Reliability without growth

The Meloni government deserves credit for something that was by no means a foregone conclusion. The Republic’s longest-serving government has kept public finances in order and, in an extremely complex international landscape, thanks to the Prime Minister’s drive, has managed to act pragmatically: engaging in dialogue with the United States whilst maintaining a firm anchorage in Europe. This is a track record of reliability that deserves recognition and which has yielded – and continues to yield – significant results. The assessment of its economic policy is less convincing. Little has been done regarding simplification, the modernisation of the public administration, or energy costs. The National Recovery and Resilience Plan (PNRR), subject to constant revisions, has gradually become a bureaucratic exercise, losing its ambition. Tax reform has been useful but has been limited to routine maintenance, whilst the tax burden has increased and businesses have footed the bill. The attempt to modernise the Consolidated Law on Finance (TUF) and revitalise the stock market is commendable, though it has not yet succeeded in reversing its decline. On the justice front, laudable reformist aims have been pursued with less convincing tools and key players. A government that has brought reliability to Italy, but has not yet charted a course to enable it to grow further.