In 2022, Italy\u2019s deficit was 8.1% of GDP, according to Trading Economics. Unemployment in December 2022 was 7.9%, and inflation exceeded 12%.<\/p>\n
“Italy was living through\u00a0a social and\u00a0economic crisis created by the rise of illegal immigration,” Daniel Lacalle, chief economist at Madrid-based investment company Tressis, told FOX Business,\u00a0“Mainstream social democrat\u00a0politicians largely ignored this problem because they did not suffer it, [but] the middle class in Italy is supporting Meloni because she has stopped this problem that caused significant levels of social and economic distress.”<\/p>\n
TRUMP ADMINISTRATION SCALES BACK PROPOSED TARIFFS ON ITALIAN PASTA MAKERS FOLLOWING REVIEW<\/a><\/p>\n Italian Prime Minister, Giorgia Meloni talking to the press on June 8, 2023, in Rome, Italy.\u00a0 (Simona Granati – Corbis\/Corbis via Getty Images \/ Getty Images)<\/p>\n Things changed at breakneck speed after Meloni took office. “Confidence returned, and the economy responded,” Edmondo Cirielli, Italy\u2019s deputy minister of foreign affairs, told FOX Business. “It has stronger fiscal discipline, record-high employment, and a government, once again, seen as reliable by international markets.”<\/p>\n It\u2019s not just the government saying they\u2019d succeeded. The data shows it too. The deficit fell to an estimated 3.1% last year, inflation dropped to 1.1% in November, and unemployment retreated to 6% in October.<\/p>\n In many ways, the policies were similar to those instituted by U.S. President Ronald Reagan<\/a> in 1981. Reagan succeeded in transforming conservatism from an identity-based movement into a credible governing force. Meloni has done the same. She did not abandon her roots; she made them compatible with the responsibility of governing and with international dialogue, Cirielli said.<\/p>\n Meloni is also a close ally of President Trump.\u00a0<\/p>\n U.S. President-elect Donald Trump meets with Italian Prime Minister Giorgia Meloni at Mar-a-Lago in Palm Beach, Florida, U.S. January 4, 2025. (Italian Government\/Handout via REUTERS\u00a0 \/ Reuters Photos)<\/p>\n Not everyone is convinced that Italy\u2019s policies will work. “I am not as optimistic as some others are,” Marc Chandler, chief market strategist at Bannockburn Global Forex, told FOX Business. A significant issue is that the country\u2019s population has been steadily falling, as have those of many other European countries. “The dearth of births influences me about long-term growth.”<\/p>\n Deputy Foreign Minister Edmondo Cirielli, with the Italian Prime Minister Giorgia Meloni, during an election campaign rally on Nov. 14, 2025. (Marco Cantile\/LightRocket via Getty Images \/ Getty Images)<\/p>\n GERMAN CHANCELLOR HOPES US WILL BRING DOWN TARIFFS, SAYS ‘BEST THING FOR MUTUAL WEALTH’ IS OPEN MARKETS<\/a><\/p>\n Cirielli says the government is working to solve the demographic challenge. “Italy experienced its own baby boom after World War II. That generation rebuilt the country, powered the economic miracle of the 1950s and 1960s, and sustained the welfare system for decades,” he said, adding, “Meloni starts from the same understanding: Without families and children, there is no growth and no sustainable welfare state. That is why the government focuses on birth rates, employment and support for families.”<\/p>\n Chandler also worries that part of Italy\u2019s success was fueled by European Union funding and may not be sustainable. In essence, what happens if the EU stops sending money to Italy?<\/p>\n EU flags flutter in front of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. (Jana Rodenbusch\/File Photo \/ Reuters)<\/p>\n Cirielli isn\u2019t concerned. “European funds helped, but they are not the reason behind the success,” he says. “The Marshall Plan worked not simply because of the money itself, but because there were governments capable of using it effectively. That is what is happening in Italy today.” He thinks that with credible leadership<\/a>, those funds can be turned into better infrastructure, innovation, and jobs. “Funds must be treated as investments,” he said.<\/p>\n![\"Giorgia](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/01\/Untitled-1.jpg\")
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