For decades, Italy was viewed with suspicion by international markets and European institutions. Our country was too often described as fragile, unstable, doomed to live with a massive public debt and sluggish growth. It’s no coincidence that the international press branded us the “sick man of Europe” – a heavy label we carried for years.
Today, however, the picture looks different. This isn’t about a sudden miracle, but rather about a shift in perception rooted in hard numbers, signals of stability, and recognition from rating agencies and investors.
To understand just how significant this change is, we need to look back. In the postwar years, up until the mid-1970s, Italy experienced a true “golden age”: the economy grew on average 5.5 percent a year, fueled by unprecedented industrial expansion. Starting in the 1980s, however, the pace slowed. Productivity lagged behind our European partners, regional divides deepened, and bureaucracy weighed down competitiveness.
The 2008 global financial crisis and the subsequent eurozone crisis left deep scars, putting Italy under close watch alongside Greece and Portugal. In that context, the word “Italy” always implied additional risk – an extra premium to finance our debt, far higher than what was required of France or Germany.
That’s why what’s happening today carries enormous symbolic weight. For the first time in decades, Italian 10-year government bonds are yielding the same as French ones – about 3.47 percent. The French daily Le Monde called it a historic alignment, recalling that not long ago the spread with Paris could exceed 400 basis points. In other words, markets no longer see Italy as an anomaly to be penalized but as equal to one of Europe’s traditionally strongest economies.
The shift is also reflected in rating agency assessments. In September, Fitch upgraded Italy from BBB to BBB+, with a stable outlook. It’s the first upgrade in years – and not a gesture of goodwill. The agency based its decision on the reduction of the deficit, which fell in 2024 to 3.4 percent of GDP compared to a forecast of 3.8, and on greater political stability. In its statement, Fitch highlighted “growing confidence in Italy’s fiscal trajectory” and a “stable political backdrop” as factors strengthening our position. Equally telling was the comment from Filippo Mormando, strategist at BBVA, who noted that Italy has shown “a consistent and credible commitment to fiscal consolidation” – proof that bolsters our reliability.
A comparison with our European partners makes the picture even clearer. Germany, long the continent’s economic engine, saw its GDP contract by 0.3 percent in the second quarter of 2025. France posted modest growth of 0.3 percent, but beneath that lie structural weaknesses and domestic political turmoil. Paris, too, was downgraded by Fitch, from AA– to A+. Italy, while posting a slight –0.1 percent in the same quarter, was rewarded for the direction it’s heading rather than for the short-term number.
Of course, debt still weighs heavily. In 2025 it surpassed €3 trillion, about 137 percent of GDP, with forecasts pointing to 138 percent by 2026. But the point is that markets no longer focus only on the size of the debt. They look at how consistently a country manages it, whether it can keep it sustainable, and whether its institutions are stable. This is where Italy has made a difference – convincing investors that today the risk is lower than in the past.
This new standing has profound consequences. It means Italy is no longer seen as the problem to be contained, but as a reliable partner capable of offering solutions. It means that in Brussels we no longer arrive as tolerated guests but as players who sit at the table with real weight.
There’s also another dimension – less about numbers, more about geopolitics – that shouldn’t be overlooked. Italy has once again become a bridge. A bridge between North and South Europe, at a time when the continent risks splitting over austerity versus flexibility. A bridge between East and West, in an era when global tensions force Europe to confront shared security and defense challenges. And above all, a bridge between Europe and the United States – a natural role for a Mediterranean country that counts the Italian American community as one of its greatest strengths. This is crucial: our restored economic credibility not only strengthens Italy inside the EU, but also boosts the transatlantic dialogue. A solid, trustworthy Italy makes relations with Washington stronger, better supports the case for Made in Italy in American markets, and gives Italian Americans a positive story to share with pride.
Yet one essential truth remains: credibility is not a final destination, but a form of capital that must be guarded. Markets can grant confidence quickly – and just as quickly withdraw it if they sense inconsistency. That’s why turning this new image into concrete reforms will be critical: a more efficient justice system, a modernized public administration, a more dynamic labor market, and stronger investment in innovation and education. Only then can trust be turned into lasting stability.
After years of harsh judgments, we can finally say it with pride: Italy is no longer Europe’s weak link. It’s a solid partner that has earned credibility – and now must use it responsibly. For Italian Americans, that’s an extra reason to be proud. Not only for the beauty, art, and products that still showcase the greatness of our country, but also for the certainty that behind it all stands a stronger, more authoritative state.
It’s proof that Italian roots, so often defended and celebrated abroad, don’t rest in fragile soil but in ground that has regained stability, dignity, and a leading role on the geopolitical stage.
