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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.

Italy's economic performance has at times lagged behind that of its EU partners, and the current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. It has moved slowly, however, on implementing certain structural reforms favored by economists, such as lightening the high tax burden and overhauling Italy's rigid labour market and expensive pension system, because of the current economic slowdown and opposition from labour unions.

Italy has few natural resources. With much of the land unsuited for farming, it is a net food importer. There are no substantial deposits of iron, coal, or oil. Proven natural gas reserves, mainly in the Po Valley and offshore Adriatic, have grown in recent years and constitute the country's most important mineral resource. Most raw materials needed for manufacturing and more than 80% of the country's energy sources are imported. Italy's economic strength is in the processing and the manufacturing of goods, primarily in small and medium-sized family-owned firms. Its major industries are precision machinery, motor vehicles, chemicals, pharmaceuticals, electric goods, and fashion and clothing.

The birth of the Italian republic (officially on June 2, 1946) is a key event of Italian contemporary history. It is controversial because of suspicions of fraud that were advanced by monarchists). Until 1946, Italy was a monarchy ruled by the House of Savoy (kings of Italy and, previously, of Sardinia). In 1946, after the results of a popular referendum, it became a republic. A Constituent assembly was elected at the same time to prepare a new constitution for the Republic. This article is about the Referendum on the form of State.

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.

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.

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 the postwar settlement, Italy received most of the territories promised in the 1915 agreement, except for Dalmatia, which was mostly given to the newly formed Kingdom of Yugoslavia. - because some Italian workers, inspired by the Russian revolution began taking over their factories, mills, farms and workplaces. The liberal establishment, fearing a revolution, started to endorse the small Fascist Party, led by Benito Mussolini (a former socialist turned nationalist), whose violent reaction to the strikes (by means of the "Black shirts" party militia) was often compared to the relatively moderate reactions of the government. After several years of struggle, in October 1922 the fascists attempted a coup (the "Marcia su Roma", i.e. March on Rome); the fascist forces were largely inferior, but the king ordered the army not to intervene, formed an alliance with Mussolini, and convinced the liberal party to endorse a fascist-led government. Over the next few years, Mussolini (who became known as "Duce", leader) eliminated all political parties (including the liberals) and curtailed personal liberties with the pretext of preventing revolution.

The Italian economy has changed dramatically since the end of World War II. From an agriculturally based economy, it has developed into an industrial state ranked as the world's fifth-largest industrial economy. Italy belongs to the Group of Eight (G-8) industrialized nations; it is a member of the European Union and the OECD.

Football is the main national sport and the Italians are well known for their passion for this sport. Italy has won the Football World Cup three times: in 1934, 1938 and 1982.