The history of Europe is long and storied. That continent is the wellspring of Western civilization, and the people that sprang from Europe are largely responsible for the shape of the world today. In the course of that history, the nations of Europe have had some great leaders, from Arthur to Charlemagne to Charles Martel to Winston Churchill. They've had some bad leaders, too; Franz Joseph I, Neville Chamberlain, Vidkun Quisling, among others.
Today, Europe's leadership is decidedly on the less-than-effective side. Germany is still suffering the after-effects of the disastrous administration of Angela Merkel, and the current Chancellor Friedrich Merz leaves something to be desired - and the less said about the UK's Prime Minister Keir Starmer, the better.
But there's one European leader who stands out: Italy's Giorgia Meloni. She has, in a matter of months, turned Italy around, and what she has done in domestic and foreign affairs is nothing short of remarkable. A recent piece on Fox Business gives us a pretty good snapshot of what she has done for Italy's economy, which was a train wreck when she took office.
When Italy’s Giorgia Meloni took the job of prime minister in 2022, the country wasn’t in good shape. But since then, the economy has bounced back in ways that few outsiders would have expected. Now the country looks healthier than either Germany or France, the two largest economies in the European Union.
In 2022, Italy’s deficit was 8.1% of GDP, according to Trading Economics. Unemployment in December 2022 was 7.9%, and inflation exceeded 12%.
"Italy was living through a social and economic crisis created by the rise of illegal immigration," Daniel Lacalle, chief economist at Madrid-based investment company Tressis, told FOX Business, "Mainstream social democrat politicians largely ignored this problem because they did not suffer it, [but] the middle class in Italy is supporting Meloni because she has stopped this problem that caused significant levels of social and economic distress."
That's not a bad record to point at; not be a damn sight. Italy's budget deficit has, as of this writing, dropped from 8.1 percent of GDP to 3.1 percent. Unemployment was at 7.9 percent; now it's at 6 percent. Inflation has dropped from 12 percent to a tad over one percent.
How was this done? By implementing some conservative fiscal and monetary policies that would have made President Ronald Reagan grin in approval.
In many ways, the policies were similar to those instituted by U.S. President Ronald Reagan in 1981. Reagan succeeded in transforming conservatism from an identity-based movement into a credible governing force. Meloni has done the same. She did not abandon her roots; she made them compatible with the responsibility of governing and with international dialogue, (Marc Chandler, chief market strategist at Bannockburn Global Forex) said.
Those policies? Fiscal and budget discipline. 22 billion euros in tax cuts. Simplifying and streamlining Italy's tax code. Reducing business taxes on small businesses and the self-employed; this one is key, because small businesses are primary job-growth drivers in every economy. She has also reduced Italy's dependence on Russian natural gas, although energy prices in Italy are still high, especially by American standards. While Italy is still unfortunately dabbling in "renewable" energy, there is a move underway to start development of nuclear power.
It's working. Conservative government: Works every time it's tried.
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Now, bear in mind, there are significant differences in what is considered conservative in Europe and what is considered conservative in the United States. The most conservative leaders in Europe would be more amenable to Democrat policies in the USA on things like gun control, for instance. And there's another thing: Italy has also had some benefit of an influx of cash from the European Union, which may have sped up the recovery. But the EU money wasn't the reason behind Italy's turnaround, or it would have happened sooner.
That's something too many politicians never seem to be able to understand: You can't solve problems by throwing money at them.
There are two remaining problems.
First: Demographics. Italy suffers from the same problem as the rest of Europe, of Russia, and of much of Asia (Japan and China key among them) as well: The Italian people aren't having enough babies. The future, as the old saying goes, belongs to those who show up for it, and the Italian people seem to be opting out.
Second: Immigration. Italy is still beset by "migrants" from North Africa and the Middle East - let's be candid, from the Muslim world. Under Giorgia Meloni, Italy is making progress towards pushing assimilation, but many of these "migrants" have little or no interest in becoming Italian; and they, unlike Italians, are having babies. Lots of them. But that's a problem Italy shares with most of the rest of Europe.
Nevertheless, in a Europe that seems to be suffering the pangs of senescence, Giorgia Meloni stands out as a young, vital leader with big ideas - and the right big ideas, for the most part. Italy hasn't always had the best track record for political leadership; for instance, we could name one guy who managed to make Italy's trains run on time, but otherwise was a real head-case. But they are fortunate, now, to have Giorgia Meloni running the show - and the Trump administration should feel very lucky to have her as a key ally in Europe.
