Italian Prime Minister Giorgia Meloni has forcefully rejected Donald Trump’s claim that she was ‘begging’ for a photo during a recent meeting, a diplomatic spat that has drawn the United Kingdom into a defence of its European ally. The incident, which erupted over the weekend, underscores the fraying transatlantic ties and the volatility of political discourse under a potential second Trump presidency.
Meloni, known for her combative style, took to social media to denounce the former US president’s remarks as ‘inaccurate and disrespectful’. The row began when Trump, at a rally, suggested that Meloni had pleaded for a photograph with him, a claim that Italian officials swiftly denied. The UK government, through its ambassador to Rome, issued a statement supporting Meloni, calling her a ‘valued partner’ and emphasising the importance of respect among allies.
For the markets, this is more than a petty squabble. The UK’s backing of Meloni signals a strategic alignment against the protectionist and erratic tendencies of a possible Trump return. Investors are already pricing in the risk of trade disruptions: if Trump wins in 2024, expect tariffs on European goods and a further squeeze on global supply chains. The gilt market, already jittery over UK fiscal discipline, could see renewed pressure if the UK is dragged into a transatlantic trade war.
Meloni’s domestic position is also a factor. She has walked a tightrope between Trump-friendly nationalists and pro-European pragmatists. This spat might help her shore up credentials with the latter, but it exposes Italy to US retaliation. Italian bond yields have crept up, reflecting investor unease. The BTP-Bund spread, a key barometer of eurozone stability, widened marginally on the news.
For London, the calculus is clear: backing Meloni is a hedge against populist upheaval. The UK has its own issues with Trump – from trade deals to Brexit – and aligning with a fellow centre-right leader offers diplomatic cover. But this is a risky play. If Trump returns, he will remember who stood against him. The City should brace for volatility.
Meanwhile, central banks watch nervously. The Bank of England, already battling sticky inflation, cannot afford a trade shock. Governor Bailey may need to signal readiness to intervene if sterling weakens. The dollar is already strengthening on safe-haven flows, and a protracted diplomatic war would only accelerate capital flight from Europe.
In the end, this is a sideshow to the main event: the battle for the soul of Western populism. Meloni’s rebuke of Trump is a rare moment of clarity. But markets abhor uncertainty, and this spat is a reminder that the next US election will be fought not just on tariffs but on reputations. For now, the UK has chosen its side. The cost of that choice remains to be seen.
