After plunging into the political mainstream, Italy's far-right leader Giorgia Meloni is now shocking markets and upsetting big business

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Giorgia Meloni was elected in October and, as well as being the country’s first female PM, is also the first from a far-right party since the end of World War II.

Erik Jones, a professor at the European University Institute in Italy, told CNBC he didn't believe this was a more"populist" government than that witnessed over the past year, with Meloni and her finance minister, Giancarlo Giorgetti, trying to spend without running up huge deficits.

That's expected to drop to 140.5% this year and then again to 138.8% in 2024. The Italian economy is seen growing at a rate of 1.1% this year and 0.9% in 2024, according to the IMF. This represents a fall from the 3.7% gross domestic product registered in 2022.Despite the general expectation that the Italian government is unlikely to go down any more controversial avenues, analysts have mentioned two events that international investors should keep a close eye on.

 

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