Article – Italy’s influential business leaders are applying mounting pressure on Prime Minister Giorgia Meloni’s administration to accelerate economic reforms amid growing concerns about the country’s competitiveness and stagnant growth trajectory.
During the annual Ambrosetti Forum in Cernobbio this weekend, CEOs and financial executives expressed frustration over what they describe as a sluggish pace of structural changes needed to revitalize Italy’s economy, which continues to underperform compared to European peers.
“The initial goodwill toward Meloni’s government is wearing thin among business circles,” said Marco Tronchetti Provera, CEO of Pirelli, speaking on the sidelines of the forum. “We appreciate the fiscal discipline, but Italy needs decisive action on labor market flexibility, bureaucratic simplification, and digital infrastructure if we’re going to compete globally.”
The business community’s impatience comes as Italy’s economic growth forecast has been revised downward to just 0.7% for the current year, according to the latest Bank of Italy projections. This places the country significantly behind the eurozone average of 1.3% expected growth.
Carlo Messina, CEO of Intesa Sanpaolo, Italy’s largest bank by assets, pointed to specific concerns. “The implementation gap is our biggest challenge. We have a €200 billion National Recovery and Resilience Plan funded by the EU, but disbursements are falling behind schedule due to administrative bottlenecks and political hesitation on certain reforms.”
The criticism reflects growing unease about Italy’s ability to address its structural weaknesses, including Europe’s second-highest public debt-to-GDP ratio at approximately 140%, according to Eurostat data released last month.
Finance Minister Giancarlo Giorgetti, who attended the forum, defended the government’s approach, emphasizing fiscal prudence as a foundation for sustainable reforms. “We are methodically addressing decades of economic mismanagement,” Giorgetti stated. “Quick fixes might please markets temporarily but won’t deliver lasting results.”
However, his reassurances failed to quell business leaders’ concerns, particularly regarding Italy’s competitiveness in attracting and retaining investment. A recent European Commission report ranked Italy 20th among EU countries for business environment friendliness, highlighting persistent issues with administrative procedures, legal system efficiency, and tax complexity.
Emma Marcegaglia, former president of Confindustria, Italy’s main business association, offered a stark assessment: “The international investment community is watching closely. Without clear signals of reform momentum, capital will flow elsewhere in Europe. We’re already seeing this happen in key industrial sectors.”
The pressure comes at a delicate moment for Meloni, who has maintained relatively strong public approval ratings but faces growing scrutiny over her economic policy credentials. Her right-wing coalition has prioritized social issues and immigration concerns, while business leaders argue economic transformation deserves equal attention.
Economic data underscores these concerns. Labor productivity in Italy has grown just 0.4% annually over the past decade, less than half the EU average, according to OECD statistics. Meanwhile, foreign direct investment inflows remain significantly below pre-pandemic levels.
Several business leaders pointed to specific reform priorities they believe would stimulate growth. Diana Bracco, CEO of the Bracco Group, emphasized innovation policy: “We need targeted tax incentives for research and development that match what France and Germany offer. Our talent is leaving because the ecosystem doesn’t support innovation.”
Energy transition challenges also featured prominently in discussions. Claudio Descalzi, CEO of energy giant Eni, highlighted regulatory uncertainties: “Italy needs a clear, stable framework for energy investment. The current approach creates hesitation precisely when we need massive capital deployment for the transition.”
The government has responded with promises to accelerate reforms in the coming months, particularly those tied to EU recovery fund requirements. However, political observers note that coalition tensions may complicate the reform agenda, especially regarding politically sensitive issues like labor market liberalization and pension system sustainability.
“Meloni is walking a tightrope,” says Francesco Daveri, economics professor at Bocconi University. “She needs to satisfy business demands for liberalization while maintaining support from voters who expect protection from market forces. This tension explains some of the reform delays.”
International investors are watching developments closely. Morgan Stanley‘s recent investor note on Italy struck a cautious tone: “While fiscal discipline has improved, the pace of structural reform remains inadequate to address Italy’s fundamental competitiveness challenges. We remain underweight Italian assets until reform momentum accelerates.”
As autumn budget negotiations approach, the pressure on Meloni’s economic team will likely intensify. The business community has signaled it expects concrete action, not just reassurances, in the government’s economic planning document due next month.
For now, Italy’s economic outlook remains clouded by uncertainty, with business leaders increasingly vocal about their impatience for the reforms they view as essential to the country’s future prosperity.
