The Italian State is the result of a unification process that began in 1848 with the Wars of Independence. These drew to a close in 1919, at the end of the Great War, with the annexation of Trentino-Alto Adige/Südtirol (South Tyrol), Trieste and Istria. The peace agreement after the end of the Second World War deprived Italy of Istria and part of Venezia-Giulia. An institutional referendum held on 2 June 1946 put an end to the monarchy and the rule of the House of Savoy.
The Constitution, passed on 27 December 1947, defines the structure and operation of the State, attributing legislative power, together with control of the guidance and activities of the executive, to Parliament. On 29 September, 1999, Italians living abroad gained the right to vote.
Parliament comprises two chambers (the Chamber of Deputies and the Senate of the Republic), both of which are elected directly by universal suffrage for five years. The constitutional referendum was held on 20-21 September 2020, with a majority voting that the number of elective seats in the Chamber of Deputies be reduced from 630 to 400 and in the Senate from 315 to 200, to be enshrined in forthcoming legislation. The President of the Republic, who is “head of state and represents national unity”, is elected by Parliament for five-year terms and may be re-elected. The Government comprises the President of the Council (as the Prime Minister is known), who is appointed by the President of the Republic, and his ministers, who form the Council of Ministers. A new Government must be approved by gaining a majority vote in both Chambers.
The territory of the Italian Republic is divided in terms of administration into regions, metropolitan cities, provinces and municipalities. There are 20 regions, 15 of which are under ordinary statutes and 5 under special statutes (Valle d’Aosta/Vallée d’Aoste, Trentino-Alto Adige/Südtirol, Friuli-Venezia Giulia, Sicily and Sardinia). The provinces and municipalities have administrative and financial autonomy. The provinces of Trento and Bolzano/Bozen also have legislative autonomy. Effective 1 January 2015, 14 “metropolitan cities” were instituted (Rome Capital, Turin, Milan, Venice, Genoa, Bologna, Florence, Bari, Naples, Reggio di Calabria, Palermo, Catania, Messina, Cagliari), which have absorbed the respective provinces, benefitting from special powers and administrative autonomy.

Defence.
Since 2005, when compulsory military service was abolished, the armed forces have been a professional service, and open to men and women. The Italian armed forces comprise the Army, the Navy, the Air Force, the Carabinieri (which absorbed the State Forestry Corps in 2016), and the Financial Guards (reporting to the Ministry of Economy and Finance). The Italian State Police report to the Ministry of the Interior.
As of July 2021, 6582 Italian military were involved in 37 international operations: large contingents of troops operate in Iraq, Kuwait, Lebanon and in the Balkans. The presence in Africa includes contingents in Libya, Niger, Djibouti and Somalia. In the Mediterranean, Italy heads up the new European operation EUNAVFOR Med Irini, aimed at enforcing the arms embargo towards Libya. Another 7800 soldiers have been deployed across Italy as part of the “Strade Sicure” (Secure Streets) operation. The Italian territory is home to several military sites (bases, radar centres, depots and firing grounds) headed up by NATO armed forces or allies (mainly US).

Justice.
The judicial administration is divided into offices of Justices of the Peace, courts and public prosecutors’ offices, juvenile courts, surveillance courts, courts of appeal and Public Prosecutors’ offices at courts of appeal, the Court of Cassation and Public Prosecutor’s offices at the Court of Cassation, and the Higher Court of the Public Waters.

Population by age and gender (% - 2020)
	75+ 60-74 45-59 30-44 15-29 0-14
MALE	AGE	FEMALE

Italy has one of the highest population densities in Europe, but population distribution across the country is uneven on account of environmental factors and the different ways in which towns and cities have developed.
Italy has one of the highest life expectancy rates in the world. For years immigration has been the main factor in population growth. The permanent presence of foreign residents is mainly concentrated in north and central Italy. The largest foreign communities are from Romania, Albania, Morocco, China and Ukraine.

Economic situation.
The Italian economy suffered badly as a result of the SARS-CoV-2 pandemic, shrinking by 8.9% in 2020: a fall that far exceeded the Eurozone average of -6.6%. GDP was driven downward by the three-pronged collapse in family expenditure, gross fixed capital formation, and the exportation of goods and services. The only positive contribution to GDP was the spending made by public administrations, which grew as a result of the support measures introduced to prop up businesses and private citizens hit by the effects of recession. This unenviable economic picture has also affected the employment market, which has half a million fewer jobs than it did prior to the pandemic. That said, unemployment has decreased slightly, nursed by the inactivity rate.
The increase in national debt and the fall of GDP saw the debt-GDP ratio grow to 155.6%, well beyond the EU average. Economic estimates in 2021 have been influenced by the smooth progress in the vaccination campaign and the relaxation of most restrictive measures at the end of spring, both of which have helped the Italian economy regain lost ground. The European Commission predicts a 5% growth in GDP in 2021 and 4.4% in 2022.

Primary sector
Agriculture.
Yields from cereal crops are moderate high, with cereals being grown mainly in the south (durum wheat) and in the Po Valley. About 70% of Italian maize is grown in Piedmont, Lombardy and Veneto. Rice is mainly grown in the provinces of Novara, Vercelli and Pavia. The most important industrial crop is sugar beet (Po Valley).
Tomatoes are mostly cultivated in Campania, Sicily, Apulia and Emilia-Romagna. Other main fruit and vegetables include artichokes, melons, watermelons, onions and cauliflowers. Flower growing is extensive, especially in Liguria and Tuscany. Scattered throughout the peninsula, grapevines enjoy prestige in Piedmont, Veneto and Tuscany. Italy alternates with France for first place in terms of global wine-making and vies with Spain for the production of olive oil (Apulia and Calabria excel in terms of quantity, but Tuscany and Liguria offer the finest of oils). Citrus fruits (oranges and lemons) are grown mainly in Sicily, Calabria and Campania. Apples, pears, peaches, almonds, cherries and plums are grown extensively in some regions.
Livestock and fishing.
Livestock farming is practised mainly in the Po Valley, where beef and dairy cattle predominate, along with poultry and pigs. Derivative products, such as cured meats and cheeses are justly famous.
Apart from in the Adriatic Sea and the Sicilian Channel, fishing in the seas off the Italian coast is somewhat limited. The major fishing-ports are Chioggia, Ancona, San Benedetto del Tronto, Manfredonia, Molfetta, Palermo, Trapani and Mazara del Vallo. The total catch isn’t sufficient to meet the demand of the national market, which is forced to import large amounts. Fish farming has developed considerably, both in freshwater (trout and sturgeon) and at sea (bass, grey mullet and gilthead). The Valli di Comacchio are known for their eels.

Tertiary sector
Foreign trade.
Italy is one of the leading countries in world trade, with 2.9% of the overall export of goods and 2.4% in imports (2020). The main markets for Italian exports are EU countries (especially Germany and France) and the USA. Oil and natural gas, vehicles, machinery, electrical and electronic equipment, chemical and pharmaceutical products come top on the list of imported goods.

Main exports (M US$ - 2017)
machinery 99 475, iron and steel 30 700, electrical and electronic equipment 30 117, pharmaceuticals 25 687, vehicles and parts thereof 25 680, apparel and accessories 21 331, plastics 20 561, cars 18 021, petroleum products 14 973, chemicals 14 144, furniture and accessories 13 655, footwear 11 315, leather goods 9 177, jewels and precious stones 8 423, technical and electro-medical appliances 8 348, glass and ceramic products 8 025, paper and paperboard 7 080, wine 6 762, aluminium 6 401, fruit and vegetables 5 896, cosmetics and perfumes 5 513, pasta and bakery products 5 218, rubber articles 4 856, ships and boats 4 796, aircraft and parts thereof 4 562, raw hides & skins 4 420, spectacles/goggles and the like 4 090

Finance and banking.
In 2020, the banking sector consisted of 59 banking groups and 90 individual banks, in addition to 81 branches of foreign banks. The process of credit union reform concluded in 2019, which led to a rationalization of banking groups. In April 2021, Euronext completed its acquisition of the Milan Stock Exchange (Borsa Italiana) from the London Stock Exchange Group in a deal worth 4.4 billion euros.

Tourism.
Before the pandemic, Italy was ranked among the most preferred tourist destinations in the world, with almost 65 million of international arrivals in 2019. Its famous cities of art (Rome, Venice, Florence, Naples and many other smaller places) are the most popular destinations. Its many other attractions include: the seaside resorts along the Tyrrhenian and Adriatic coasts, ski resorts and summer Alpine walking resorts, its lakes, spas, archaeological sites and nature reserves and parks. Its visitors come mainly from Germany, France, the United Kingdom and the USA. However, the sector was severely hit by the 2020 health crisis, despite the general summer reopening. Italy confirms its leadership as the nation with the greatest number of UNESCO World Heritage Sites (58).

Transport.
The communications network is highly developed, although this is not true for all parts of the country. The railways network has been upgraded quite significantly, though not without problems. The rolling stock is being modernized and a high-speed, high-capacity train network is in the process of being built. On account of the geography of the country, sea transport plays a key role in trade with countries outside Italy.

Media and telecommunication.
In recent years, the telecommunications sector has undergone constant change as a result of the deregulation of the market and the evolution of TC technology, which has enabled major synergies between the telephone infrastructure and computers, causing mobile phone services to be established once and for all as well as Internet access. With the move to digital terrestrial television, the number of channels has increased, but the market stays divided between three groups: two on the terrestrial network (RAI, which is the Italian state television network, and Mediaset, offering additional digital channels for a fee) and one on the satellite network (Sky, for a fee), with other marginal companies.