If you can find Juan Gil in your neck of the woods, I'd recommend giving it a shot. Some friends served it at dinner, we bought a case the next day. Just now I did a google check on the price (I remembered it was less than $30 but couldn't remember how much) and it came up for sale on the internet at $16.99 a bottle. It also showed a RP rating of 90 if you're into that. Very nice Spanish red that works well with food, but could be enjoyed on its own.

For a merlot in the same price range look for the American Winetasters Society merlot. I haven't tried the latest release, however, past releases have been very nice at the price. AWS is not a vineyard - the 2003 was from the Stags Leap district, the current 2005 release is from Oakville.

A number of good Zins in and around this price, Seghesio Sonoma Zinfandel may be a bit over $20, can be found for a bit under. Gallo's Rancho Zabaco Heritage Vines Zinfandel is nice and in your price range, the less expensive Dancing Bull makes a great party wine at <$10/bottle.

And to bring back to Italian, which is where the OP started try Masi Campofiorin Rosso del Veronese

Cheers,
Jeff