Background Notes: Italy
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Oct 15, 199010/15/90
Category: Country Data
Region: Europe
Country: Italy
Subject: Cultural Exchange, Resource Management,
Military Affairs, History, International Organizations,
Trade/Economics
[TEXT]
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. 2.8 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 (mid-1989):
57.5 million. Annual growth rate (1988): .2%. Ethnic groups:
Primarily Italian, but small groups of German-, French-, Slovene-,
and Albanian-Italians. Religion: Roman Catholic. Language: Italian.
Education: Years compulsory-8. Literacy-98%. Health: Infant
mortality rate (1987)-9.6/1,000 live births. Life expectancy-73
yrs. Work force (1988, 24 million; employed 21.1 million):
Agriculture-10%. Industry and commerce-32%. Services-58%.
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, 322-member Senate. Judicial-independent constitutional
court and lower magistracy.
Subdivisions: 94 provinces, 20 regions.
Political parties: Christian Democratic, Communist, Socialist,
Italian Social Movement, Social Democratic, Republican, Liberal.
Suffrage: Universal over 18.
Defense (1989*): 2.1% of GDP.
Flag: Three vertical bands-green, white, and red.
Economy
GDP (1989): $865.8 billion. Per capita income (1989):
$15,052. Avg. inflation rate (last 4 yrs.): 5.5%.
Annual GDP growth: 3.2%.
Natural resources: Fish, natural gas.
Agriculture: Products-wheat, rice, grapes, olives, citrus fruits.
Industry: Types-automobiles, machinery, chemicals, textiles, shoes.
Trade (1989): Exports (f.o.b.)-$141.1 billion: machinery and
transport equipment, textiles, foodstuffs, chemicals, footwear.
Imports (c.i.f.)-$153.2 billion: machinery and transport equipment,
foodstuffs, ferrous and nonferrous metals, wool, cotton, petroleum.
Major trade partners (1989)-FRG 19%, France 15%, UK 6%, US 7%,
USSR 2%, OPEC 6%.
Exchange rate (1989 avg.) 1,372 lira=US$1
Membership in International Organizations
UN and some of its specialized and related agencies, NATO,
Organization for Economic Cooperation and Development (OECD),
European Community (EC), Western European Union, Council of
Europe, Conference on Security and Cooperation in Europe (CSCE),
INTELSAT.
PEOPLE AND HISTORY
Italy is linguistically and religiously homogeneous but
culturally, economically, and politically diverse. Political power is
divided among eight or more political parties, ranging from neo-
Fascist to communist.
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 Bolanzo
Province and the Slovenes around Trieste. Other groups comprise
ancient communities of Albanian, Greek, Ladino, and French origin.
Although Roman Catholicism is the official religion-99% of the
people are nominally Catholic-all religious faiths are provided
equal freedom before the law by the constitution.
The period of European culture known as the Renaissance
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; and
painting, sculpture, and architecture under the hands of giants such
as Leonardo da Vinci, Raphael, Botticelli, Fra Angelico, and
Michelangelo exerted a tremendous and lasting influence on the
subsequent development of Western civilization. The musical
influence of Italian composers from Monteverdi, Palestrina, and
Vivaldi proved epochal even before the 19th century, when Italian
romantic opera flourished under composers Gioacchino Rossini,
Guiseppe Verdi, and Giacomo Puccini. Contemporary Italian artists,
writers, filmmakers, architects, composers, and designers make
significant contributions to Western culture.
Modern Italian history dates from 1870, with the unification
of the entire peninsula under King Victor Emmanuel II of the House
of Savoy. From 1870 until 1922, Italy was a constitutional
monarchy with a parliament elected under limited suffrage.
During World War I, Italy denounced its standing alliance with
Germany and Austria-Hungary and in 1915 entered the war on the
side of the Allies. Under the post-war 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 called the Corporate State. The
king, with little or no power, remained titular head of state.
Italy allied with Germany and declared war on the United
Kingdom and France in 1940. In 1941, Italy- together 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. A noteworthy popular resistance movement was
conducted against the remaining Germans, who 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 as a free territory. In 1954, the free territory,
which had remained under the administration of US-UK
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. Under the
1947 peace treaty, Italy also gave up its overseas territories and
certain Mediterranean islands.
The Roman Catholic Church's position in Italy, since its
temporal powers ended in 1870, has been determined by a series of
accords with the Italian government. Under the Lateran Pacts of
1929, which were confirmed by the present constitution, Vatican
City is recognized by Italy as an independent, sovereign state.
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, promulgated January 1, 1948, established a bicameral
parliament (Chamber of Deputies and Senate), a separate judiciary,
and an executive branch composed of a Council of Ministers
(cabinet) and headed by the president of the council (prime
minister). The Council of Ministers-in practice-composed mostly of
members of parliament, must retain the confidence of both houses.
The president of the republic is elected for 7 years by the
parliament sitting jointly with a small number of regional
delegates. The president nominates the prime minister, who
chooses the other ministers.
Except for a few senators, both houses of parliament are
popularly and directly elected by proportional representation. 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 5 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
in 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 US
Supreme Court.
The Italian state is highly centralized in form. The prefect of
each of the 94 provinces is appointed by, and is 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 statutes. The other 15
regions were not established and did not vote for regional "councils"
(parliaments) until 1970. The establishment of regional
governments throughout Italy brought greater decentralization of
the national governmental machinery.
Principal Government Officials
President-Francesco Cossiga
Prime Minister-Giulio Andreotti
Foreign Minister-Gianni De Michelis
Ambassador to the United States-Rinaldo Petrignani
Italy maintains an embassy in the United States at 1601
Fuller Street NW., Washington, DC 20009 (tel. 202-328-5500).
POLITICAL CONDITIONS
Political Parties
Italy has about a dozen political parties, some extremely
small. The following are the most important, in order of their
approximate strength in the Chamber of Deputies deriving from the
last general elections in 1987.
The Christian Democratic Party (DC), descendant of the
Popular Party of the pre-Fascist era, has been the core of all
postwar governments. It represents a wide range of interests and
views, which sometimes make it difficult to reach agreement on
specific issues. The party won 34.3% of the popular vote in 1987.
Party Secretary: Arnaldo Forlani. Official newspaper: Il Popolo.
The Italian Communist Party (PCI), which took 26.6% of the
vote in the 1987 elections, has begun a process leading to the
formation of a new party. The PCI is considering changing its name
to the "Democratic Party of the Left," and its leader has stated that
policy changes also will take place. These changes are in reaction
to the overthrow of communist regimes in Eastern Europe and to the
declining trend in PCI electoral results. Secretary General: Achille
Occhetto. Newspaper: L'Unita.
The Italian Socialist Party (PSI) has moved toward the center
of the Italian political spectrum under the leadership of Party
Secretary Bettino Craxi. It won 14.3% of the 1987 vote. After the
1983 parliamentary elections, Craxi became the first socialist
prime minister in Italy's history, heading a government composed of
Christian Democrats, Republicans, Liberals, and Social Democrats.
Party Secretary: Benedetto (Bettino) Craxi. Newspaper: Avanti!
The Italian Social Movement (MSI), on the right, has older
members imbued with the traditions of fascism. The movement
received 5.9% of the popular vote in 1987. Political Secretary:
Giuseppi Rauti. Newspaper: Il Secolo.
The small Italian Republican Party (PRI) traditionally has
supported republican institutions and polled 3.7% of the vote in
1987. Party Secretary Giovanni Spadolini became the first non-DC
prime minister of the postwar era in June 1981. Party Secretary:
Giorgio La Malfa. Newspaper: La Voce Repubblicana.
The Italian Social Democratic Party (PSDI) polled 3% of the
vote in 1987. Party Secretary: Antonio Cariglia. Newspaper:
Umanita.
The Italian Liberal Party (PLI) reflects classical European
liberalism in the sense of an orientation toward capitalism,
individualism, and free enterprise. The PLI has evolved into a small
but widely respected party of conscience occupying a center-right
niche in the Italian political spectrum. They received 2.9% of the
popular vote in 1983 and 2.1% in 1987. Secretary: Renato Altissimo.
The Radical Party has formally adopted the name "European
Federalists." The party secretaryship is held for a 6-month period
by various members of the party leadership. The party has helped
influence social change in Italy by sponsoring referenda on divorce
and abortion. It garnered 2.6% of the vote in 1987.
The Greens Party entered parliament for the first time in
1987 with 13 deputies and one senator. The party, which
campaigned on an anti-nuclear and environmentalist platform, won
2.5% of the vote. A loosely organized alliance of environmentalist
and peace groups, the Greens have resisted the label of "political
party."
Post-war Conditions
Despite frequent government turnovers, the Italian political
situation has been relatively stable, principally because of the
continuity of the DC as Italy's party of relative majority. Italian
governments have consistently formed around the DC, which since
1945 has governed either in coalition with other parties or alone.
Three DC leaders-the late Premier Alcide de Gasperi, former
Premier Amintore Fanfani, and the late Premier Aldo Moro-
dominated the Italian political scene for most of that
time.
In August 1983, PSI leader Bettino Craxi became prime
minister, remaining in that office for two terms until March 1987.
The first term was longer than that served by any other Italian
prime minister since the war. Early elections were called in June
1987. In these elections the PSI continued to gain ground on the PCI
while the Christian Democrats held at slightly more than one-third
of the total vote. There have been three Christian Democratic-led
government in this, Italy's 10th post-war legislature. The current
Andreotti cabinet took office in July 1989.
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. Italy's economic importance is
clear from its inclusion in the Group of Seven countries. It is a
member of the European Community and the OECD.
Italy has few natural resources. Much of the land is unsuited
for farming; therefore, it is a net food importer. There are no
substantial deposits of iron, coal, or oil. 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, family-owned firms. Its major industries are
precision machinery, motor vehicles, chemicals, pharmaceuticals,
electrical goods, and fashion and clothing.
In 1989, Italy enjoyed another year of economic growth above
3%. This trend should continue into 1990, although growth of
private consumption should slow, in part from government efforts
to ease inflationary pressures.
Inflation was 6% in 1989. The prime reasons for this rise
were increases in taxes and public sector fees connected with the
1989 budget and external developments such as increases in
commodity prices and the appreciation of the dollar. Monetary
pressures and strong domestic demand for goods and services were
additional factors. Wage increases outpaced cost of living
increases.
Continued efforts by the Italian government to reduce the
relative size of the public-sector budget deficit have been
frustrated. The Italian deficit/GDP ratio is well above the rest of
the group of major industrial economies and remains its chief
economic problem. The deficit's size complicates Italy's efforts to
coordinate its economic policies with those of its major European
partners.
As the end 1992 date for the EC's single market plan
approaches, Italy is making an effort not only to align its economic
policies with those of the other major continental economies but
also to implement a series of reforms to enable Italian business to
compete effectively.
Foreign Trade
Italy's closest trade ties are with the other countries
of the European Community. In the 1980s, with the help of lower oil
prices, Italy reduced its trade with the Organization of Petroleum
Exporting Countries' member nations from a peak of 21% of total
imports in 1981 to 6% for 1989.
US-Italy Economic Relations
Italy is the fourth largest trading partner of the United States
in Western Europe. The United States has a significant trade deficit
with Italy, however. The composition of US-Italy trade is
changing; coal was overtaken by office machinery and aircraft as
the principal US export to Italy.
This change reveals the growing sophistication of the Italian
market. The growing trade relationship can be developed further.
Italians are by far Europe's largest savers, and they are now
enjoying their newly acquired wealth. US businesses selling in
Italy should concentrate on high added-value, high-quality products,
which are less vulnerable to exchange rate variations, and ensure a
long-term commitment on the part of the importer. The ongoing
liberalization of exchange controls should allow easier payment
terms for Italian importers.
Labor
A rigid labor market and protective legislation for employed
workers exacerbate unemployment in Italy, which remains its major
problem, particularly among younger workers. 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.
About 28% of the labor force is unionized. The communist-
dominated Italian General Confederation of Labor controls 47% of
organized labor; the Christian Democratic-oriented Italian
Confederation of Workers' Unions, about 35%; and the socialist-
oriented Italian Union of Labor about 18%.
The average unemployment rate in 1989 was 12%, the same as
in 1988. Unemployment in the north was about 6%; in the center,
about 10%; and in the south, about 20%. In addition, persons under
30 accounted for 70% of the unemployed.
Agriculture Italy's agriculture is typical of the division between
the agricultures of the northern and southern countries of the
European Community. 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 (2.1 million) employed in
farming. Most farms are small, with the average farm only 7
hectares.
Houston Economic Summit, July 9-11, 1990
President Bush hosted the 16th annual G-7 summit for the leaders
of the major industrialized democracies-Canada, the Federal
Republic of Germany, France, Italy, Japan, the United Kingdom, and
the United States-and the president of the European Community, in
Houston, Texas, July 9-11.
The summit was held against the backdrop of movement
toward democracy and freer markets in many parts of the world,
including elections in Eastern Europe and Nicaragua, increasing
momentum toward German unification, and political reforms in the
Soviet Union. The summit leaders agreed on most international
economic and political issues, but intense discussions were needed
on agricultural subsidies in the Uruguay Round of multilateral trade
negotiations, economic assistance to the Soviet Union, and global
warming before consensus could be reached.
Economic Accomplishments
-- Agreement on progressive reductions in internal and
external support and protection of agriculture and on a framework
for conducting agricultural negotiations in order to successfully
conclude by December 1990 the Uruguay Round of multilateral trade
talks under the auspices of the General Agreement on Tariffs and
Trade (GATT).
-- Request to the International Monetary Fund (IMF), the World
Bank, the Organization for Economic Cooperation and Development,
and the European Bank for Reconstruction and Development to
undertake, in close coordination with the European Community (EC),
a study of the Soviet economy, to make recommendations, to
establish the criteria under which Western economic assistance
could effectively support Soviet reforms, and to submit a report by
the end of 1990.
-- Support for aid to Central and Eastern European nations
that are firmly committed to political and economic reform,
including freer markets, and encouragement of foreign private
investment in those countries and improved markets for their
exports by means of trade and investment agreements.
-- Pledge to begin negotiations, to be completed by 1992, on a
global forest convention to protect the world's forests.
Political Accomplishments
-- Promotion of democracy throughout the world by assisting
in the drafting of laws, advising in fostering independent media,
establishing training programs, and expanding exchange programs.
-- Endorsement of the maintenance of an effective
international nuclear nonproliferation system, including adoption of
safeguards and nuclear export control measures, and support for a
complete ban on chemical weapons.
FOREIGN RELATIONS
Italy has achieved its basic postwar objective of equality and
partnership in the community of democratic nations. It was
admitted to the United Nations in 1955. It is a member and strong
supporter of the North Atlantic Treaty Organization (NATO), the
OECD, the General Agreement on Tariffs and Trade (GATT),
Conference on Security and Cooperation in Europe (CSCE), and the EC.
Italy also is active in the Western European Union and the Council of
Europe.
DEFENSE
A staunch NATO ally, Italy occupies an important strategic
position in the Mediterranean, guarding the southern flank of Europe
and serving as a bridge to North Africa and the Middle East. Recent
Italian governments have taken a leading role among the allies on
such important defense initiatives as the deployment of
intermediate-range nuclear forces. They also have recognized the
need to enhance Italy's military posture and have taken significant
steps in that direction.
US-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 recently has shown a willingness to
work closely with the United States and others on issues beyond
NATO's traditional area of responsibility, such as participating in
Middle East peacekeeping and in combating terrorism.
Principal US Officials
Ambassador-Peter F. Secchia
Deputy Chief of Mission-Daniel P. Serwer
Political Affairs-John S. Brims
Economic Affairs-Kevin McGuire
Public Affairs--Jodie Lewinsohn
Commercial Affairs-Emilio Iodice
Agricultural Attache-Frank Piason
Treasury Attache-Llewellyn Pascoe
Defense Attache-Capt. James Chandler, USN
Consular Posts
Consul General, Florence-Marisa R. Lino
Consul General, Genoa-Anthony Leggio
Consul General, Milan-Peter Semler
Consul General, Naples-Emil P. Ericksen
Consul General, Palermo-Luciano Mangiafico
The US Embassy in Italy is located at Via Veneto 119, Rome (tel.
(39)(6) 46741).
FURTHER INFORMATION
Available from the Superintendent of Documents, US Government
Printing Office, Washington, DC 20402:
American University. Area Handbook for Italy. 1987.
US Department of Commerce."Italy." Foreign Economic Trends
and Their Implications for the United States. Semiannual..
"Marketing in Italy."
Overseas Business Reports. Periodical.
TRAVEL NOTES
Clothing: Woolens and sweaters are practical most of the
year; cottons are recommended for the hot summers. Currency:
Nonresidents can leave the country with only 1 million lire and 5
million lire worth of other currencies. Larger amounts may be
exported as long as they have been declared upon entering the
country.
Health: Medical facilities are available in cities. No special
immunizations are necessary. Tapwater is safe. Meat, fruit,
vegetables, and shellfish should be well-prepared.
Telecommunications:
Telephone and telegraph connections within Italy and to
international points are good. Rome is six standard time zones
ahead of eastern standard time.
Transportation: Many major international airlines have service
to Rome and Milan. There is daily jet service to the United States.
Public transportation is modern, efficient, and reasonably priced.
Metered taxis are inexpensive and usually available at stands. No
Italian visa is required of American citizens visiting Italy
temporarily for tourism or business trips. Persons planning to
travel to Italy for work or other purposes should inquire about their
visa status in advance at an Italian embassy or consulate.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington,
DC -- October 1990 -- Editor: Juanita Adams Department of State
Publication 9542 Background Notes Series -- This material is in
the public domain and may be reproduced without permission;
citation of this source is appreciated. For sale by the
Superintendent of Documents, US Government Printing Office,
Washington, DC 20402(###)