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The Georgian government of Meloni has set a new record for the longest continuous term in Italy's post-World War II era, while former leaders and analysts are calling for political stability to push forward economic reforms amid pressures from high public debt and interest costs.
On September 5, 2026, CNBC reported that Italian Prime Minister Georgia Meloni led her government to a new record for political stability, becoming the longest continuous term in office since the end of World War II. This reflects a significant change in Italian politics, which in the past has often faced frequent changes of government and high levels of political uncertainty.
Meloni's continued hold on power has provided political stability and eased market concerns about government uncertainty. However, this political stability comes with significant economic challenges, particularly Italy's persistently high public debt, exceeding 135% of GDP.
Italy's high debt burden puts financial cost pressure on it, especially at a time when interest rates remain high, increasing the burden of interest payments and limiting the room for using fiscal policy to stimulate the economy.
Although the Italian government bond market (BTP) has become more stable compared to the volatility seen in some other European bond markets, particularly France, high debt levels remain a key factor that investors are watching.
Former political leaders and analysts are therefore urging Meloni to leverage the current government stability and political capital to accelerate structural reforms in order to boost economic growth and reduce long-term fiscal vulnerabilities.
Key issues requiring urgent action include stimulating the prolonged economic stagnation, controlling and prioritizing government spending, and planning for continued public debt reduction to maintain financial market confidence and control the country's borrowing costs.
While the Meloni government has achieved a level of political stability rarely seen in Italy in recent decades, the key challenge going forward is to translate that stability into momentum for economic reforms and to create long-term fiscal sustainability.
Reference: cnbc.com
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