Italy’s Prime Minister Meloni Champions Economic Recovery Since Taking Office
Circle Squared Alternative Investments’ Jeff Sica discusses the ‘historic’ meeting between Trump and PM Giorgia Meloni at Mar-a-Lago and Apple’s stock performance.
When Giorgia Meloni assumed the role of Prime Minister of Italy in 2022, the nation was grappling with significant challenges. However, since her inauguration, the Italian economy has shown remarkable resilience, surprising many observers. Today, Italy’s economic health surpasses that of both Germany and France, the two largest economies in the European Union.
In 2022, Italy’s deficit stood at 8.1% of GDP, with unemployment reaching 7.9% in December and inflation soaring above 12%. Daniel Lacalle, chief economist at Madrid-based investment firm Tressis, remarked, “Italy was living through a social and economic crisis created by the rise of illegal immigration. Mainstream social democrat politicians largely ignored this problem because they did not suffer it. However, the middle class in Italy is supporting Meloni because she has addressed this issue, which caused significant social and economic distress.”
TRUMP ADMINISTRATION SCALES BACK PROPOSED TARIFFS ON ITALIAN PASTA MAKERS FOLLOWING REVIEW
Italian Prime Minister, Giorgia Meloni talking to the press on June 8, 2023, in Rome, Italy. (Simona Granati – Corbis/Corbis via Getty Images / Getty Images)
After Meloni took office, changes occurred rapidly. “Confidence returned, and the economy responded,” stated Edmondo Cirielli, Italy’s deputy minister of foreign affairs. “It has stronger fiscal discipline, record-high employment, and a government once again seen as reliable by international markets.”
The data corroborates this narrative of recovery. The deficit has decreased to an estimated 3.1%, inflation fell to 1.1% in November, and unemployment dropped to 6% in October. Meloni’s policies echo those of U.S. President Ronald Reagan in 1981, transforming conservatism into a credible governing force. Cirielli noted, “Meloni has not abandoned her roots; she has made them compatible with the responsibility of governing and international dialogue.”
Meloni’s close alliance with President Trump adds another layer to her political strategy.
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 / Reuters Photos)
Despite the positive outlook, skepticism remains. Marc Chandler, chief market strategist at Bannockburn Global Forex, expressed caution, stating, “I am not as optimistic as some others are.” He pointed out that Italy’s declining population poses a long-term growth challenge. “The dearth of births influences me about long-term growth.”
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)
Cirielli emphasizes that the government is actively addressing the demographic challenges. “Italy experienced its own baby boom after World War II. That generation rebuilt the country and powered the economic miracle of the 1950s and 1960s,” he explained. “Meloni understands that without families and children, there is no growth and no sustainable welfare state. This is why the government focuses on birth rates, employment, and support for families.”
Chandler also raised concerns that Italy’s recent success might be partially reliant on European Union funding, questioning its sustainability. “What happens if the EU stops sending money to Italy?” he asked.
EU flags flutter in front of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. (Jana Rodenbusch/File Photo / Reuters)
Cirielli, however, remains optimistic. “European funds helped, but they are not the sole reason behind our success,” he asserts. “The Marshall Plan worked not just because of the money, but because there were governments capable of utilizing it effectively. That is what is happening in Italy today.” He believes that with credible leadership, these funds can be transformed into better infrastructure, innovation, and job creation. “Funds must be treated as investments,” he stated.
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There are also murmurs globally about the potential for more countries to exit the EU, following Britain’s Brexit. However, Cirielli asserts that Italy will not benefit from leaving the EU. “The United States never left NATO when something wasn’t working; it chose to lead and reform it from within. Meloni applies the same principle to the European Union. Leaving is not a serious option; reforming it is.”
Circle Squared Alternative Investments’ Jeff Sica discusses the ‘historic’ meeting between Trump and PM Giorgia Meloni at Mar-a-Lago and Apple’s stock performance.
When Giorgia Meloni assumed the role of Prime Minister of Italy in 2022, the nation was grappling with significant challenges. However, since her inauguration, the Italian economy has shown remarkable resilience, surprising many observers. Today, Italy’s economic health surpasses that of both Germany and France, the two largest economies in the European Union.
In 2022, Italy’s deficit stood at 8.1% of GDP, with unemployment reaching 7.9% in December and inflation soaring above 12%. Daniel Lacalle, chief economist at Madrid-based investment firm Tressis, remarked, “Italy was living through a social and economic crisis created by the rise of illegal immigration. Mainstream social democrat politicians largely ignored this problem because they did not suffer it. However, the middle class in Italy is supporting Meloni because she has addressed this issue, which caused significant social and economic distress.”
TRUMP ADMINISTRATION SCALES BACK PROPOSED TARIFFS ON ITALIAN PASTA MAKERS FOLLOWING REVIEW
Italian Prime Minister, Giorgia Meloni talking to the press on June 8, 2023, in Rome, Italy. (Simona Granati – Corbis/Corbis via Getty Images / Getty Images)
After Meloni took office, changes occurred rapidly. “Confidence returned, and the economy responded,” stated Edmondo Cirielli, Italy’s deputy minister of foreign affairs. “It has stronger fiscal discipline, record-high employment, and a government once again seen as reliable by international markets.”
The data corroborates this narrative of recovery. The deficit has decreased to an estimated 3.1%, inflation fell to 1.1% in November, and unemployment dropped to 6% in October. Meloni’s policies echo those of U.S. President Ronald Reagan in 1981, transforming conservatism into a credible governing force. Cirielli noted, “Meloni has not abandoned her roots; she has made them compatible with the responsibility of governing and international dialogue.”
Meloni’s close alliance with President Trump adds another layer to her political strategy.
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 / Reuters Photos)
Despite the positive outlook, skepticism remains. Marc Chandler, chief market strategist at Bannockburn Global Forex, expressed caution, stating, “I am not as optimistic as some others are.” He pointed out that Italy’s declining population poses a long-term growth challenge. “The dearth of births influences me about long-term growth.”
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)
Cirielli emphasizes that the government is actively addressing the demographic challenges. “Italy experienced its own baby boom after World War II. That generation rebuilt the country and powered the economic miracle of the 1950s and 1960s,” he explained. “Meloni understands that without families and children, there is no growth and no sustainable welfare state. This is why the government focuses on birth rates, employment, and support for families.”
Chandler also raised concerns that Italy’s recent success might be partially reliant on European Union funding, questioning its sustainability. “What happens if the EU stops sending money to Italy?” he asked.
EU flags flutter in front of European Central Bank (ECB) headquarters in Frankfurt, Germany July 18, 2024. (Jana Rodenbusch/File Photo / Reuters)
Cirielli, however, remains optimistic. “European funds helped, but they are not the sole reason behind our success,” he asserts. “The Marshall Plan worked not just because of the money, but because there were governments capable of utilizing it effectively. That is what is happening in Italy today.” He believes that with credible leadership, these funds can be transformed into better infrastructure, innovation, and job creation. “Funds must be treated as investments,” he stated.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
There are also murmurs globally about the potential for more countries to exit the EU, following Britain’s Brexit. However, Cirielli asserts that Italy will not benefit from leaving the EU. “The United States never left NATO when something wasn’t working; it chose to lead and reform it from within. Meloni applies the same principle to the European Union. Leaving is not a serious option; reforming it is.”
