Top Italy Resources

In the final phases of the Second World War, the discredited king Victor Emmanuel III tried to raise the prestige of the monarchy by nominating his son and heir Umberto II "general lieutenant of the kingdom" and promising that after the end of the war the Italian people could choose its form of government through a referendum. A new constitution was written for the new republic, taking effect on January 1, 1948. The referendum at the origin of the Italian republic was, however, the object of deep discussion, mainly because of some contested results.

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.

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.

Under longstanding bilateral agreements flowing from NATO membership, Italy hosts important U.S. military forces at Vicenza and Livorno (army); Aviano (air force); and Sigonella, Naples, and Gaeta – home port for the U.S. Navy Sixth Fleet. The United States has about 16,000 military personnel stationed in Italy. Italy hosts the NATO War College in Rome.

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.

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.

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.