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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.

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 U.S.-Italian bilateral relationship is strong and growing. The U.S. and Italy cooperate closely on major economic issues, including within the G-8, which met in Genoa in July 2001. With a large population and a high per capita income, Italy is one of the United States' most important trade partners. In 2000 the United States was the fifth-largest foreign supplier of the Italian market and the largest supplier outside the EU. Total trade between the United States and Italy exceeded $33 billion in 1999. The U.S. ran a $12.1 billion deficit with Italy in 2000.

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.

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).

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 has many more languages than just Italian. Some counts put the number of living languages spoken in Italy at 33, including Cimbrian, Emiliano-Romagnolo, Ligurian, Piemontese, Sicilian, etc.

Major political parties, beset by scandal and loss of voter confidence, underwent far-reaching changes. New political forces and new alignments of power emerged in March 1994 national elections. The election saw a major turnover in the new parliament, with 452 out of 630 deputies and 213 out of 315 senators elected for the first time. The 1994 elections also swept media magnate Silvio Berlusconi (leader of "House of Freedoms" (Casa delle Libertà) coalition) into office as Prime Minister. Berlusconi, however, was forced to step down in January 1995 when one member of his coalition withdrew support. The Berlusconi government was succeeded by a technical government headed by Prime Minister Lamberto Dini, which left office in early 1996.

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.

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.

Even though much of its mountainous and nootinous terrain is unsuitable for farming, Italy has a large work force (1.4 million) employed in farming. Most farms are small, with the average farm only 7 hectares.

At the end of the 18th century, Italy was almost in the same political conditions as in the 16th century; the main differences were that Austria had replaced Spain as the dominant foreign power, and that the dukes of Savoy (a mountainous region between Italy and France) had become kings of Sardinia by increasing their Italian possessions, which now included Sardinia and the north-western region of Piedmont. This situation was shaken in 1796, when French armies led by Napoleon invaded Italy; even if the states they created (e.g., Cisalpine Republic) were just satellites of France, they sparked a nationalist movement. Cisalpine Republic was converted in Italian Republic in 1802, under presidency of Napoleon.

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.

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.

After the invasion of Soviet Union failed (1941-42), and the United States entered the war (December 1941), the situation for the Axis started to deteriorate. In May 1943 the Anglo-Americans completely defeated the Italians and the Germans in North Africa, and in July they landed in Sicily. King Victor Emmanuel III reacted by arresting Mussolini and appointing the army chief of staff, Marshal Badoglio, as Prime Minister.