Political Turbulence: Meloni's Investigation Sparks Investment Concerns

Italy's Prime Minister Giorgia Meloni faces an investigation related to the release of Libyan suspect Osama Elmasry Njeem, posing potential negative impacts on foreign investment, especially by the Norwegian wealth fund. Despite damage to Italy's reputation, her political party remains popular amidst economic stagnation.

The political landscape in Italy is currently tumultuous as Prime Minister Giorgia Meloni comes under investigation for allegedly aiding and abetting a crime, involving the controversial release of Libyan suspect Osama Elmasry Njeem. This development is raising concerns about its potential effects on international investment.

Meloni criticized the judiciary's actions, emphasizing that the negative publicity from her investigation could scare off investors, such as the significant Norwegian wealth fund, which recently increased its investment in Italian sovereign bonds to over 8 billion euros. Concerns mount over whether this figure could diminish due to the current instability.

Despite these challenges, Meloni's political support remains unwavering. Her Brothers of Italy party continues to hold strong public approval, evidencing a two-year high of above 30%. The investigation, which also involves three other government officials, is seen as unlikely to result in a trial without parliamentary approval.

(With inputs from agencies.)