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Italy

Introduction to Italy

Italy became a nation-state in 1861 when the city-states of the peninsula, along with Sardinia and Sicily, were united under King Victor EMMANUEL II. An era of parliamentary government came to a close in the early 1920s when Benito MUSSOLINI established a Fascist dictatorship. His disastrous alliance with Nazi Germany led to Italy's defeat in World War II. A democratic republic replaced the monarchy in 1946 and economic revival followed. Italy was a charter member of NATO and the European Economic Community (EEC). It has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999. Persistent problems include illegal immigration, organized crime, corruption, high unemployment, sluggish economic growth, and the low incomes and technical standards of southern Italy compared with the prosperous north.

Government

Capital:

Rome 

Independence:

17 March 1861 (Kingdom of Italy proclaimed; Italy was not finally unified until 1870) 

National holiday:

Republic Day, 2 June (1946) 

Economy

Economy overview:

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed, welfare-dependent agricultural south, with 20% unemployment. 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 Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. 

GDP:

purchasing power parity -$55 trillion (2004 est.)

GDP - composition by sector:

agriculture: 2.2%
industry: 28.9%
services: 68.9% (2004 est.)

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 

Transportation

Waterways:

2,400 km
note: used for commercial traffic; of limited overall value compared to road and rail (2004)

Pipelines:

gas 17,448 km; oil 1,245 km (2003)

Ports and harbors:

Augusta (Sicily), Bagnoli, Bari, Brindisi, Gela, Genoa, La Spezia, Livorno, Milazzo, Naples, Porto Foxi, Porto Torres (Sardinia), Salerno, Savona, Taranto, Trieste, Venice (2001)

Merchant marine:

total: 475 ships (1,000 GRT or over) 8,970,017 GRT/10,354,685 DWT
foreign-owned: Denmark 4, France 3, Greece 5, Japan 1, Isle of Man 1, Monaco 22, Netherlands 4, Panama 2, Switzerland 2, Taiwan 10, United Kingdom 5, United States 13
registered in other countries: 144 (2003 est.)
by type: bulk 39, cargo 40, chemical tanker 106, combination ore/oil 2, container 23, liquefied gas 43, livestock carrier 2, multi-functional large load carrier 1, passenger 13, passenger/cargo 1, petroleum tanker 74, refrigerated cargo 4, roll on/roll off 62, short-sea/passenger 31, specialized tanker 11, vehicle carrier 23

Airports:

134 (2003 est.)

Heliports:

4 (2003 est.)

 

 

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