If you really follow Italian politics you'd know it's been like that for 200+ years -- that's how the place operates. And with all that going on they managed to create a world-class automotive industry, ship-building industry, industrial equipment industry, etc.
I have the feeling you are talking about Italy through the lens of western media, and not through first-hand knowledge or experience.
Industrially, Italy is much more like South Korea than Greece or Spain.
Wage is and has been low and the cost of living has been rising rapidly and young people (not all but many) are subscribing to very dangerous ideologies (both left and right). This stifling will only get worse, even in the middle of a tightening cycle, ECB is insisting they have to keep buying Italian bonds to keep them afloat, what signal does that send? Even euro dollar market is taking a hit partly because of the political turmoil in Italy.
There is a huge migrant population that are “ghettoized” so to speak and there doesn’t seem to be a long term plan with them.
To be entirely honest what italy has in terms of political situation is an excess of stability, but i digress.
Anyway the real issue in my view is that the EU chips act's investment size is anemic compared to the recent equivalent US initiative. But still it's a step in the right direction and the amount allocated to italy is so comparatively small as to be negligible.