Service in Naples
In 1779, Maria Carolina of Naples persuaded her brother Leopold of Tuscany to allow Acton, who had been recommended to her by Francesco d'Aquino, Prince of Caramanico, to undertake the reorganisation of the Neapolitan Navy. The ability displayed by him in this led to his rapid advancement. He became commander-in-chief of both the Neapolitan army and the navy, minister of finance, and finally prime minister. His policy, devised in concert with Sir William Hamilton, the British ambassador to Naples, aimed at removing Spanish influence from Naples and replacing it with that of Great Britain and Austria. The policy led to open opposition to France and the French party in Italy.
The Neapolitan navy, which when Acton entered the service of Naples had been practically non-existent, he had built up by 1798 to 120 ships with 1,200 cannon, while the land forces had increased fourfold from 15 to 60 thousand. Unfortunately in no degree were the interests of Naples promoted by the vainglorious policy thus inaugurated, which speedily resulted in disaster. Although Acton had aimed to extend the commerce of the country by increasing the facilities of internal communication and restoring some of the principal ports, the increased taxation required to support the army and navy more than counter-balanced these efforts and caused acute distress and general discontent. The introduction of foreign officers into the services, which had aroused the resentment of the upper classes, was further augmented when the fleet was placed under the orders of the British Admiral Horatio Nelson.
Although Nelson and the British fleet had extinguished French naval power in the Mediterranean by his victory at the Battle of the Nile in August 1798, thereby saving the Kingdom of Naples from naval conquest by Revolutionary France, the French armies entered the north of Italy, where they met successes. In response in December 1798 the King and Queen, together with Acton, Hamilton (and his wife Lady Emma Hamilton), by order of Nelson were evacuated from Naples on board HMS Vanguard to the King's Sicilian capital of Palermo. Thereupon, freed of the royal presence, the Neapolitan citizens and nobles sympathetic to the ideals of the French Revolution promptly established the short-lived Parthenopean Republic, with the aid of the French. However the monarchy was restored in Naples five months later with the help of a Calabrian army, called the Sanfedisti, led by Cardinal Ruffo. To re-establish order and with the consent of the Queen and the help of Ruffo, Acton established at Naples the Junta of State, a reign of terror during which many prominent citizens were thrown into prison or executed.
In 1804, Acton was removed from power, on the demand of France, but nevertheless advised the king, who had agreed to an alliance with Napoleon, to permit British and Russian troops to land at Naples. Acton was granted a pension of 3000 ducats and was created Duke of Modica, which he later renounced. Shortly afterwards, the minister was recalled, but when the French entered Naples in 1806, he together with the royal family again took refuge in Sicily. A letter of 25 July 1809 reported that Acton had "returned a few days since from the baths of Termina, not in the least benefited by their waters. The painful effects of a paralytic stroke, and a severe fall last year, are now aggravated by a nearly total deprivation of sight."