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From 1992 to 1997, Italy faced significant challenges as voters (disenchanted with past political paralysis, massive government debt, extensive corruption, and organized crime's considerable influence) demanded political, economic, and ethical reforms. In 1993 referendums, voters approved substantial changes, including moving from a proportional to a largely majoritarian electoral system and the abolishment of some ministries (some of which have however been reintroduced with only partly modified names).

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 Libertą, 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 Libertą 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.

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 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.

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.

After the German army defeated Poland, Denmark, and France, a still-jealous Mussolini decided to use Albania as a springboard to invade Greece. The Italians launched their attack on October 28, 1940, and at a meeting of the two fascist dictators in Florence, Mussolini stunned Hitler with his announcement of the Italian invasion. Mussolini counted on a quick victory, but Greek resistance fighters halted the Italian army in its tracks and soon advanced into Albania. The Greeks took Korēė and Gjirokastėr and threatened to drive the Italians from the port city of Vlorė.

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.

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 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.