Unfortunately I've been told it will likely take 4 years to process my application. In the mean time I need to mess around with permits and try to find employers that will accept a EEA family permit until I can apply for a residency permit.