After plunging into the political mainstream and winning over her more moderate counterparts in Brussels, hardline Italian Prime Minister Giorgia Meloni is now shaking things up on home soil.
Europe's main banking index dropped some 2.7% on Aug. 8 after Italy announced it would impose a 40% windfall tax on banks.
Airlines have rebuffed other policy measures, with a new government plan to curb prices when flying to certain destinations.
So far during her mandate, Meloni has largely fallen in line with mainstream political positions at home and abroad, despite concerns from some that she may push her country to the fringes.
Federico Santi, a senior analyst at consultancy Eurasia Group, told CNBC via email that her backtrack on the windfall tax "was a major misstep, in perception and substance."
Persons:
Giorgia Meloni, Meloni, Federico Santi, Santi
Organizations:
Airlines, European Commission, European Union, Kremlin, Eurasia Group, CNBC
Locations:
Brussels, Italian, Italy, Ukraine