Italian Prime Minister Meloni has introduced economic recovery since taking office
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When Italy’s Giorgio Meloni took over as prime minister in 2022, the country was not in good shape. But since then, the economy has bounced back in ways few outsiders would have expected. Now the country looks healthier than Germany or France, the two largest economies in the European Union.
In 2022, Italy’s deficit was 8.1% of GDP, according to Trading Economics. Unemployment in December 2022 was 7.9%, and inflation exceeded 12%.
“Italy has been living in a social and economic crisis caused by the increase in illegal immigration,” Daniel Lacalle, an economist at the Madrid-based investment firm Tressis, told FOX Business, “Typical democratic politicians ignored the problem because they didn’t bother. [but] the middle class in Italy supports Meloni because he has stopped this crisis which has caused significant levels of social and economic stress. “
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Italian Prime Minister Giorgio Meloni speaks to the media on June 8, 2023, in Rome, Italy. (Simona Granati – Corbis/Corbis via Getty Images / Getty Images)
Things changed rapidly after Meloni took office. “Confidence returned, and the economy responded,” Edmundo Cirielli, Italy’s deputy foreign minister, told FOX Business. “It has strong fiscal discipline, record employment, and a government, too, that is seen by global markets as trustworthy.”
It is not just the government that says they are successful. The data also shows it. The deficit fell to 3.1% last year, inflation fell to 1.1% in November, unemployment fell to 6% in October.
In many ways, the policies were similar to those established by US President Ronald Reagan in 1981. Reagan succeeded in transforming conservatism from an identity-based movement into a credible governing force. Meloni did the same. He did not abandon his roots; he made them compatible with governance and international negotiations, said Cirielli.
Meloni is also a close friend of President Trump.
US President-elect Donald Trump meets with Italian Prime Minister Giorgio Meloni at Mar-a-Lago in Palm Beach, Florida, US January 4, 2025. (Government of Italy/Handout via REUTERS/Reuters Images)
Not everyone is convinced that Italy’s policies will work. “I’m not as pessimistic as others,” Marc Chandler, market strategist at Bannockburn Global Forex, told FOX Business. The main problem is that the population of this country has been decreasing constantly, as it happens in many other European countries. “The lack of birth affects me with long-term growth.”
Deputy Foreign Minister Edmondo Cirielli, and Italian Prime Minister Giorgio Meloni, during a campaign meeting on November 14, 2025. (Marco Cantile/LightRocket via Getty Images/Getty Images)
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Cirelli says the government is working to solve the demographic challenge. “Italy faced its baby boom after World War II. That generation rebuilt the country, powered the economic miracle of the 1950s and 1960s, and maintained the social system for decades,” he said, adding, “Meloni starts with the same understanding: Without families and children, there is no growth and no sustainable welfare state. That is why families support and support families.”
Chandler is also concerned that part of Italy’s success was fueled by European Union subsidies and may not be sustainable. Basically, what happens if the EU stops sending money to Italy?
EU flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany on July 18, 2024. (Jana Rodenbusch/File Photo/Reuters)
Cirielli doesn’t care. “European funds have helped, but they are not the reason for success,” he said. “The Marshall Plan didn’t work just because of the money itself, but because there were governments that were able to use it effectively. That’s what’s happening in Italy today.” He thinks that with honest leadership, those funds can be turned into better infrastructure, new, and jobs. “Funds must be considered as investments,” he said.
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There are also whispers around the world that many countries will want to leave the EU, following Britain’s so-called Brexit at the start of the decade. However, Cirielli says no, Italy will not be better off without the EU.
“The United States never left NATO when something was not working – it chose to lead it and fix it from within. Meloni uses the same principle in the European Union. Leaving is not a serious option; fixing it is a reality.”
