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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.

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 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.

The 11th century signed the end of the darkest period in the middle ages. Trade slowly picked up, especially on the seas, where the four Italian cities of Amalfi, Pisa, Genoa and Venice became major powers. The papacy regained its authority, and started a long struggle with the empire, about both ecclesiastical and secular matter. The first episode was the Investiture controversy.

The Italian Republic or Italy (Italian: Repubblica Italiana or Italia) is a southern European country, comprising a boot-shaped peninsula and two large islands in the Mediterranean Sea: Sicily and Sardinia. It shares its nothern alpine boundary with France, Switzerland, Austria and Slovenia. The independent countries of San Marino and the Vatican City are enclaves within Italian territory.

Unions claim to represent 40% of the work force. Most Italian unions are grouped in three major confederations--the Italian General Confederation of Labor (CGIL), the Italian Confederation of Labor Unions (CISL), and the Union of Italian Labor (UIL), which together claim 35% of the work force. These confederations formerly were associated with important political parties or currents, but they have formally terminated such ties. Nowadays, the three often coordinate their positions before confronting management or lobbying the government. The three major confederations have an important consultative role on national social and economic issues.