Portrait of Giorgia Meloni
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Giorgia Meloni on Economic Growth Policy

Fiscal Prudence Focus (strong)

Giorgia Meloni's economic policy as Prime Minister has been characterized by a commitment to fiscal prudence and restoring international market confidence in Italy.

Her government has successfully lowered the public budget deficit to meet European Union targets and secured credit rating upgrades, signaling to international markets that Italy is a reliable actor.

Conversely, critics and economists point out that the economy is still struggling with structural weaknesses, including low productivity and real wages that have declined over decades, suggesting that growth-enhancing reforms have been slower to materialize.

Context

Giorgia Meloni became Prime Minister in 2022 at a time when Italy faced a significant economic crisis, including high inflation and a large deficit.

Her political mandate for economic growth is tied to her ability to deliver on stability and reform, as failing to meet economic expectations could impact her political longevity beyond the end of the legislature in 2027.

Actions Taken

  1. Fiscal Consolidation
    Lowered the budget deficit to an estimated 3.1% in the year following taking office, down significantly from 8.1% in 2022.
  2. Demographic Policy
    Increased focus on family support and birth rates as a fundamental element for future growth and a sustainable welfare state, mirroring a post-WWII understanding.
  3. Budgeting
    Drafted a restrained 2026 budget centered on modest tax cuts, family benefits, and selective wage measures, while cutting funds for education, research, and culture.

Related Positions

  • Immigration Policy Meloni explicitly links reduced illegal immigration and managing migration flows to economic health and sustainability, advocating for co-operation with African nations like Tunisia and through the Mattei Plan.
  • Family Policy The government focuses on birth rates and support for families, viewing them as essential for future economic growth and a sustainable welfare state.
  • Energy Policy Actions to reduce dependence on Russian gas through diversification and strengthening infrastructure are key components of her economic stability strategy.

Criticism

Economists/Analysts

Structural problems like low productivity and falling real wages persist, with most new jobs being poorly paid or precarious in sectors like tourism and construction.

European Central Bank (ECB)

Warned against reliance on one-off fiscal measures which could erode investor confidence and strain bank liquidity, suggesting a clash between Rome's growth priorities and systemic stability.

Romano Prodi

Stated that Meloni's discipline guarantees government endurance but comes at the cost of innovation in a country long paralyzed by structural issues.

Comparison

In economic management, Meloni's government has displayed an unexpectedly zealous commitment to fiscal discipline, contrasting with past coalition stances against austerity.

Her approach is contrasted with that of Spain, which has been more targeted in using EU recovery funds to incentivize businesses, while Italy's implementation has been hampered by bureaucracy.

Meloni's economic record is described as mixed, marked by stability but little deep structural renewal, which some suggest is the 'price' for imposing discipline.

Sources7

* This is not an exhaustive list of sources.