Giorgia Meloni has been sworn in as Italy's first woman prime minister alongside her cabinet team, leaving the country with its most far-right government since the deposition of Fascist leader Benito Mussolini at the end of World War Two.

Here's what you need to know about her ascension, her ministerial choices, and what it all means one of Europe's largest economies. 

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Far-right swing in turbulent times

Meloni took the prime-ministerial oath before President Sergio Mattarella at the Quirinal Palace in Rome, once home to popes and kings of Italy, on Saturday, officializing Italy's right-wing drift. 

Head of the proto-fascist Brothers of Italy party, Meloni secured her victory in an election last month as part of a coalition that included Matteo Salvini's anti-immigrant League and hard-right Forza Italia, led by former Prime Minister Silvio Berlusconi.

She takes office at a difficult time, with Italy's debt-stricken economy primed for recession, companies struggling to stay afloat amid soaring energy bills, and major divides within her coalition over the war in Ukraine.

Meloni's party has neo-fascist roots, but like France's far-right Marine Le Pen, she strove to project a more moderate image during the election campaign. That included cutting previous anti-EU statements and vowing to keep Italy at the heart of European and Western institutions.

Despite apparent divisions with proponents of liberal democracy, EU leaders and U.S. President Joe Biden sent their congratulations to the new leader. EU chief Ursula von der Leyen wrote on Twitter from Brussels: "I count on and look forward to constructive cooperation with the new government on the challenges we face together." 

More effusive about the appointment were Europe's nationalist conservatives, including Hungarian Prime Minister Viktor Orban, who are hoping Meloni's government will be a useful ally in their battles with Brussels.

France's Le Pen tweeted in response to her ascension, "All over Europe, patriots are coming to power." 

Italy's new cabinet

After tense talks, she unveiled her coalition team this week, giving five ministries each to the League and Forza Italia, while reserving nine cabinet posts for her own party. Technocrats make up the rest of the 24-person cabinet, which includes six women and where the average age is 60.

Meloni's economy minister, Giancarlo Giorgetti is a political veteran and seen as a relatively pro-European member of his right-wing League party. As industry minister in Mario Draghi's outgoing government, he helped block a number of Chinese takeover bids in strategic sectors of Italy's economy.

The Foreign Ministry was given to Forza Italia veteran Antonio Tajani, one of Berlusconi's closest aides, who will also act as a deputy prime minister. The 69-year-old, considered to have solid EU credentials due to his various senior European Commission and Parliament roles, said his first act would be to call his Ukrainian counterpart to assure him of Italy's continued solidarity.

Meloni's other deputy prime minister is far-right fire brand Matteo Salvini, a former interior minister and the long-time head of the anti-immigration League party. A proponent of mass migrant deportations and one-time fervent supporter of President Putin, Salvini has denied allegations his party was funded by Moscow and has criticised the invasion of Ukraine.

The Interior Ministry goes to Matteo Piantedosi, who as Salvini's chief of staff during his term at the same building, helped him shape Italy's hard-line anti-immigration policies.

Defense was given to Guido Crosetto, a defense industry lobbyist who is a close aide to Meloni and the co-founder of her party.

Potential directions and divisions

Meloni is due to hold her first cabinet meeting on Sunday following a formal handover of power. During the week she will then will face obligatory confidence votes in parliament that she should easily win, given her comfortable majority.

One of the key factors tying Meloni's government together is anti-immigration. Campaigning on a platform of "God, country and family", she has sparked fears that the Catholic-majority country is set for sharp rightwards drift on social policy. 

In terms of economics, the coalition's main goals will be to renegotiate Italy's portion of the EU's post-Covid recovery fund. It argues the almost 200 billion euros ($197 billion) it expects to receive should take into account the current energy crisis.

However, divisions over Ukraine are expected to characterize the early days on her coalition government. Meloni is an ardent supporter of Kyiv's cause, by contrast to the leaders of Forza Italia and the League, who are both considered close to Moscow.

In fact she recently had to issue a warning to Berlusconi after a recording of the former Italian leader was leaked where he blames Kyiv for the conflict and reveals he has exchanged gifts and "sweet letters" with his friend, Russian President Vladimir Putin.

Berlusconi said the remarks were taken out of context, but Meloni stressed that her administration would be firmly pro-NATO and pro-European amid the conflict. "Anyone who does not agree with this cornerstone cannot be part of the government," she said.

Another potential area of contention is Salvini's apparent displeasure at not regaining his role at the interior ministry, although the dispute appears to have been smoothed over.

However, speculation remains that splits over such infighting and the Ukraine conflict could be strong enough to break up the right-wing alliance. That would mean an end of the coalition's parliamentary majority, and - what Meloni will be hoping to avoid - the collapse yet again another government.

But for now, the Italian hard-right is in its ascendancy.