Informed sources said that incoming Prime Minister Georgia Meloni is leaning towards choosing Economic Development Minister Giancarlo Giorgetti as Italy's next finance director.
Most Read by Bloomberg
Maloney, the leader of the right-wing coalition that won last month's election, likely has until next week to form a new government. The final decision on the formation of the Cabinet has not yet been made, and its priorities may change.
Giorgetti's chances increased after European Central Bank Governing Council member Fabio Panetta withdrew from the race. The people, who asked not to be named to discuss the confidential discussions, said current Finance Minister Daniele Franco, a Bank of Italy veteran, is still a possibility.
Regardless of his appointment, he will face the challenge of managing Italy's heavily indebted economy in the face of an energy crisis, rising borrowing costs and rising risks of recession. Meloni's struggle to find a world-renowned finance minister, the experience of European partners and Italian investors, left them worried about who would take the lead.
picture above
Giorgetti, 55, has been a key minister in Mario Draghi's government since 2021. He was previously a long-time League MP and remains one of its leading figures.
Meloni is scheduled to meet on Wednesday with League leader Matteo Salvini and former Prime Minister Silvio Berlusconi, his most important ally, to complete his ministerial slate. The names are expected to be presented to Italian President Sergio Mattarella in the coming days.
Representatives for Meloni and Giorgetti did not want to comment.
In addition to Franco, other names also appear in the Italian media: the former Bank of Italy official Luigi Butellione, the former Finance Minister Domenico Siniscalco, the Italian chief accountant Biagio Mazzuta.
Had Giorgetti accepted the position, it would have been a victory for the League, but not for its leader Matteo Salvini, who often clashed with the more moderate Giorgetti. The association is proposing significant tax cuts and deficit increases to protect the economy from the energy crisis.
youth movement
Giorgetti holds a degree in Business Administration from Milan's Baconi University and was an accountant before he was elected to Parliament in 1996. Since then, he has twice chaired the Budget Committee of the Chamber of Deputies, as well as serving as Deputy Secretary of the government of five-star leader Giuseppe Conte.
In the 1980s, Giorgetti was part of the far-right youth movement Front della Giovinto, linked to the Italian Movimento Sociale, the same political organization Meloni joined in the 1990s.
Most Read Bloomberg Businessweek
© Bloomberg LP 2022