Giorgia Meloni, Italy’s Prime Minister, has made significant strides since taking office in October 2022. Many were skeptical about her ability to lead, given Italy’s history of political instability, economic challenges, and a heavy national debt. However, her government, which includes her party Fratelli d’Italia, Lega, and Forza Italia, has begun to show promising results.
Over the past two years, Italy’s economy has demonstrated unexpected resilience. While the eurozone overall has struggled, Italy’s economy grew by 0.7 percent in both 2023 and 2024. Employment rates have also improved, with unemployment dropping to 6.2 percent. This progress is crucial, as Italy is the EU’s third-largest economy and plays a vital role in the eurozone’s stability.
One of Meloni’s key focuses has been energy policy. Learning from Germany’s industrial struggles, Italy has shifted its strategy to secure energy partnerships with African nations, reducing its reliance on Russian gas. Unlike Germany, which has moved away from nuclear power, Italy is reconsidering nuclear energy as part of its long-term energy strategy. The government is also investing in liquefied natural gas (LNG) infrastructure and exploring decentralized energy sources like solar power.
On the financial front, Meloni’s administration has introduced reforms aimed at liberalizing the labor market, encouraging innovation, and cutting bureaucratic red tape. Surprisingly, Italy was the only G7 country to report a primary budget surplus in 2024. The country’s deficit has decreased to 3.4 percent and is expected to drop below 3 percent by 2025. Meloni’s fiscal policies reflect a desire for greater autonomy from EU regulations, balancing Italy’s needs with the demands of Brussels.
Meloni’s government has also taken a firm stance on property rights. A new law imposes prison sentences for illegal occupation of properties, addressing the issue of squatting that has plagued Italy for years. This move contrasts sharply with the policies of other European nations that have been more lenient on property rights.
Additionally, Meloni has made significant changes to Italy’s migration policies. After a period of open-door immigration, illegal entries have decreased by 58 percent. The government has established agreements with Tunisia and Albania to process asylum claims outside Italy, while also legalizing hundreds of thousands of existing migrants to fill labor shortages.
As Meloni continues to implement her policies, her government faces both praise and scrutiny. While her success could be seen as a positive outcome for Italy, it also poses challenges for the EU. If Italy thrives under Meloni’s leadership, it may inspire other nations to seek similar paths away from EU centralism.
In summary, Giorgia Meloni is reshaping Italy’s political and economic landscape. Her focus on energy independence, fiscal discipline, property rights, and responsible migration policies marks a significant shift in Italy’s approach. As her administration progresses, the implications for both Italy and the broader EU remain to be seen.