Meloni’s Italy: Rising Confidence, Financial Upgrades, and Strategic US Alignment

Under the leadership of Prime Minister Giorgia Meloni, Italy is pursuing a distinct economic and diplomatic path that is setting it apart from other EU nations. Her pragmatic governance has led to rising consumer and business confidence, a favorable credit outlook, and a tightening alliance with the United States.

Economic Confidence Surges

Italy’s consumer confidence index climbed from 92.7 to 96.5 in May 2025, while the economic climate index rose from 89.6 to 97.5, according to Italy’s National Institute of Statistics (Istat). Business confidence also grew modestly, and manufacturing sentiment improved, with more optimistic views on order books and production prospects.

Moody’s Outlook Turns Positive

On May 23, credit rating agency Moody’s upgraded Italy’s outlook to “positive,” citing solid fiscal performance and political stability. While the “Baa3” rating—just above junk status—remains unchanged, the revised outlook reflects improved debt dynamics and greater confidence in Italy’s economic resilience.

Finance Minister Giancarlo Giorgetti welcomed the move, calling it the result of “serious, quiet work” that will benefit families, businesses, and banks. Italian bond yields also reflected the stability, with the 10-year yield falling to 3.6%, and the spread with German Bunds narrowing to just over 100 basis points.

Strengthening Ties with Trump’s America

Meloni has positioned herself as a key European partner to US President Donald Trump. From her April 18 meeting in Washington to her earlier visit to Mar-a-Lago, she has publicly supported Trump’s cultural and foreign policy stance. “Our goal is to make the West great again,” Meloni told Trump during their White House meeting.

Her alignment contrasts with other EU leaders like Germany’s Friedrich Merz, who remain skeptical of Trump’s NATO policies and global approach. Meloni, meanwhile, has shown openness to Trump's proposals for ending the Ukraine conflict, including his suggestion for Vatican-hosted peace talks.

A Geopolitical Bridge

Meloni has cast Italy as a diplomatic bridge between Europe and the US. “Italy will always be committed to strengthening US-Europe dialogue,” she said in January. Amid growing tensions over trade and NATO contributions, her role as a mediator could prove pivotal.

Italy also recently received its first US LNG shipment, highlighting growing economic ties.

Pragmatic Politics Over Ideology

Despite past associations with far-right politics, Meloni has taken a more centrist and practical approach in office. Unlike leaders like France’s Marine Le Pen, she has worked to embed Italy within the EU mainstream. Even political rivals like Matteo Renzi have dismissed concerns about her party’s ideological leanings.

Analysts and diplomats describe Meloni as a flexible and results-oriented leader who listens to opposing views and adjusts her course when needed. As Professor Gianfranco Pasquino notes, “She is willing to listen and adapt, rather than cling to rigid dogma.”

With rising confidence at home and a growing strategic presence abroad, Meloni’s Italy is emerging as a key player in shaping both European unity and transatlantic cooperation.

Source: benzinga.com