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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 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.

The name Italy (Italia) is an ancient name for the country and people of Central Italy, with exclusion of Etruria in the North and the Greek colonies in the South. Coins bearing the name Italy were minted by an aliance of Italic tribes (Sabines, Samnites, Umbrians and other) competing with Rome in the first century B.C. By the time of emperor Augustus approximately the present territory of Italy was included in Italia as the central unit of the Empire; Cisalpine Gaul, the Upper Po valey, for example was appended in 42 B.C. Ever since, "Italy" or "Italian" was the collective name for diverse states appearing on the penninsula and their overseas properties. Italy is one of the few modern countries bearing a name of such long tradition.

Italy has been a democratic republic since June 2, 1946, when the monarchy was abolished by popular referendum. The constitution was romulgated on January 1, 1948. The Italian State has a central state authority (the Government), 20 regions and about a hundred provinces. The prefect of each of the provinces is appointed by and responding to the central government, which he locally represents.

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.

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.

Despite the everlasting struggles with foreign powers and within themselves, the northern cities' wealth continued to grow, until at least the 15th century, leading to great intellectual and artistical achievements such as those Dante, Giotto and of the Italian Renaissance masters (such as Michelangelo, Leonardo and Raffaello). This golden age ended in the 16th century, when the Italian city-states became prey of larger national states such as France and Spain.

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.