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The Church (and especially the bishop of Rome, the pope) had played an important political role since the times of Constantine, who tried to include it in the imperial administration.

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.

Although Roman Catholicism is the majority religion — 85% of native-born citizens are nominally Catholic — there are mature Protestant and Jewish communities and a growing Muslim (see: Islam in Italy) immigrant community. All religious faiths are provided equal freedom before the law by the constitution.

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.

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.

At the beginning of World War II Italy remained neutral (with the consent of Hitler), but it declared war on France and Britain on June 10, 1940, when the French defeat was apparent. Mussolini believed that Britain would beg for peace, and wanted "some casualties in order to get a seat at the peace table", but that proved a huge miscalculation. With the exception of the navy, the Italian armed forces were a major disappointment for Mussolini and Hitler, and German help was constantly needed in Greece and North Africa.

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.

As Germany annexed Austria and moved against Czechoslovakia, Italy saw itself becoming a second-rate member of the Axis. The imminent birth of an Albanian royal child meanwhile threatened to give Zog a lasting dynasty. After Hitler invaded Czechoslovakia (March 15, 1939) without notifying Mussolini in advance, the Italian dictator decided to proceed with his own annexation of Albania. Italy's King Victor Emmanuel III criticized the plan to take Albania as an unnecessary risk.

The birth of the Italian republic (officially on June 2, 1946) is a key event of Italian contemporary history. It is controversial because of suspicions of fraud that were advanced by monarchists). Until 1946, Italy was a monarchy ruled by the House of Savoy (kings of Italy and, previously, of Sardinia). In 1946, after the results of a popular referendum, it became a republic. A Constituent assembly was elected at the same time to prepare a new constitution for the Republic. This article is about the Referendum on the form of State.

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.

In 1929 Mussolini signed the Lateran Pacts with the Catholic Church (with whom Italy was in conflict since the annexation of Rome in 1870), leading to the formation of the tiny independent state of Vatican City. He was initially in friendly terms with France and Britain, but the situation changed in 1935-36, when Italy invaded Ethiopia despite their opposition (Second Italo-Abyssinian War); because of this and of the ideological affinities with the Nazi party led by Hitler,

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.

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.

Italy is well-known for its art, culture, and several monuments, among them the leaning tower of Pisa and the Roman Colosseum, as well as for its food (pizza, pasta, etc.), wine, lifestyle, elegance, design, cinema, theatre, literature, poetry, visual arts, music (notably Opera), holidays, and generally speaking, for taste.

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.