ITALY- COUNTRY PROFILE

Country Information
Capital: Rome Population: 61,016,804 (est.) Language: Italian, French minority in Val d'Aosta, German minority in Trentino Alto Adige and Albanian minority in Puglia Weights and Metric Measures: Currency: European Euro Time Zone GMT +1

Flag description Three equal vertical bands of green (hoist side), white, and red; design inspired by the French flag brought to Italy by Napoleon in 1797; colors are those of Milan (red and white) combined with the green uniform color of the Milanese civic guard.

Note: similar to the flag of Mexico, which is longer, uses darker shades of red and green, and has its coat of arms centered on the white band; Ireland, which is longer and is green (hoist side), white, and orange; also similar to the flag of the Cote d'Ivoire, which has the colors reversed - orange (hoist side), white, and green.

Italy, united in 1861, has significantly contributed to the cultural and social development of the entire Mediterranean area. Many cultures and civilizations have existed there

since prehistoric times. Culturally and linguistically, the origins of Italian history can be traced back to the 9th century BC, when earliest accounts date the presence of Italic tribes in modern central Italy. Linguistically they are divided into Oscans, Umbrians and Latins. Later the Latin culture became dominant, as Romeemerged as the dominant city around 350 BC. Other pre-Roman civilizations include Magna Graeciain Southern Italy and the earlier Etruscan civilization, which flourished between 900 and 150 BC in the Center North, Po Valley, Latium and Campania.

After the Roman Republic and Empire dominated this part of the world for many centuries, came an Italy whose people would make immeasurable contributions. Some of these contributions led to the development of European philosophy, science, and art during the Middle Ages and the Renaissance.

Dominated by city-states for much of the medieval and Renaissance period, the Italian peninsulaalso experienced several foreign dominations. Parts of Italy were annexed to the Spanish, the Austrian and Napoleon's empire, while the Vatican maintained control over the central part of it, before the Italian Peninsula was eventually liberated and unified amidst much struggle in the 19th and 20th centuries.

In the late-19th century and early 20th century, or the new Kingdom of Italy, the country built acolonial empire, colonizing parts of Africa, and countries along the Mediterranean. Italy suffered enormous losses in World War I but came out on the winning side. The Fascists, led by Benito Mussolini, took over and set up an authoritarian dictatorship 1922-43. Italy was a junior partner ofNazi Germany and Japan in World War II, and after the southern regions had been liberated in 1943 the Fascists fought on until surrendering in 1945 as the "Republic of Sal". Italy was a hard-fought a battlefield 1943-45. In 1946, due to a referendum, the Kingdom of Italy was abolished, and 2 June 1946 saw the birth of the Italian Republic. The 1950s and 1960s in Italy saw a period of rapid modernization and economic growth succeeding the disastrous consequences of World War II, and ever since, Italy has been one of the founding nations, or has joined, several organizations, such as the European Economic Community, which later became the European Union, the United Nations, NATO,UNESCO, the G7, which afterward became the G8, the G20, and the Organization for Economic Co-operation and Development. Italy is currently ranked as a regional power, and Italy has been classified in a study, measuring hard power, as being the 11th greatest worldwide national power.[8]

Italy, slightly larger than Arizona, is a long peninsula shaped like a boot, surrounded on the west by the Tyrrhenian Sea and on the east by the Adriatic. It is bounded by France, Switzerland, Austria, and Slovenia to the north. The Apennine Mountains form the peninsula's backbone; the Alps form its northern boundary. The largest of its many northern lakes is Garda (143 sq mi; 370 sq km); the Po, its principal river, flows from the Alps on Italy's western border and crosses the Lombard plain to the Adriatic Sea. Several islands form part of Italy; the largest are Sicily (9,926 sq mi; 25,708 sq km) and Sardinia (9,301 sq mi; 24,090 sq km).Italy is located in the southern part of Europe. Italy consists of The Po river valley , The Italian Peninsula and Sardinia and Sicily,the two largest islands in the Mediterranean sea comes under

Italy. Po river is the longest river in Italy running for 652km. and forms the largest alluvial plain along its coast,The plain is known as the Padan Plain . Mont blanc with a height of 4810mts., is the highest point in Italy. Italy is also famous for the two volcanoes, Mount Vesuvius near Naples, the dormant volcano and Mount Etna , the active volcano situated in Sicily . Climate of Italy : Italy has a great diversity of climates ranging from the frigid in the higher elevations of the Alps and Apennines, to the semitropical along the coast of the Ligurian Sea and the western coast of the Lower Peninsula. The temperature, however, is balanced the year round and there is not much fluctuation and ranges between 11to 19C (about 52 to 66F). Cool Mediterranean breezes modify extremetemperatures. The northeastern winds blowing on the eastern slopes, however, make those areas very cold during winters. Rainfall mainly occurs during the fall and winter months, when the

westerly winds prevail.

Location of Italy : Italy shares its borders with Switzerland and Austria on the north; Slovenia and the Adriatic Sea on the east; the Ionian Sea and the Mediterranean Sea on the south; the Tyrrhenian Sea, the Ligurian Sea, and the Mediterranean Sea on the west; and France on the northwest. Apart from the mainland, Italy also comprises of the Mediterranean islands of Elba, Sardinia, and Sicily, and many lesser islands. Within mainland Italy lie the independent countries of San Marino and Vatican City.

GOVERNMENT
President: Giorgio Napolitano Giorgio Napolitano, veteran politician, was sworn in as Italy's 11th post-war president in May 2006. The former member of the Italian Communist Party was among the leading architects of the party's transformation into a social-democratic movement. The Italian president heads the armed forces and has powers to veto legislation, disband parliament and call elections. He played a key role in a fierce right-to-die debate in 2009 by refusing to sign an emergency government decree ordering doctors Giorgio Napolitano to resume feeding a woman who had been in a coma for 17 years. Prime minister: Silvio Berlusconi Silvio Berlusconi began his third term as prime minister of Italy in May 2008, heading a centre-right coalition including his own Forza Italia party.

The dominant figure on the right since 1994, when he first moved directly into politics, Mr Berlusconi built a business empire out of construction and media interests in his native Milan. He is one of Italy's wealthiest men, and owns three of the country's seven television channels and several leading newspapers. He also has interests in banking and insurance, and owns the AC Milan football team. Mr Berlusconi launched his political career during the corruption inquiries of 1994, which paralysed the established parties. His brand of populism and can-do image, heavily promoted through his media empire, made his new Forza Italia ("Let's go, Italy!") party the largest in the new parliament, and he headed a fractious right-wing coalition that fell after a few months. He used the period in opposition to reorganise Three-times premier Silvio Forza Italia along more traditional party lines, Berlusconi and won the 2001 elections at the head of a broader centre-right coalition with a Profile: Silvio Berlusconi commitment to simplify the tax system and halve unemployment. Timeline: Berlusconi's political The government was not able to meet its career economic targets, and narrowly lost power in 2006. His business contacts and media role have led to accusations of conflict of interest, especially over legislation seen as protecting his commercial interests. Mr Berlusconi has been put on trial at least six times over financial matters. Although found guilty on three occasions, he was later acquitted or benefited from the expiry of the statute of limitations. His legal troubles took a surprise turn in October 2009 when the constitutional court overturned a law granting him immunity while in office. The ruling meant he could face trial in at least two court cases, including one accusing him of corruption. The law was pushed through by Berlusconi's coalition in 2008 when he faced separate trials in Milan for corruption and tax fraud tied to his Mediaset broadcasting empire. The proceedings against Mr Berlusconi, who denies all charges, were suspended as a result of the law, drawing accusations that it was tailormade for him. The financial crisis of 2008 led to a boost in Mr Berlusconi's popularity ratings. He took steps to inject money into troubled banks and high-profile businesses and his ability to rule by decree when necessary seems to have reassured at least some voters.

In 2009, Mr Berlusconi came under pressure from the centre-left opposition over a series of allegations about his sex life, including allegedly spending a night with an escort and the publication of pictures of topless women at his residence. His coalition lost its majority in the lower house of parliament in August 2010, when more than 30 deputies led by his long-time ally, Gianfranco Fini broke away from his Party of Freedom. Mr Fini had repeatedly voiced concern about the rule of law in Italy. Between August and December, Mr Berlusconi survived four no-confidence votes brought as concerns mounted over scandals in his personal life and the corruption allegations against him. In February 2011, a Milan judge ordered that he should stand trial on 6 April on charges of abuse of power and paying a minor for sex. Mr Berlusconi insists that the case is politically motivated and accuses the Milan prosecutors of pursuing a vendetta against him. Though his governing coalition has been looking increasingly shaky, he has dismissed talk of an early election and insists he will see out his term until elections scheduled for 2013. However, he maintains only a tiny majority in parliament and so his ability to implement any kind of legislative programme is severely restricted.

TRADE The European Union (EU) allows for the free movement of goods between Italy and other member states: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, and United Kingdom. The European Union has numerous bilateral and multilateral agreements, such as the Agreement on Textiles and Clothing (formerly the Multi-Fiber Agreement), PECO countries Agreement, Israel Agreement, Turkey Agreement, Baltic Sea countries Agreement. All these agreements are grouped under the umbrella of the World Trade Organization (WTO), which is the successor to the General Agreement on Tariff and Trade (GATT). The WTO oversees most global trade in goods and services as negotiated in the various agreements, it also provides arbitration in case of disputes. MFN or Most Favored Nation tariff treatment is accorded to all countries that have ratified the WTO, as well as, to other previous GATT members who have yet to ratify the accord. All agreements ratified by European Union Executive Commission automatically apply to all EU member states. The exemption or reduced tariff is applicable only to qualified members under the agreement as originating goods.Under the General Preferential Tariff (GPT) duty-free entry is allowed for

direct importation in all EU member states of eligible goods from the countries listed in the preliminary section of the Customs Tariff. Convention on International Trade in Endangered Species (CITES) of wild fauna and flora provides for the seizure of shipments prohibited under this agreement and the assessment of fines.
The Italian political landscape underwent a seismic shift in the 1990s when the "Clean Hands" operation exposed corruption at the highest levels of politics and big business. Several former prime ministers were implicated and thousands of businessmen and politicians were investigated. Italy was one of the six countries which signed the 1951 Paris Treaty setting Europe off on the path to integration. It has been staunchly at the heart of Europe ever since, although in the early 2000s the government of Silvio Berlusconi adopted a more Eurosceptic stance. Mr Berlusconi sought to align Italy more closely to the US, breaking ranks with the country's traditional allies, France and Germany, in his support for the US-led campaign in Iraq. The Europhile Romano Prodi, who was prime minister from 2006 to 2008, pulled the Italian troops out of Iraq and set about restoring good relations with other EU member states. Italy is the fourth largest European economy and for long enjoyed one of the highest per capita incomes in Europe, despite the decline in traditional industries such as textiles and car manufacturing as a result of globalisation. But it became one of the first eurozone victims of the global financial crisis of 2008. By the summer of 2011, Italy had one of the highest levels of public debt - a towering 120% of GDP Venice: The city built on islets has in the eurozone. been sinking There is concern over Italy's birth rate - the lowest in Europe - and the economic implications of an ageing population. With the population forecast to fall significantly over the next 50 years, the late Pope, John Paul II, instructed Italians to "rediscover the culture of life and love and... their mission as parents".

Overview
Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and mediumsized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 15% of GDP.

These activities are most common within the agriculture, construction, and service sectors. Italy has moved slowly on implementing needed structural reforms, such as reducing graft, overhauling costly entitlement programs, and increasing employment opportunities for young workers, particularly women. The international financial crisis worsened conditions in Italy's labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2010, but in the longer-term Italy's low fertility rate and quota-driven immigration policies will increasingly strain its economy. A rise in exports and investment driven by the global economic recovery nevertheless helped the economy grow by about 1% in 2010 following a 5% contraction in 2009. The Italian government has struggled to limit government spending, but Italy's exceedingly high public debt remains above 115% of GDP, and its fiscal deficit - just 1.5% of GDP in 2007 exceeded 5% in 2009 and 4% in 2010, as the costs of servicing the country's debt rose.

GDP (purchasing power parity)

$1.774 trillion (2010 est.) $1.751 trillion (2009 est.) $1.847 trillion (2008 est.) note: data are in 2010 US dollars
GDP (official exchange rate)

$2.055 trillion (2010 est.)

GDP - real growth rate

1.3% (2010 est.) -5.2% (2009 est.) -1.3% (2008 est.)

GDP - per capita (PPP)

$30,500 (2010 est.) $30,100 (2009 est.) $31,800 (2008 est.) note: data are in 2010 US dollars

GDP - composition by sector

agriculture: 1.9% industry: 25.3% services: 72.8% (2010 est.)

Population below poverty line

NA%
Labor force

24.98 million (2010 est.)

Labor force - by occupation

agriculture: 4.2% industry: 30.7% services: 65.1% (2005)

Unemployment rate

8.4% (2010 est.) 7.8% (2009 est.)

Household income or consumption by percentage share

lowest 10%: 2.3% highest 10%: 26.8% (2000)

Distribution of family income - Gini index

32 (2006) 27.3 (1995)

Investment (gross fixed)

19.4% of GDP (2010 est.)

Budget

revenues: $957.6 billion expenditures: $1.052 trillion (2010 est.)

Taxes and other revenues

46.6% of GDP (2010 est.)

Budget surplus (+) or deficit (-)

-4.6% of GDP (2010 est.)

Public debt

119.1% of GDP (2010 est.) 115.9% of GDP (2009 est.)

Inflation rate (consumer prices)

1.6% (2010 est.) 0.8% (2009 est.)

Central bank discount rate

1.75% (31 December 2010) 1.75% (31 December 2009) note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate

4.025% (31 December 2010 est.) 4.757% (31 December 2009 est.)
Stock of narrow money

$1.223 trillion (31 December 2010 est.) $1.303 trillion (31 December 2009 est.) Note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of

the EMU do not control the quantity of money circulating within their own borders
Stock of broad money

$2.105 trillion (31 December 2010 est.) $1.899 trillion (31 December 2009 est.)
Stock of domestic credit

$3.274 trillion (31 December 2009 est.) $3.047 trillion (31 December 2008 est.)
Market value of publicly traded shares

$317.3 billion (31 December 2009) $520.9 billion (31 December 2008) $1.073 trillion (31 December 2007)
Agriculture - products

fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish
Industries

tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics
Industrial production growth rate

6.5% (2010 est.)

Electricity - production

289.7 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 78.6% hydro: 18.4%

nuclear: 0% other: 3% (2001)

Electricity - consumption

315 billion kWh (2007 est.)

Electricity - exports

3.431 billion kWh (2008 est.)

Electricity - imports

43 billion kWh (2008 est.)

Oil - production

146,500 bbl/day (2009 est.)

Oil - consumption

1.537 million bbl/day (2009 est.)

Oil - exports

586,900 bbl/day (2008 est.)

Oil - imports

1.911 million bbl/day (2008 est.)

Oil - proved reserves

423.7 million bbl (1 January 2010 est.)

Natural gas - production

8.119 billion cu m (2009 est.)

Natural gas - consumption

78.12 billion cu m (2009 est.)

Natural gas - exports

124 million cu m (2009 est.)

Natural gas - imports

69.24 billion cu m (2009 est.)

Natural gas - proved reserves

69.83 billion cu m (1 January 2010 est.)

Current Account Balance

-$67.94 billion (2010 est.) -$42.96 billion (2009 est.)

Exports

$448.4 billion (2010 est.) $407.5 billion (2009 est.)

Exports - commodities

engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals
Exports - partners

Germany 12.6%, France 11.6%, US 5.9%, Spain 5.7%, UK 5.1%, Switzerland 4.7% (2009)
Imports

$473.1 billion (2010 est.) $406 billion (2009 est.)

Imports - commodities

engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco
Imports - partners

Germany 16.7%, France 8.9%, China 6.5%, Netherlands 5.7%, Spain 4.4%, Russia 4.1%, Belgium 4% (2009)
Reserves of foreign exchange and gold

$158.9 billion (31 December 2010 est.) $132.8 billion (31 December 2009 est.)
Debt - external

$2.223 trillion (30 June 2010 est.) $2.328 trillion (31 December 2008)
Stock of direct foreign investment - at home

$403 billion (31 December 2010 est.) $394 billion (31 December 2009 est.)
Stock of direct foreign investment - abroad

$601.4 billion (31 December 2010 est.) $578.1 billion (31 December 2009 est.)
Exchange rates

euros (EUR) per US dollar 0.7715 (2010) 0.7179 (2009) 0.6827 (2008) 0.7345 (2007) 0.7964 (2006)