National name: Repubblica Italiana

Languages: Italian (official); German-, French-, and Slovene-speaking minorities

Ethnicity/race: Italian (includes small clusters of German-, French-, and Slovene-Italians in the north and Albanian- and Greek-Italians in the south)

Religions: Roman Catholic approx. 90%, Protestant, Jewish, Islamic

National Holiday: Republic Day, June 2

Literacy rate: 99% (2003 est.)

Economic summary: GDP/PPP (2009 est.): $1.76 trillion; per capita $30,300. Real growth rate: –4.8%. Inflation: 0.6%. Unemployment: 7.5%. Arable land: 26%. Agriculture: fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish. Labor force: 24.86 million; services 63%, industry 32%, agriculture 5% (2001). Industries: tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics. Natural resources: coal, mercury, zinc, potash, marble, barite, asbestos, pumice, fluorospar, feldspar, pyrite (sulfur), natural gas and crude oil reserves, fish, arable land. Exports: $369 billion (2009 est.): engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals. Imports: $358.7 billion (2009 est.): engineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco. Major trading partners: Germany, France, U.S., Spain, UK, Switzerland, Netherlands, Belgium, China (2006).

Communications: Telephones: main lines in use: 25.049 million (2005); mobile cellular: 71.5 million (2005). Radio broadcast stations: AM about 100, FM about 4,600, shortwave 9 (1998). Television broadcast stations: 358 (plus 4,728 repeaters) (1995). . Internet hosts: 4.117 million (2007). Internet users: 28.855 million (2006).

Transportation: Railways: total: 19,460 km (2006). Highways: total: 484,688 km; paved: 479,688 km (including 6,621 km of expressways); unpaved: 0 km (2004). Waterways: 2,400 km; note: used for commercial traffic; of limited overall value compared to road and rail (2004). Ports and harbors: Augusta, Genoa, Livorno, Melilli Oil Terminal, Ravenna, Taranto, Trieste, Venice. Airports: 132 (2007).

International disputes: Italy’s long coastline and developed economy entices tens of thousands of illegal immigrants from southeastern Europe and northern Africa.

Italy Becomes a Unified Peninsula

In 1713, after the War of the Spanish Succession, Milan, Naples, and Sardinia were handed over to the Hapsburgs of Austria, which lost some of its Italian territories in 1735. After 1800, Italy was unified by Napoléon, who crowned himself king of Italy in 1805; but with the Congress of Vienna in 1815, Austria once again became the dominant power in a disunited Italy. Austrian armies crushed Italian uprisings in 1820–1821 and 1831. In the 1830s, Giuseppe Mazzini, a brilliant liberal nationalist, organized the Risorgimento (Resurrection), which laid the foundation for Italian unity. Disappointed Italian patriots looked to the House of Savoy for leadership. Count Camille di Cavour (1810–1861), prime minister of Sardinia in 1852 and the architect of a united Italy, joined England and France in the Crimean War (1853–1856), and in 1859 helped France in a war against Austria, thereby obtaining Lombardy. By plebiscite in 1860, Modena, Parma, Tuscany, and the Romagna voted to join Sardinia. In 1860, Giuseppe Garibaldi conquered Sicily and Naples and turned them over to Sardinia. Victor Emmanuel II, king of Sardinia, was proclaimed king of Italy in 1861. The annexation of Venetia in 1866 and of papal Rome in 1870 marked the complete unification of peninsular Italy into one nation under a constitutional monarchy.

The Rise and Fall of Mussolini

Italy declared its neutrality upon the outbreak of World War I on the grounds that Germany had embarked upon an offensive war. In 1915, Italy entered the war on the side of the Allies but obtained less territory than it expected in the postwar settlement. Benito (“Il Duce”) Mussolini, a former Socialist, organized discontented Italians in 1919 into the Fascist Party to “rescue Italy from Bolshevism.” He led his Black Shirts in a march on Rome and, on Oct. 28, 1922, became prime minister. He transformed Italy into a dictatorship, embarking on an expansionist foreign policy with the invasion and annexation of Ethiopia in 1935 and allying himself with Adolf Hitler in the Rome-Berlin Axis in 1936. When the Allies invaded Italy in 1943, Mussolini’s dictatorship collapsed; he was executed by partisans on April 28, 1945, at Dongo on Lake Como. Following the armistice with the Allies (Sept. 3, 1943), Italy joined the war against Germany as a cobelligerent. A June 1946 plebiscite rejected monarchy and a republic was proclaimed. The peace treaty of Sept. 15, 1947, required Italian renunciation of all claims in Ethiopia and Greece and the cession of the Dodecanese islands to Greece and of five small Alpine areas to France. The Trieste area west of the new Yugoslav territory was made a free territory (until 1954, when the city and a 90-square-mile zone were transferred to Italy and the rest to Yugoslavia).

Italy Moves to Stabilize Its Economy

Italy became an integral member of NATO and the European Economic Community (later the EU) as it successfully rebuilt its postwar economy. A prolonged outbreak of terrorist activities by the left-wing Red Brigades threatened domestic stability in the 1970s, but by the early 1980s the terrorist groups had been suppressed. “Revolving door” governments, political instability, scandal, and corruption characterized Italian politics in the 1980s and 1990s.

Italy adopted the euro as its currency in Jan. 1999. Treasury Secretary Carlo Ciampi, who is credited with the economic reforms that permitted Italy to enter the European Monetary Union, was elected president in May 1999. Italy joined its NATO partners in the Kosovo crisis. Aviano Air Base in northern Italy was a crucial base for launching air strikes into Kosovo and Yugoslavia.

Berlusconi Proves to Be Resilient and Persistent

In June 2001, Silvio Berlusconi, a conservative billionaire, was sworn in as prime minister. He pledged to reduce unemployment, cut taxes, revamp the educational system, and reform the bureaucracy. His critics were alarmed by the apparent conflict of interest of a prime minister who also owned 90% of Italy’s media. He was accused of Mafia connections and was under indictment for tax fraud and bribery. Found guilty in three out of four of his trials, he was acquitted in all of them on appeal. Several other cases are pending.

In April 2005, regional elections had disastrous results for Berlusconi’s center-right coalition. The dismal state of the economy was blamed for the poor showing. In parliamentary elections held April 2006, the center-left Union coalition led by Romano Prodi won 49.8% of the vote and Berlusconi’s House of Liberties coalition won 49.7%—a mere 25,000 vote difference. Berlusconi refused to concede and called for a recount. He eventually relented, and Prodi was given the go-ahead by the newly installed president Giorgio Napolitano to form a government. Prodi served as prime minister once before (1996–98) and also as president of the European Union. Prodi’s government proved fragile almost immediately. Indeed, he submitted his resignation in Feb. 2007, just nine months into his term, after a key foreign-policy vote about the deployment of troops to Afghanistan and an expansion of a U. S. military base failed in the Senate. Days later, the Senate, facing the prospect of Silvio Berlusconi returning to power, narrowly passed a vote of confidence in Prodi’s government and he remained in office. Less than a year later, in Jan. 2008, the Udeur party bolted from his coalition, costing Prodi his majority in the senate. He survived a no-confidence vote in the lower house of Parliament, but lost in the Senate, 161 to 156, forcing his government to resign. Parliament was dissolved, and elections were set for April. Berlusconi saw the crisis as an opportunity for a political comeback. On April 15, 2008, with support from the Northern League, Berlusconi and his center-right government won the elections, ensuring him a third term as prime minister.

On May 8, 2008, Berlusconi was sworn in for his third term as prime minister and announced his cabinet, which remains dominated by center-right politicians and includes few women.

On July 23, 2008, the Senate and lower chamber approved a bill that grants immunity to the four most powerful elected officials while they are in office, including the prime minister, the president, and the speakers of the two chambers of Parliament.

Italy Faces Challenges and Berlusconi Faces Charges

After two consecutive quarters of negative growth, Italy was declared officially in recession in November 2008.

An earthquake of magnitude 6.3 hit central Italy in April 2009. At least 275 people were killed and 28,000 were left homeless. The town of L’Aquila was the epicenter of the earthquake, but as many as 26 towns were affected.

Silvio Berlusconi’s coalition lost its majority in August 2010 amid a row with Gianfranco Fini, the leader of the Party of Freedom. Tension between the former allies had been escalating and culminated when Fini and more than 30 deputies broke with the party to form a “party within a party.” The split led to a vote of confidence in December 2010, which Berlusconi barely survived.

In January 2011, Italy’s Constitutional Court partially lifted Berlusconi’s immunity. The ruling reactivated three trials against him, including one in which David Mills, his former tax lawyer, was convicted of taking a bribe in exchange for false testimony. In February 2011, prosecutors in Milan filed criminal charges against Berlusconi. The charges were for prostitution and abuse of office. Prosecutors say that Berlusconi paid Karima el-Mahroug for sex before she turned 18. Mahroug, a nightclub dancer nicknamed Ruby Heart-Stealer, claims that she did not have sex with the prime minister. She does say that he paid her 7,000 Euros when she attended a party at his villa for the first time in the spring of 2010. Berlusconi vowed to continue governing and to fight the charges. On Feb. 13, 2011, thousands of protestors poured into the streets in Italian cities as well as other cities worldwide to demonstrate against Berlusconi’s treatment of women, his latest sex scandal, and his habit of putting television showgirls in political office.

In May 2011, the Berlusconi-backed incumbent candidate for mayor of Milan, Letizia Moratti, was defeated. Berlusconi had said he considered the election a test of his standing and popularity in his hometown. He has a history of becoming personally involved in local elections and the loss of a candidate he publicly campaigned for was a clear sign of his fading influence. Giuliano Pisapia, a center-left candidate, beat Ms. Moratti by more than six points.