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Italy strengthened its ties with Germany on May 22, 1939 when both Nations signed the Pact of Steel This document solidified the alliance between the two regimes.

At the end of the 8th century the popes definitely aspired to independence, and found a way to achieve it by allying with the Carolingian dynasty of the Franks: the Carolingians needed someone who could give legitimacy to a coup against the powerless Merovingian kings, while the popes needed military protection against the Lombards. As a result, in 774 the Franks invaded and defeated the Lombards, and their leader Charlemagne was proclaimed legitimate king of the Franks by the pope. Later, in 800, Charlemagne was also crowned emperor of the Holy Roman empire by the pope; the new emperor (who was never recognized as such by the Byzantines) immediately conceded direct rule over central Italy to the pope, creating the Papal States.

In 1929 Mussolini signed the Lateran Pacts with the Catholic Church (with whom Italy was in conflict since the annexation of Rome in 1870), leading to the formation of the tiny independent state of Vatican City. He was initially in friendly terms with France and Britain, but the situation changed in 1935-36, when Italy invaded Ethiopia despite their opposition (Second Italo-Abyssinian War); because of this and of the ideological affinities with the Nazi party led by Hitler,

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the United Kingdom. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed agricultural south, with 20% unemployment. In comparison to its western European neighbours, it has a high number of small to medium sized enterprises (SMEes).

Under longstanding bilateral agreements flowing from NATO membership, Italy hosts important U.S. military forces at Vicenza and Livorno (army); Aviano (air force); and Sigonella, Naples, and Gaeta – home port for the U.S. Navy Sixth Fleet. The United States has about 16,000 military personnel stationed in Italy. Italy hosts the NATO War College in Rome.

Italy's dramatic self-renewal transformed the political landscape between 1992 and 1997. Scandal investigations touched thousands of politicians, administrators, and businessmen; the shift from a proportional to an Additional Member System (with the requirement to obtain a minimum of 4% of the national vote to obtain representation) also altered the political landscape.

In the politically unstable situation after the fall of the western empire, the Church often became the only stable institution and the only source of learning. Even the barbarians had to rely on clerics in order to administrate their conquests. Furthermore, the catholic monastic orders, such as the Benedictines had a major role both in the economic life of the time, and in the preservation of the classical culture.

Italy was invaded by the Visigoths in the 5th century, and Rome was sacked by Alaric in 410. By the end of the century the peninsula was mostly under Ostrogothic control, and the last Roman emperor, Romulus Augustus, was deposed in 476 by Theodoric the Great. The eastern half of the Empire, now centred on Constantinople, invaded Italy in the early 6th century, and the generals of emperor Justinian, Belisarius and Narses, conquered the Ostrogothic kingdom after years of warfare. The collapse of the Ostrogoths allowed the Lombards to fill the gap, and the Eastern Empire could not hold on to its reconquered territory against the Lombard invasion. The Lombards ruled Italy until the late 8th century when their kingdom was conquered by Charlemagne.

From 1992 to 1997, Italy faced significant challenges as voters (disenchanted with past political paralysis, massive government debt, extensive corruption, and organized crime's considerable influence) demanded political, economic, and ethical reforms. In 1993 referendums, voters approved substantial changes, including moving from a proportional to a largely majoritarian electoral system and the abolishment of some ministries (some of which have however been reintroduced with only partly modified names).

The republican tradition in Italy had been started by Giuseppe Mazzini in the 19th century, but it immediately found a general consensus among the new political forces. The movement Giustizia e Libertà, that continued the traditional Mazzinian ideology, was the second important force during the resistance. It posed the question of the form of the state as a fundamental precondition to developing any further agreements with the other parties. Giustizia e Libertà joined the Comitato di Liberazione Nazionale (CLN). The various competing political factions agreed that a popular referendum would be held to determine the future choice of Head of State.

Italy consists predominantly of a large peninsula with a distinctive boot shape that extends into the Mediterranean Sea, where together with its two main islands Sicily and Sardinia it creates distinct bodies of water, such as the Adriatic Sea to the north-east, the Ionian Sea to the south-east, the Tyrrhenian Sea to the south-west and finally the Ligurian Sea to the north-west.