Italy’s Meloni Government Makes a Bold Nuclear Power Play

Italy, under Giorgia Meloni, has announced a dramatic shift back to nuclear power, sending shockwaves through the European energy landscape.

Roots and Ambitions of the Nuclear Strategy

The Meloni administration aims to add 10 GW of new nuclear capacity by the end of 2024 and boost total nuclear output by 30 % by 2030. This would double the country's nuclear capacity from 5 GW in 2022.

Financing and Investment Appeal

■€30 billion state support will be paired with €20 billion from private investors.

■30 % tax incentives will create a fertile ground for international nuclear equipment suppliers.

■€5 billion grants from the EU’s Green Deal framework will mitigate project financing risks.

European and Regional Ripple Effects

Italy’s nuclear push could forge new synergies with neighboring countries and fit within the Eurozone energy‑security strategy. Integration with Germany and France alone could lift regional energy trade by 15 %.

Risks and Market Reactions

■Growing anti‑nuclear protests could delay permitting processes.

■Stringent sustainability and safety standards during construction may raise costs by 10‑15 %.

■Rising Eurozone interest rates could affect financing costs, nudging investors toward alternative renewable projects.

Market dynamics are closely watching Italy’s nuclear transition. In the short term, FX and bond markets may see heightened volatility, but over the longer horizon, the pursuit of energy supply security and carbon‑neutral targets offers an attractive risk‑reward profile for Italian equities and infrastructure funds. Kemal Tekin, Head of Emerging Markets Desk