Italian Prime Minister Giorgia Meloni marked a significant political milestone as her coalition government became Italy’s longest-serving cabinet since World War II, celebrating this achievement in Bari on September 4, 2026. This period of political stability has improved Italy’s standing with international investors, reflected in falling bond yields and a sharply reduced government deficit from a peak of 7.4% in 2023 to 3.1% in 2025. Meloni highlighted achievements in employment growth, enhanced public security, and restored Italy’s credibility on the global stage during her time in office since October 2022.

Despite these positive developments, former Italian leaders caution that the country faces persistent economic challenges that require urgent reform. Paolo Gentiloni, prime minister from 2016 to 2018, noted Italy’s sluggish economic growth of 0.5% in 2025, well below the euro area average, and pointed to high youth unemployment of 18.9% as a critical failure. Gentiloni emphasized that declining family spending power and underperforming economic momentum mean political stability alone is insufficient without accompanying structural reforms to revive growth.

Former prime minister Mario Monti praised Meloni’s pragmatic governance style, observing that she avoided contentious reforms that might jeopardize her political support. Monti argued that Italy urgently needs measures such as stronger application of competition laws and efforts to reduce tax evasion to stimulate economic dynamism. He warned that while Meloni’s government has softened extreme political positions, this cautious approach risks stagnation, prompting disillusioned young Italians to consider leaving the country.

Economists and analysts agree that Meloni’s tenure has restored confidence in Italy’s fiscal management, as demonstrated by tighter bond spreads and rating upgrades. However, Italy still struggles with a high debt-to-GDP ratio above 137%, projected to rise modestly in 2026. While investor sentiment has improved amid global bond market turbulence, experts remain cautious about Italian debt’s long-term appeal. The consensus is that further economic restructuring and enhanced cooperation within the European Union will be crucial to sustaining Italy’s recovery and attracting future investment.