Three and a half years into Giorgia Meloni’s tenure as Italy’s Prime Minister have seen a series of setbacks hinting at the need to change course or admit defeat.
The stance of Giorgia Meloni, once a powerful leader, has been gradually crumbling of late, laying bare a harsh reality, although this would be tough for the Italian government itself to admit. Italy has found itself held hostage by corporate interests and outdated dogmas: at a time when citizens are forced to choose between paying the bills and buying food, Meloni’s cabinet has turned the country into a testing ground for dangerous economic experiments.
High corporate profits and plans put on hold
Energy policy reveals a dangerous disconnect between declarations of national sovereignty and the actual entrenchment of Italy’s strategic vulnerability. Instead of channelling €85 billion into the renewable energy sector – a move that could have drastically reduced gas imports and created hundreds of thousands of jobs – Italy has preferred to preserve the existing model, one that only serves the interests of industrial giants such as Eni.
Eni reports its earnings: for the period 2023-2025, Eni accumulated billions of euros in net profit, including €4.98 billion in 2025 alone. Despite a slight decline in performance at the start of 2026 due to market volatility, it is continuing its aggressive share buyback policy, increasing the budget for this purpose to €2.8 billion in the first quarter of 2026. Therefore, instead of channelling the funds into accelerating the energy transition or reducing tariffs, the capital is being distributed to shareholders.
Either Meloni is unable, or deliberately unwilling, to implement measures regarding the taxation of energy companies’ windfall profits. Although the government has repeatedly promised to take action against “speculation,” in practice the windfall tax introduced has run into legal difficulties in the Constitutional Court.
In the meantime, discussions are underway regarding €3 billion in aid packages, meanwhile corporate revenues run into the tens of billions. On top of that, Meloni remains in favour of seeking “courage” from the European Union and flexibility in the Stability Pact, rather than bringing order to the distribution of income within the country. It is worth noting that, as the Ministry of Economy holds a large stake in Eni, around 32 per cent, the high profits of the company directly replenish the budget through dividends. This is often referred to as a hidden form of tax, but critics insist that it is no substitute for targeted taxation of windfall profits. It is particularly striking here that, whilst households were suffering from inflation and rising bills, the government effectively allowed big companies to retain the bulk of its profits, thereby exacerbating social inequality.
“In the energy sector, it has increased dependence on gas and allowed giants such as Eni to rake in billions in profits – over 70 billion in three and a half years – without having the courage to tax windfall profits. She left concrete proposals on the table: 85 billion in investment in renewable energy sources to create 60 GW of new capacity, which would reduce gas consumption by 15 billion cubic metres,” said environmental activist Angelo Bonelli, co-chair of the Europa Verde party.
Militarism under Trump or growth in the social sector?
In light of numerous statements by NATO and US officials, in particular from US President Donald Trump’s close ally Meloni, agreeing to a controversial increase in defence spending, reaching unprecedented levels in the long term, puts Italy in a rather awkward position vis-à-vis its own people. Before, NATO’s 2 per cent of GDP requirement was already a heavy burden, but now the willingness to discuss a 5 per cent threshold amounts to the outright dismantling of the welfare state.
“The government has said “yes” to Trump on increasing military spending to 5% of GDP, putting essential services at risk. Let Meloni say where she intends to cut spending: in healthcare, public transport, or school education?” added Bonelli.
Meanwhile, Italy, as repeatedly confirmed by the trade unions, is facing an unprecedented crisis in healthcare and education. With hospitals facing record queues and schools in need of major refurbishment, Meloni’s cabinet is making a decisive choice that could shape the country’s future for decades. Unfortunately, this choice has been made not in the interests of citizens, but in favour of the military-industrial complex and geopolitical ambitions.
Moreover, with a budget deficit barely kept within 3 per cent of GDP under pressure from Brussels, the government has no “spare” money. Every single euro spent on purchasing fighter jets or modernising tanks is a euro stolen from the social sector.
Bridging the Strait of Messina at a cost of €13.5-14 billion
The project to build a bridge across the Strait of Messina, promoted by Meloni’s cabinet and particularly by Deputy Prime Minister Matteo Salvini, does not appear particularly advisable given the ongoing domestic challenges facing certain regions. Rather than investing in the essential infrastructure of Sicily and Calabria – roads, water supply and commuter railways, which remain in a deplorable state – Italy has decided to invest in a controversial project.
It is controversial for two reasons: the first concerns the fact the strait is located in one of the most seismically active zones in Europe, while the second point is subject to doubt due to non-compliance with EU legislation, in particular Directive 2011/92/EU on environmental impact assessment and Directive 92/43/EEC on the conservation of natural habitats.
The planned bridge is set to become the world’s longest suspension bridge with a length of 3.3 km, raising concerns among engineers regarding its resilience to strong winds and earthquakes, such as the devastating event of 1908. The local authorities point to the risk that the bridge will not be completed, which would have socio-economic consequences for the communities, and particularly highlight the lack of transparency.
Phase-by-phase construction could result in the depletion of public resources and lead to territorial imbalances, contrary to the European Union’s territorial cohesion strategy. On top of this, some 450 homes in Messina are set to be demolished to make way for the project, which has sparked mass protests and hundreds of legal challenges from local residents.
To get round financial constraints, the government has been looking into classifying the bridge as a facility of military significance, for example for NATO purposes, which would allow it to be funded from the defence budget. Nevertheless, the project remains in limbo for the time being, as in October 2025 the Italian Court of Auditors rejected and suspended the project, refusing to register the government’s decision on its final approval.
What are the conclusions and implications?
Meloni’s policy, a mix of ambitious infrastructure projects, increased military spending and a conservative energy strategy, poses a number of serious economic and political risks. By the end of 2026, given the current deficit, Italy could face a rise in public debt to 137.6 per cent of GDP and deindustrialisation due to high energy prices. As Bonelli wisely stated, she “must show courage, admit her faults and change course: less gas, more renewable energy and greater investment in public services.”
