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Italy has been a democratic republic since June 2, 1946, when the monarchy was abolished by popular referendum. The constitution was romulgated on January 1, 1948. The Italian State has a central state authority (the Government), 20 regions and about a hundred provinces. The prefect of each of the provinces is appointed by and responding to the central government, which he locally represents.

The institutions of the Roman republic, born for governing a city-state, were unfit to rule over such a large empire. Furthermore, there was discontent both inside Rome and between Rome and its Italic allies, and the tension favored military commanders, who started taking dictatorial powers. The first of these was Sulla, who prevented an overthrow of the republic by Marius but became a sort of "lord protector" of the Senate until his death (78 BC). After him came Julius Caesar, who after conquering the Gaul (present day France) won a civil war against Pompey but was assassinated by senators fearing he would start a monarchy, in 44 BC.

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.

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.

After the Lombard invasion, the popes (i.e. St. Gregory) were nominally subject to the eastern emperor, but often received little help from Constantinople, and had to fill the lack of stately power, protecting Rome from Lombard incursions; in this way, the popes started building an independent state.

Puglia (Apulia) and Calabria in the south serve up a very different atmosphere to the north, with centuries of occupation and settlement leaving behind traces of many, many cultures and civilisations. Ditto Sicily (Sicilia). These areas, along with less visited ones such as Marche, Emilia-Romagna and Liguria are likely to offer better bargains for the visitor to Italy.

Italy is well-known for its art, culture, and several monuments, among them the leaning tower of Pisa and the Roman Colosseum, as well as for its food (pizza, pasta, etc.), wine, lifestyle, elegance, design, cinema, theatre, literature, poetry, visual arts, music (notably Opera), holidays, and generally speaking, for taste.

Unemployment has been steadily decreasing but remains high (8.6% in 2003, its lowest level since 1992). It is especially severe in the south where average unemployment exceeded 20% this year. Women and youth have significantly higher rates of unemployment than do men. A rigid labor market serves as a disincentive to job creation. There is a significant underground economy absorbing substantial numbers of people, but they work for low wages and without standard social benefits and protections.

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,

The Guardia di Finanza (a specialised police for tax and financial crimes) is also a military corps, but it is going to be transformed, expectedly in a short time, into a civil administration, as previously happened for the State Police, Forestry Police and Prisons Police.

crisis arose in Italian society as a result of the First World War, social inequalities, and the consequent tension between Marxist and left-wing parties on one side and conservative liberals on the other. This crisis led to the advent of Fascism, which destroyed freedoms and civil rights, and establishing a dictatorship. Fascism broke the continuity of the parliamentary tradition. The support of ruling elite and especially Italian monarchy was crucial for the seizure of power by Benito Mussolini. After the March on Rome, the King Vittorio Emmanuele III refused to sign a decree to declare a state of siege, and asked Mussolini to form a new government. This King's decisions were taken in accordance with the Statuto, but in contrast with the parliamentary practice of Italian liberal state.

At the beginning of World War II Italy remained neutral (with the consent of Hitler), but it declared war on France and Britain on June 10, 1940, when the French defeat was apparent. Mussolini believed that Britain would beg for peace, and wanted "some casualties in order to get a seat at the peace table", but that proved a huge miscalculation. With the exception of the navy, the Italian armed forces were a major disappointment for Mussolini and Hitler, and German help was constantly needed in Greece and North Africa.

Significant changes are occurring in the composition of this trade. More value-added products such as office machinery and aircraft are becoming the principal U.S. exports to Italy. The change reveals the growing sophistication of the Italian market, and bilateral trade should expand further. In 2000 the United States imported about $24.5 billion in Italian goods while exporting about $12.4 billion in U.S. goods to Italy. U.S. foreign direct investment in Italy at the end of 1999 exceeded $14.1 billion.

According to legend, Rome was founded in 753 BC by Romulus and Remus, and was then governed by seven Kings of Rome. In 509 BC the last of them, Tarquinius Superbus was overthrown, and the Roman Republic was formed. The Republic was ruled by two elected consuls at a time, while the Senate (formed by the most notable Patricians, that is, aristocrats) and a city assembly formed a sort of Parliament.