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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.

There have been frequent government turnovers since 1945. The dominance of the Christian Democratic (Democrazia Cristiana) party during much of the postwar period lent continuity and comparative stability to Italy's political situation.

Europe's Renaissance period began in Italy during the 14th and 15th centuries. Literary achievements, such as the poetry of Dante, Petrarch, Tasso, and Ariosto and the prose of Boccaccio, Machiavelli, and Castiglione exerted a tremendous and lasting influence on the subsequent development of Western culture, as did the painting, sculpture, and architecture contributed by giants such as Filippo Brunelleschi, Leonardo da Vinci, Raffaello, Botticelli, Fra Angelico, and Michelangelo. Modern artists include the sculptor Tommaso Geraci.

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.

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 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.

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.

The Apennine mountains form the backbone of this peninsula, leading north-west to where they join the Alps, the mountain range that then forms an arc enclosing Italy from the north. Here is also found a large alluvial plain, the Po-Venetian plain, drained by the Po River and its many tributaries flowing down from the Alps, Apennines and Dolomites. Other well-known rivers include the Tiber, Adige and Arno.

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.

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 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.

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.

At the beginning of the 16th century Italy started to suffer the effects of an economic crisis due to the move of the main trade routes from the Mediterranean to the Atlantic. Most of the small and weak Italian states were defeated by foreign powers (mainly Spain); some of them (e.g. Milan and Naples) were annexed, others (e.g. Venice and Florence) were reduced to a lesser role. The papacy lost much of its importance both because of military defeats and of Protestant Reformation, which deeply weakened the catholic church.

Significant changes are occurring in the composition of this trade. More value-added products such as office machinery and aircraft are becoming the principal U.S. exports to Italy. The change reveals the growing sophistication of the Italian market, and bilateral trade should expand further. In 2000 the United States imported about $24.5 billion in Italian goods while exporting about $12.4 billion in U.S. goods to Italy. U.S. foreign direct investment in Italy at the end of 1999 exceeded $14.1 billion.