AssessmentsNov 6, 2025 | 19:38 GMT

Italy Struggles To Translate Political Stability Into Economic Growth
Italy's political and fiscal stability has markedly improved under Prime Minister Giorgia Meloni, and while upcoming institutional reforms could help her further consolidate power ahead of the 2027 elections, weak growth and the expiry of EU recovery funds may compel her to abandon recent fiscal prudence, potentially once again testing investor confidence in the country's fiscal trajectory. On Oct. 30, Italy's Senate gave final approval to Meloni's flagship justice reform, which establishes separate career paths for judges and prosecutors and bans magistrates from switching between these roles. The proposed constitutional amendment also restructures the High Council of the Judiciary (CSM) -- the top self-governing body of the Italian judiciary -- into two distinct branches and expands the President of the Republic's authority over appointments, promotions and disciplinary action. The reform will now proceed to a confirmatory referendum, expected in March or April, where Italian voters will decide whether the constitutional
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