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U.S. Department of State
Background Notes: Italy, July 1995
Bureau of Public Affairs
July 1995
Official Name: Republic of Italy
PROFILE
Geography
Area: 301,225 sq. km. (116,303 sq. mi.); about the size of Georgia
and Florida combined.
Cities: Capital--Rome (pop. 2.7 million). Other cities--Milan,
Naples, Turin.
Terrain: Mostly rugged and mountainous.
Climate: Generally mild Mediterranean; cold northern winters.
People
Nationality: Noun and adjective--Italian(s).
Population: 57 million.
Annual growth rate: 0.2%.
Ethnic groups: Primarily Italian, but small groups of German-,
French-, Slovene-, and Albanian-Italians.
Religion: Roman Catholic (majority).
Language: Italian (official).
Education: Years compulsory--14. Literacy--98%.
Health: Infant mortality rate--8/1,000 live births. Life
expectancy--74 yrs.
Work force: 24 million; unemployment 11%. Services--60%. Industry
and commerce--33%. Agriculture--7%.
Government
Type: Republic since June 2, 1946. Constitution: January 1, 1948.
Branches: Executive--president (chief of state), Council of
Ministers (cabinet), headed by the president of the council (prime
minister). Legislative--bicameral parliament: 630-member Chamber of
Deputies, 326-member Senate. Judicial--independent constitutional
court and lower magistracy.
Subdivisions: 94 provinces, 20 regions.
Political parties: Forza Italia, Northern League, National Alliance,
Democratic Party of the Left, Italian People's Party, Christian
Democratic Center, Socialist,
La Rete, Communist Renewal, Social Democratic, Republican, Liberal,
Greens.
Suffrage: Universal over 18.
Economy
GDP (1994): $1.02 trillion.
Per capita income (1994): $21,300.
GDP growth (1994): 2.2%.
Natural resources: Fish, natural gas.
Agriculture: Products--wheat, rice, grapes, olives, citrus fruits.
Industry: Types--automobiles, machinery, chemicals, textiles, shoes.
Trade (1994): Exports--$189 billion; partners--EU 54%, U.S. 8%, OPEC
4%; mechanical products, textiles and apparel, transportation
equipment, metal products, chemical products, food and agricultural
products, energy products. Imports--$167 billion; partners--EU 56%,
OPEC 5%, U.S. 5%; machinery and transport equipment, foodstuffs,
ferrous and nonferrous metals, wool, cotton, energy products.
PEOPLE AND HISTORY
Italy is largely homogeneous linguistically and religiously but is
diverse culturally, economically, and politically. Italy has the
fifth-highest population density in Europe--about 200 persons per
square kilometer (490/sq. mi.). Minority groups are small, the
largest being the German-speaking people of Bolzano Province and the
Slovenes around Trieste. Other groups comprise small communities of
Albanian, Greek, Ladino, and French origin. Although Roman
Catholicism is the majority religion--99% of the people are nominally
Catholic--all religious faiths are provided equal freedom before the
law by the constitution.
Greeks settled in the southern tip of the Italian peninsula in the
eighth and seventh centuries B.C.; Etruscans, Romans, and others
inhabited the central and northern mainland. The peninsula
subsequently was unified under the Roman Republic. The neighboring
islands also came under Roman control by the third century B.C.; by
the first century A.D., the Roman Empire effectively dominated the
Mediterranean world. After the collapse of the Roman Empire in the
West in the fifth century A.D., the peninsula and islands were
subjected to a series of invasions, and political unity was lost.
Italy became an oft-changing succession of small states,
principalities, and kingdoms which fought among themselves and were
subject to ambitions of foreign powers. Popes of Rome ruled central
Italy; rivalries between the popes and the Holy Roman Emperors, who
claimed Italy as their domain, often made the peninsula a
battleground.
Commercial prosperity of northern and central Italian cities,
beginning in the 11th century, and the influence of the Renaissance
mitigated somewhat the effects of these medieval political rivalries.
Although Italy declined after the 16th century, the Renaissance had
strengthened the idea of a single Italian nationality. By the early
19th century, a nationalist movement developed and led to the
reunification of Italy--except for Rome--in the 1860s. In 1861,
Victor Emmanuel II of the House of Savoy was proclaimed King of
Italy. Rome was incorporated in 1870. From 1870 until 1922, Italy
was a constitutional monarchy with a parliament elected under limited
suffrage.
============================================
Italy's Cultural Contributions
Europe's Renaissance period began in Italy during the 14th and 15th
centuries. Literary achievements--such as the poetry of Petrarch,
Tasso, and Ariosto and the prose of Boccaccio, Machiavelli, and
Castiglione--exerted a tremendous and lasting influence on the
subsequent development of Western civilization, as did the painting,
sculpture, and architecture contributed by giants such as da Vinci,
Raphael, Botticelli, Fra Angelico, and Michelangelo.
The musical influence of Italian composers Monteverdi, Palestrina,
and Vivaldi proved epochal; in the 19th century, Italian romantic
opera flourished under composers Gioacchino Rossini, Giuseppe Verdi,
and Giacomo Puccini. Contemporary Italian artists, writers,
filmmakers, architects, composers, and designers contribute
significantly to Western culture.
============================================
20th-Century History
During World War I, Italy renounced its standing alliance with
Germany and Austria-Hungary and, in 1915, entered the war on the side
of the Allies. Under the postwar settlement, Italy received some
former Austrian territory along the northeast frontier. In 1922,
Benito Mussolini came to power and, over the next few years,
eliminated political parties, curtailed personal liberties, and
installed a fascist dictatorship termed the Corporate State. The
king, with little or no effective power, remained titular head of
state.
Italy allied with Germany and declared war on the United Kingdom and
France in 1940. In 1941, Italy--with the other Axis powers, Germany
and Japan--declared war on the United States and the Soviet Union.
Following the Allied invasion of Sicily in 1943, the King dismissed
Mussolini and appointed Marshal Pietro Badoglio as Premier. The
Badoglio government declared war on Germany, which quickly occupied
most of the country and freed Mussolini, who led a brief-lived regime
in the north. An anti-fascist popular resistance movement grew
during the last two years of the war, harassing German forces before
they were driven out in April 1945. The monarchy was ended by a 1946
plebiscite, and a constituent assembly was elected to draw up plans
for the republic.
Under the 1947 peace treaty, minor adjustments were made in Italy's
frontier with France, the eastern border area was transferred to
Yugoslavia, and the area around the city of Trieste was designated a
free territory. In 1954, the free territory, which had remained
under the administration of U.S.-U.K. forces (Zone A, including the
city of Trieste) and Yugoslav forces (Zone B), was divided between
Italy and Yugoslavia, principally along the zonal boundary. This
arrangement was made permanent by the Italian-Yugoslav Treaty of
Osimo, ratified in 1977 (currently being discussed by Italy,
Slovenia, and Croatia). Under the 1947 peace treaty, Italy also gave
up its overseas territories and certain Mediterranean islands.
The Roman Catholic Church's status in Italy has been determined,
since its temporal powers ended in 1870, by a series of accords with
the Italian Government. Under the Lateran Pacts of 1929, which were
confirmed by the present constitution, the state of Vatican City is
recognized by Italy as an independent, sovereign entity. While
preserving that recognition, in 1984, Italy and the Vatican updated
several provisions of the 1929 accords. Included was the end of
Roman Catholicism as Italy's formal state religion.
GOVERNMENT
Italy has been a democratic republic since June 2, 1946, when the
monarchy was abolished by popular referendum. The constitution was
promulgated on January 1, 1948.
The Italian state is highly centralized. The prefect of each of the
provinces is appointed by and answerable to the central government.
In addition to the provinces, the constitution provides for 20
regions with limited governing powers. Five regions--Sardinia,
Sicily, Trentino-Alto Adige, Valle d'Aosta, and Friuli-Venezia
Giulia--function with special autonomy statutes. The other 15
regions were established in 1970 and vote for regional "councils".
The establishment of regional governments throughout Italy has
brought some decentralization to the national governmental machinery.
The 1948 constitution established a bicameral parliament (Chamber of
Deputies and Senate), a separate judiciary, and an executive branch
composed of a Council of Ministers (cabinet) which is headed by the
president of the council (prime minister). The president of the
republic is elected for seven years by the parliament sitting jointly
with a small number of regional delegates. The president nominates
the prime minister, who chooses the other ministers. The Council of
Ministers--in practice composed mostly of members of parliament--must
retain the confidence of both houses.
The houses of parliament are popularly and directly elected by a
mixed majoritarian and proportional representation system. Under
1993 legislation, Italy has single-member districts for 75% of the
seats in parliament; the remaining 25% of seats are allotted on a
proportional basis. The Chamber of Deputies has 630 members. In
addition to 315 elected members, the Senate includes former
presidents and several other persons appointed for life according to
special constitutional provisions. Both houses are elected for a
maximum of five years, but either may be dissolved before the
expiration of its normal term. Legislative bills may originate in
either house and must be passed by a majority in both.
The Italian judicial system is based on Roman law modified by the
Napoleonic code and subsequent statutes. There is only partial
judicial review of legislation in the American sense. A
constitutional court, which passes on the constitutionality of laws,
is a post-World War II innovation. Its powers, volume, and frequency
of decisions are not as extensive as those of the U.S. Supreme Court.
Principal Government Officials
President--Oscar Luigi Scalfaro
Prime Minister--Lamberto Dini
Foreign Minister--Susanna Agnelli
Ambassador to the United States--Boris Biancheri
Italy maintains an embassy in the United States at 1601 Fuller Street
NW, Washington, DC 20009 (tel. 202-328-5500).
POLITICAL CONDITIONS
There have been frequent government turnovers since 1945. The
dominance of the Christian Democratic (DC) party during much of the
postwar period lent continuity and comparative stability to Italy's
political situation.
From 1992 to 1995, Italy faced significant challenges as voters--
disenchanted with past political paralysis, massive government debt,
extensive corruption, and organized crime's considerable influence--
demanded political, economic, and ethical reforms. In 1993
referendums, voters approved substantial changes, including moving
from a proportional to majoritarian electoral system and the
abolishment of some ministries.
Major political parties, beset by scandal and loss of voter
confidence, underwent far-reaching changes. New political forces and
new alignments of power emerged in March 1994 national elections--
there was a major turnover in the new parliament, with 452 out of 630
deputies and 213 out of 315 senators elected for the first time. The
1994 elections also swept media magnate Silvio Berlusconi--and his
"Freedom Alliance" coalition--into office as Prime Minister.
However, Berlusconi was forced to step down in January 1995 when one
member of his coalition withdrew support.
Italy's current Prime Minister, Lamberto Dini, is a respected
economist who also heads the finance ministry. His government of
technocrats has already implemented much of its ambitious reform
program. Once the reforms are completed, Italy is expected to hold
new national elections.
In April 1995 regional elections, Italians confounded pollsters, who
had predicted a big lead for former Prime Minister Berlusconi's
"Forza Italia" movement. Instead, voters split almost evenly between
center-right and center-left coalitions, making it difficult to
predict the outcome of the next national elections.
Political Parties
Italy's dramatic self-renewal transformed the political landscape
between 1992 and 1995. Scandal investigations touched thousands of
politicians, administrators, and businessmen; the shift from a
proportional to majoritarian voting system (with the requirement to
obtain a minimum of 4% of the national vote to obtain representation)
also altered political ground rules.
Party changes were sweeping. The Christian Democratic party
dissolved; the Italian People's Party and the Christian Democratic
Center emerged. Other major parties, such as the Socialists, saw
support plummet. New movements such as Forza Italia, led by former
Prime Minister Berlusconi, gained wide support. The National
Alliance broke from the neo-fascist Italian Social Movement. A trend
toward two large coalitions--one on the center-left and the other on
the center-right--emerged from the April 1995 regional elections.
Should this trend continue, it would represent a major break from the
fragmented, multi-party political landscape of the Italian postwar
era.
The largest parties in the Chamber are: Forza Italia (21%);
Democratic Party of the Left--moderate successor to the Italian
Communist Party--(20%); National Alliance (14%); Italian People's
Party--primary successor to the DC--(11%); Northern League (8%); and
Communist Renewal--hard-line successor to the Italian Communist
Party--(6%). In the Senate, the largest groups are: Forza Italia-
Northern League (20%); Forza Italia-National Alliance (14%);
Progressive Alliance--PDS and others--(33%); Pact for Italy (17%);
National Alliance (6%).
ECONOMY
The Italian economy has changed dramatically since the end of World
War II. From an agriculturally based economy, it has developed into
an industrial state that ranks as the world's fifth-largest
industrial economy. Italy belongs to the Group of Seven (G-7)
industrialized nations; it is a member of the European Union and the
OECD.
Italy has few natural resources. With much of the land unsuited for
farming, it is a net food importer. There are no substantial
deposits of iron, coal, or oil. Proven natural gas reserves, mainly
in the Po Valley and offshore Adriatic, have grown in recent years
and constitute the country's most important mineral resource. Most
raw materials needed for manufacturing and more than 80% of the
country's energy sources are imported. Italy's economic strength is
in the processing and the manufacturing of goods, primarily in small
and medium-sized family-owned firms. Its major industries are
precision machinery, motor vehicles, chemicals, pharmaceuticals,
electrical goods, and fashion and clothing.
Italy's economic performance improved in 1994 and early 1995. GDP
rose 2.2% in 1994, and for 1995, GDP is forecast to improve by more
than 3%. Italy's 1994 trade surplus was $22 billion, and its current
account surplus was $16 billion. Continued competitive lira exchange
rates should assist further export-led growth. Inflation was 4% in
1994, rising above 5% in early 1995.
In coordination with the EU's planning for an eventual single market,
Italy seeks to align its economic policies with those of the other
major continental economies and to privatize large state-owned
holding companies in a number of sectors. Italy faces several
economic and political hurdles in achieving both goals while
maintaining social cohesion. Moreover, under terms of the Maastricht
Treaty, a convergence target of 3% has been set for public sector
deficit as percentage of GDP--far below Italy's present rate. Also,
Italy's public debt/GDP ratio does not put it realistically within
reach of the treaty' s target of 60%.
Italian Government efforts to reduce the relative sustained size of
the public sector budget deficit have met some success. The public
sector deficit dropped to about 9% of GDP in 1994 and should drop
again to a forecast 8% of GDP in 1995, assuming continued reform.
Italy's government debt was 124% of GDP in 1994. These deficit/GDP
and debt/GDP ratios remain well above the rest of the group of major
industrial economies and complicate efforts to coordinate Italy's
economic policies with those of its major European partners.
Italy's closest trade ties are with the other countries of the
European Union, with whom it conducts about 55% of its total trade.
Italy's largest EU trade partners, in order of market share, are
Germany (19%), France (14%), and the United Kingdom (6%).
U.S.-Italy Economic Relations
The U.S.-Italian bilateral relationship is strong and growing. The
U.S. and Italy cooperate closely on major economic issues, including
within the G-7, which Italy chaired in 1994. With a large population
and a high per capita income, Italy is one of the United States' most
important trading partners. In 1994, the United States was the
fifth-largest single foreign supplier of the Italian market (with a
market share of 5%) and the largest outside the EU. Total trade
between the United States and Italy exceeded $22 billion in 1994; the
U.S. ran more than a $7 billion deficit with Italy.
Significant changes are occurring in the composition of this trade
which could narrow the gap. More value-added products such as office
machinery and aircraft are becoming the principal U.S. exports to
Italy. The change reveals the growing sophistication of the Italian
market, and bilateral trade will expand further. During 1994, the
United States imported about $15 billion in Italian goods while
exporting about $8 billion in U.S. goods to Italy. U.S. foreign
direct investment in Italy exceeds $14 billion; Italian investment in
the U.S. is growing fast.
Labor
A rigid labor market and protective legislation for employed workers
have compounded Italy's major problem of unemployment, which held at
about 11% in 1994--with most job losses occurring in the industrial
sector. For structural economic reasons, unemployment should
continue to be a problem even with economic recovery and modest wage
gains. Although skilled labor is in short supply in some categories,
inefficient use of labor, structural unemployment, and
underemployment persist, as does labor unreported for tax purposes.
Adult and youth unemployment are more acute in southern than in
northern Italy.
Official estimates place the unionization rate of the labor force at
15%; this does not reflect union statistics, since it accounts only
for dues-paying, active workers, omitting retiree/pensioner figures.
Most Italian unions are grouped in three confederations, each of
which has had traditional ties with a particular political party.
With the collapse and near disappearance of the traditional ruling
parties, these informal ties have ended, and the confederations now
emphasize their autonomy from political parties. The three major
confederations are the Italian Confederation of Labor Unions (CISL),
the Italian General Confederation of Labor (CGIL), and the Union of
Italian Labor (UIL). The approximate labor shares for the three
confederations are: CGIL, 42%; CISL, 37%; and UIL, 20%.
Agriculture
Italy's agriculture is typical of the division between the
agricultures of the northern and southern countries of the European
Union. The northern part of Italy produces primarily grains, sugar
beets, soybeans, meat, and dairy products, while the southern section
specializes in producing fruits, vegetables, olive oil, wine, and
durum wheat.
Even though much of its mountainous terrain is unsuitable for
farming, Italy has a large work force (1.6 million) employed in
farming. Most farms are small, with the average farm only seven
hectares.
FOREIGN RELATIONS
Italy was a founding member of the European Community--now the
European Union (EU). Italy was admitted to the United Nations in
1955 and is a member and strong supporter of the North Atlantic
Treaty Organization (NATO); the Organization for Economic Cooperation
and Development (OECD); the General Agreement on Tariffs and
Trade/World Trade Organization (GATT/WTO); the Organization for
Security and Cooperation in Europe (OSCE), the Western European Union
(WEU); and the Council of Europe. It chaired the CSCE and the G-7 in
1994 and will chair the EU in 1996.
Italy firmly supports the United Nations and its international
security activities. Italy actively participated in and deployed
troops in support of UN peacekeeping missions in Somalia,
Mozambique, and Cambodia and provides critical support for NATO and
UN operations in Bosnia.
The Italian Government seeks to obtain consensus with other European
countries on various defense and security issues within the WEU as
well as NATO. European integration and the development of common
defense and security policies will continue to be of primary interest
to Italy.
DEFENSE
A strong NATO ally, Italy occupies an important strategic position in
the Mediterranean, critical to regional security and for enhancing
stability in the Balkans, North Africa, and the Middle East. To meet
challenges of the post-Cold War era, Italy has proposed a "New
Defense Model" that calls for the creation of more mobile and highly
trained units staffed by career professionals. The Italian military
is subordinate to civilian authority, which is vested in the Ministry
of Defense. Under the authority of the Defense Minister, the armed
forces have also been used in Italy for emergency relief and
combating organized crime. For 1995, Italy's defense budget will
equal 1% to 2% of GDP.
U.S.-ITALY RELATIONS
The United States enjoys warm and friendly relations with Italy. The
two are NATO allies and cooperate in the United Nations, in various
regional organizations, and bilaterally for peace, prosperity, and
defense. Italy has worked closely with the United States and others
on such issues as NATO and UN operation in Bosnia; sanctions against
the former Yugoslavia; assistance to Russia and the New Independent
States (NIS); Middle East peace process multilateral talks; Somalia
and Mozambique peacekeeping; and combating drug trafficking and
terrorism.
Under long-standing bilateral agreements flowing from NATO
membership, Italy hosts important U.S. military forces at Vincenza
and Livorno (Army); Aviano (Air Force); and Sigonella, Gaeta, and
Naples--home port for the U.S. Navy Sixth Fleet. The United States
has about 17,000 military personnel stationed in Italy. Italy hosts
the NATO War College in Rome.
Italy remains a strong and active trans-Atlantic partner which, along
with the United States, has sought to foster democratic ideals and
international cooperation in areas of strife and civil conflict.
Toward this end, the Italian Government has cooperated with the U.S.
in the formulation of defense, security, and peacekeeping policies.
Principal U.S. Officials
Ambassador--Reginald Bartholomew
Deputy Chief of Mission--James Creagan
Political Affairs--Shaun Byrnes
Economic Affairs--Robert Smolik
Public Affairs--Cynthia Miller
Commercial Affairs--Keith Bovetti
Agricultural Section--Frank Padovano
Defense Attache--Capt. Philip Bozzelli, USN
Consular Posts
Consul General, Florence--Sue Patterson
Consul General, Milan--George Griffin
Consul General, Naples--Clarke Ellis
The U.S. embassy in Italy is located at Via Veneto 119, Rome (tel.
(39)(6) 46741).
TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program provides
Travel Warnings and Consular Information Sheets. Travel Warnings are
issued when the Department of State recommends that Americans avoid
travel to a certain country. Consular Information Sheets exist for
all countries and include information on immigration practices,
currency regulations, health conditions, areas of instability, crime
and security information, political disturbances, and the addresses
of the U.S. embassies and consulates in the subject country. They can
be obtained by telephone at (202) 647-5225 or by fax at (202) 647-
3000. To access the Consular Affairs Bulletin Board by computer, dial
(202) 647-9225, via a modem with standard settings. Bureau of
Consular Affairs' publications on obtaining passports and planning a
safe trip abroad are available from the Superintendent of Documents,
U.S. Government Printing Office, Washington, D.C. 20402 (202) 783-
3238.
Emergency information concerning Americans traveling abroad may be
obtained from the Office of Overseas Citizens Services at (202) 647-
5225.
While planning a trip, travelers can check the latest information on
health requirements and conditions with the U.S. Centers for Disease
Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-
4559 provides telephonic or fax information on the most recent health
advisories, immunization recommendations or requirements, and advice
on food and drinking water safety for regions and countries. A
booklet entitled Health Information for International Travel (HHS
publication number CDC-94-8280, price $7.00) is available from the
Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402, tel. (202) 512-1800.
Information on travel conditions, visa requirements, currency and
customs regulations, legal holidays, and other items of interest to
travelers also may be obtained before your departure from a country's
embassy and/or consulates in the U.S. (for this country, see
"Principal Government Officials" listing in this publication).
Upon their arrival in a country, U.S. citizens are encouraged to
register with the U.S. embassy (see "Principal U.S. Embassy
Officials" listing in this publication). Such information might
assist family members in making contact en route in case of an
emergency.
Further Electronic Information:
Consular Affairs Bulletin Board (CABB). Available by modem, the CABB
provides Consular Information Sheets, Travel Warnings, and helpful
information for travelers. Access at (202) 647-9225 is free of charge
to anyone with a personal computer, modem, telecommunications
software, and telephone line.
Department of State Foreign Affairs Network. Available on the
Internet, DOSFAN provides timely, global access to official U.S.
foreign policy information. Updated daily, DOSFAN includes Background
Notes; Dispatch, the official weekly magazine of U.S. foreign policy;
daily press briefings; directories of key officers of foreign service
posts; etc. DOSFAN is accessible three ways on the Internet:
Gopher: dosfan.lib.uic.edu
URL: gopher://dosfan.lib.uic.edu/
WWW: http://dosfan.lib.uic.edu/dosfan.html
U.S. Foreign Affairs on CD-ROM (USFAC). Published on a quarterly
basis by the U.S. Department of State, USFAC archives information on
the Department of State Foreign Affairs Network, and includes an
array of official foreign policy information from 1990 to the
present. Priced at $80 ($100 foreign), one-year subscriptions include
four discs (MSDOS and Macintosh compatible) and are available from
the Superintendent of Documents, U.S. Government Printing Office,
P.O. Box 37194, Pittsburgh, PA 15250-7954. To order, call (202) 512-
1800 or fax (202) 512-2250.
Federal Bulletin Board (BBS). A broad range of foreign policy
information also is carried on the BBS, operated by the U.S.
Government Printing Office (GPO). By modem, dial (202) 512-1387. For
general BBS information, call (202) 512-1530.
National Trade Data Bank (NTDB). Operated by the U.S. Department of
Commerce, the NTDB contains a wealth of trade-related information,
including Country Commercial Guides. It is available on the Internet
(gopher. stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at
(202) 482-1986 for more information.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington,
DC -- July 1995 -- Managing Editor: Peter A. Knecht -- Editor:
Marilyn J. Bremner
Department of State Publication 9542 -- Background Notes series --
This material is in the public domain and may be reprinted without
permission; citation of this source is appreciated.
For sale by the Superintendent of Documents, U.S. Government Printing
Office, Washington, DC 20402.
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