Meloni Faces Major Challenges: Italy is in Jeopardy, Far Beyond Sangiuliano’s Concerns

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Giorgia Meloni and the Political Drama Surrounding Gennaro Sangiuliano

Giorgia Meloni has inadvertently become a central figure in the unfolding drama involving Gennaro Sangiuliano, the Minister of Culture.
Following his emotional admission of an affair with the enigmatic Maria Rosaria Boccia, Sangiuliano publicly apologized in tears to his wife and the Prime Minister, who reportedly declined his offer to resign from his post.

As public discourse rages over whether Sangiuliano should step down, the media is flooded with the social media posts from Dr.
Boccia, diverting attention from the recent release of minutes from the European Central Bank’s (ECB) latest meeting, which went almost unnoticed in Italy.

It is high time Italy awakens from this political stupor that increasingly resembles a reality show, recognizing its dire economic landscape.
Meloni is acutely aware that she will eventually have to confront the harsh realities ahead.

Economic Focus: The 2025 Budget Law

Currently, all eyes are on the 2025 Budget Law.
The ECB has reminded various governments that economic maneuvers will be closely monitored by the Markets, hinting that “fiscal consolidation may fall short of previous expectations.”

This issue doesn’t seem to cause much concern within the government, as the upcoming legisltation appears to be nearly finalized.
With an expected 25 billion euros from increased tax revenues, the funds are set to extend all expiring measures for another year, rather than implementing genuine reform.

Broader Challenges: Infraction Procedures and the Pnrr

However, the government must grapple with significant issues: the infraction procedure and the National Recovery and Resilience Plan (Pnrr), both looming over the heads of Italians like a Damocles sword.

Before her electoral victory in 2022, Meloni boasted, “Is Europe concerned? The joyride is over.” It remains to be seen if she would reiterate such a bold claim today, especially given that Italy, like several other EU nations, is under procedure for excessive deficit.
This will require Italy to reduce its debt by 12 billion euros yearly for the next seven years.

The European Union will dictate the “reference trajectories” for states under scrutiny, effectively putting Italy under tight supervision.
This comes while Meloni and the Ministry of Economy and Finance face the daunting task of sourcing these funds, which will likely necessitate severe cuts to public spending.

The Pnrr Challenge

A second major headache for Meloni is the Pnrr.
Reports suggest that Raffaele Fitto may soon be appointed as the “Executive Vice President of the Commission” responsible for the economy and COVID recovery efforts.

The ECB has underscored the urgency of implementing the Pnrr effectively to shield Italy against uncertainties, as failure in this domain could have severe repercussions not just for the nation, but for the credibility of the EU itself.

With Italy being the largest beneficiary of EU funds, any missteps on the Pnrr could jeopardize investor confidence and exacerbate the country’s already fragile economic situation.
The execution of various funded projects remains a mystery, as the government faces scrutiny from Brussels.

Conclusion

Debates surrounding the Budget Law, Pnrr, and the infraction procedure should dominate the political agenda.
Yet, discussions about the 84 billion euros in cuts required over the upcoming seven years and the risk of mismanagement of 194 billion euros from the Recovery Fund seem to be eluding public discourse.

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