A
s 2025 draws to a close, when Italians look across the border, they can finally say that the tables have turned. Once associated with political instability, Italy is now governed by a cohesive coalition led by far-right leader Giorgia Meloni. Three years after coming to power, as a strong prime minister increasingly drifting toward authoritarianism, she garners voting intentions hovering above 30%. Marked by illiberal tendencies, her government has become one of the most stable Italy has seen in years, while on the other side of the Alps, France is gripped by a series of political crises.
The same is true from a fiscal perspective. Since 1980, Italy has struggled with massive debt (135% of GDP in 2024) and a public deficit that has undermined market confidence. But the Meloni government reduced the deficit to 3.4% of GDP in 2024. Credit rating agencies raised Italy's rating despite its structural weaknesses, while Fitch and Standard & Poor's downgraded France's. Meanwhile, as Paris continues its withdrawal from Africa, Meloni embarked on an ambitious diplomatic push toward the continent. With promises of aid and the prevention of illegal migration, this plan is taking shape.
Subscribers only
