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In the final phases of the Second World War, the discredited king Victor Emmanuel III tried to raise the prestige of the monarchy by nominating his son and heir Umberto II "general lieutenant of the kingdom" and promising that after the end of the war the Italian people could choose its form of government through a referendum. A new constitution was written for the new republic, taking effect on January 1, 1948. The referendum at the origin of the Italian republic was, however, the object of deep discussion, mainly because of some contested results.

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.

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.

In the fifties Italy became a member of the NATO alliance and an ally of the United States, which helped to revive the Italian economy through the Marshall Plan. In the same years, Italy also became a member of the European Economical Community (EEC), which later transformed into the European Union (EU).

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 is largely homogeneous linguistically and religiously but is diverse culturally, economically, and politically. Italy has the fifth-highest population density in Europe — about 196 persons per square kilometer (490 per square mile).

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.

The musical influence of Italian composers Palestrina, Monteverdi, Corelli and Vivaldi proved epochal; in the 19th century, Italian romantic opera flourished under composers Gioacchino Rossini, Giuseppe Verdi, and Giacomo Puccini. Contemporary Italian artists, writers, filmmakers, architects, composers, and designers continue to contribute significantly to Western culture.

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.

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 strengthened its ties with Germany on May 22, 1939 when both Nations signed the Pact of Steel This document solidified the alliance between the two regimes.

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.

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.

Islam was almost entirely absent in Italy from the time of that country's unification in 1861 until the 1970s, when the first trickle of North African immigrants began arriving. These North Africans, mostly of Berber or Arab origin, came mainly from heavily Islamic Morocco, though they have been followed in more recent years by Tunisians, Albanians and to a lesser extent, Libyans, Egyptians, Pakistanis, Middle Eastern Arabs and Kurds. Some estimate the number of Italian converts to be around 10,000.