I'm sure they do, but you don't make national policy on the basis of emotion and fear. You do it on the basis of reason. And reason says that if you pay ransom, you incentivize kidnapping.
I don't care if their families think the kidnappers should be paid or slaughtered. It's what's in the best interests of the country that counts, especially if you're considering paying a ransom with tax dollars.
It appears that Italians think differently...
Exactly, because I guarantee you there are a lot more potential hostages out there, then there is ransom money to free them.