After years of fragile conditions, Italy may have a chance for some political stability.

Following Sunday’s election Italy’s right-wing bloc should have a solid majority in parliament. Potentially offering a rare chance for the country to have political stability after years of fragile conditions. Leader of nationalist Brothers of Italy, Giorgia Meloni, is set to become Italy’s first woman prime minister at the peak of its most right-wing government since World War Two! (investing.com). The joys are currently at a high, but Meloni faces an intimidating list of challenges, including soaring energy prices, war in Ukraine and a renewed slowdown. Though the real question is, how does this impact the markets for investors watching closely?

Maybe the PM’s comments during the election on respecting EU budget rules reassured markets, maybe the markets will become healthier during these difficult economic periods. Italy is one of the most indebted countries in the world, with debt as a share of GDP at 151% (investing.com), hence with the new government this could fall more the expected. But if EU fund payments fall short, they could rise. It will be interesting how the months following to the new year pan out.