No scripting in Encore, so that is not an option here.
One option; put both English and Italian in the button names and use one menu. But I like your concept.
I have not tried this, but I think you can do what you want two ways: 1) playlists or 2) overrides.
For both methods, I assume your audio/subtitle options are selected in the intial (or later) menu, and that the selection made there remains until it is changed (which will also change the menu that is presented next).
For method 1, just put your video in a single timeline playlist. The English menu links to the timeline itself, which has end action for the English menu. The Italian menu links to a playlist of the timeline, and the end action of the playlist is the Italian menu.
For method 2, the end action of the timeline is again English, and the English menu still links to the timeline itself. The Italian menu buttons have an override set to come back to the Italian menu.