Moody’s adjusted leverage is typically assessed directionally using debt relative to EBITDA (often adjusted for items such as leases, pensions, and other debt-like obligations). From the provided data, a reasonable proxy is total financial debt / EBITDA.

For ERG S.p.A.:

- 2022 EBITDA: €499.4m, up from €396.7m in 2021, an increase of about 26%.
- Financial liabilities declined sharply:
  - Other noncurrent financial liabilities: €1,751.3m at 2022 year-end vs €2,064.1m prior year
  - Other current financial liabilities: €389.7m vs €1,342.7m prior year
  - Financial liabilities at fair value also declined from €215.6m combined to €76.6m
  - Lease liabilities rose modestly, but not enough to offset the reduction in borrowings.
- Cash decreased, but gross financial debt still fell substantially. Net debt direction also likely improved materially because the reduction in financial liabilities was larger than the cash decline.
- Cash flow from operating activities improved significantly, from €177.1m to €458.9m.

Using a simple gross debt-to-EBITDA proxy:
- 2021: roughly (€2,064m + €1,343m + €216m + leases €129m) / €397m ≈ 9.5x
- 2022: roughly (€1,751m + €390m + €77m + leases €157m) / €499m ≈ 4.8x

This indicates a clear reduction in leverage during 2022.

<answer>Improving</answer>