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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.

At the beginning of World War I Italy remained neutral, since the Triple Alliance had only defensive purposes, and the war was started by Austria. However, both the central empires and the Entente tried to attract Italy on their side, and in April 1915 the Italian government agreed (London Pact) to declare war on Austria in exchange for several territories (Trento, Trieste, Istria, Dalmatia). In October 1917, the Austrians, having received German reinforcements, broke the Italian lines at Caporetto, but the Italians (helped by their allies) stopped their advance on the river Piave, not far from Venice. After another year of trench warfare, and a successful Italian offensive in autumn 1918, the exhausted Austria surrendered to the allies on November 4 1918, soon followed by Germany.

Under the 1947 peace treaty, minor adjustments were made to Italy's frontier with France, the eastern border area was transferred to Yugoslavia, and the area around the city of Trieste was designated a free territory. In 1954, the free territory, which had remained under the administration of U.S.–U.K. forces (Zone A, including the city of Trieste) and Yugoslav forces (Zone B), was divided between Italy and Yugoslavia, principally along the zonal boundary.

All on its treat agriculture is typical of the division between the agricultures of the northern and southern countries of the European Union. The northern part of Italy produces primarily grains, rice, corn, sugarbeets, soybeans, meat, and dairy products, while the south specializes in producing fruits, vegetables, olive oil, wine, and durum wheat.

In order to prevent the further expansion of Protestantism, the church endorsed the wars of the emperor Charles V (who was also king of Spain) and his successors, and started the so-called Counter-Reformation, with which it established a strict control over intellectual life in catholic countries.

While the Allied troops slowly pushed the German resistance to the north (Rome was liberated in June 1944, Milan in April 1945) the monarchic government finally declared war on Germany, and an anti-fascist popular resistance movement grew, harassing German forces before the Anglo-American forces drove them out in April 1945.

Italy has some of the Worlds most ancient tourist resorts, dating back to the time of the Roman Republic, when destinations such as Pompeii, Naples, Capri and especially Baiae were popular with the rich of Roman society.

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).

Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Union and has benefited from lower interest and inflation rates. Italy joined the Euro from its conception in 1999.

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.