Five Headaches Awaiting Italy’s Next Prime Minister
- Giorgia Meloni set for premiership after Sunday’s vote
- Challenges include budget, energy, Monte Paschi bank
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Italy’s Giorgia Meloni is set to become premier after her right-wing coalition won Sunday’s elections, but she will have little time to pop the prosecco.
Awaiting her are a darkening economic outlook, high debt and energy price hikes in the wake of Russia’s invasion of Ukraine. The hit to Italy’s finances and the prospect of more interest-rate hikes from the European Central Bank have pushed the yield on Italy’s 10-year bonds to more than 4.5% compared with less than 1% in December.