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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.

As a country, Italy offers many different faces, both culturally and geographically. The far north has many German speaking areas, popular destinations for skiing in the winter and walking during spring and summer. The Italian Lakes attract large numbers of visitors yearly, Tuscany (Toscana) and Umbria have been popular destinations for centuries, as has the Amalfi coast.

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.

The institutions of the Roman republic, born for governing a city-state, were unfit to rule over such a large empire. Furthermore, there was discontent both inside Rome and between Rome and its Italic allies, and the tension favored military commanders, who started taking dictatorial powers. The first of these was Sulla, who prevented an overthrow of the republic by Marius but became a sort of "lord protector" of the Senate until his death (78 BC). After him came Julius Caesar, who after conquering the Gaul (present day France) won a civil war against Pompey but was assassinated by senators fearing he would start a monarchy, in 44 BC.

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.

crisis arose in Italian society as a result of the First World War, social inequalities, and the consequent tension between Marxist and left-wing parties on one side and conservative liberals on the other. This crisis led to the advent of Fascism, which destroyed freedoms and civil rights, and establishing a dictatorship. Fascism broke the continuity of the parliamentary tradition. The support of ruling elite and especially Italian monarchy was crucial for the seizure of power by Benito Mussolini. After the March on Rome, the King Vittorio Emmanuele III refused to sign a decree to declare a state of siege, and asked Mussolini to form a new government. This King's decisions were taken in accordance with the Statuto, but in contrast with the parliamentary practice of Italian liberal state.

Italy consists predominantly of a large peninsula with a distinctive boot shape that extends into the Mediterranean Sea, where together with its two main islands Sicily and Sardinia it creates distinct bodies of water, such as the Adriatic Sea to the north-east, the Ionian Sea to the south-east, the Tyrrhenian Sea to the south-west and finally the Ligurian Sea to the north-west.

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.

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.

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.

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).