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Demographics

Italy has a population of 59 million people - its most populous city is the capital, Rome, while Lombardy to the northwest is the most populous region. Italy is in the midst of a demographic crisis as its population has not grown naturally since 1993, compensated only by immigration. Despite having a very high life expectancy, Italy also has one of the lowest fertility rates globally, meaning the average age of its population is very high. This has serious consequences for Italy’s economy, as the workforce is shrinking while the aging population is straining the resources of healthcare and elderly care systems, thus increasing the tax burden on younger populations. Recent administrations introduced financial incentives for parents to try and boost fertility, however these have had little impact and Italy’s population is projected to drop further in the coming years, falling to 50 million in the 2050s.

Economy

Italy has the 4th-largest economy in Europe by GDP (third in the EU), and is a leading exporter in industries such as metals, machinery and vehicles, and textiles. The production and export of food and luxury products also contribute greatly to Italy’s GDP while boosting the country’s image abroad. The service sector is the largest in Italy’s economy, with a legacy of banking and financial services that stretches back centuries, alongside a booming tourism and cultural sector.

The modern economy of Italy is rooted in the post-WWII era, where Italy’s economic miracle resulted from its transition from the economy being primarily agricultural to primarily industrial. This saw manufacturing industries boom, especially in the northwest, leading to a wave of rapid urbanization and economic growth that drastically changed Italian society but also increased the economic divide between northern and southern regions. During this time, Italy became a founding member of what later became the European Union, and it has been integral to the development of European integration over the past 75 years.

Politics

Italy is a parliamentary republic, where executive power is held by the Prime Minister and Council of Ministers, legislative power is (primarily) held by the two houses of parliament, and judicial power is held by the High Council of the Judiciary. Italy also has a President as its head of state, who serves a seven-year term as commander-in-chief of the armed forces, while providing checks and balances to the three branches of government. The current government is headed by Giorgia Meloni, Italy’s first female prime minister, and her Brothers of Italy party is the largest in the ruling coalition. This government was elected on a conservative platform that sought to end uncontrolled migration, reduce EU influence, and lower taxes, and it has been described as the most right-wing administration since WWII. While some predicted Italy could shift to the hard-right or become more isolationist, approval ratings were relatively high, while positive international relations were maintained, and notable trade deals were struck in Africa.

Italian politics is infamously volatile, with 68 governments and 31 prime ministers in the past 75 years. Compared to countries such as France or Germany, post-WWII politics in Italy has been much more divisive, with ideologies ranging from neo-fascism to anarchism influencing political discourse in this time. These divisions were most evident during the Years of Lead between the 1960s and 1980s, where politically motivated extremists were responsible for several bombings, attacks, and high-profile assassinations. Corruption is another issue that has plagued Italian politics, especially during the Tangentopoli (“kickbacks”) bribery scandal in the 1990s, which implicated thousands of politicians and businessmen, led to the dissolution of several major parties, and resulted in a complete overhaul of the political system. Euroskeptic and populist parties have risen since 2016, obtaining a solid parliamentary majority after 2022, that has granted Meloni’s cabinet a relative stability, despite the chronical volatility of Italian governments.

Geography and climate

The Italian peninsula has a diverse topography, from the Alps in the north, to the plateau of the Po Valley, and the Apennine mountains that extend along the peninsula and into Sicily, in addition to over 400 islands in the Mediterranean Sea. The Alps form a natural boundary along the north of the country, and Italy shares land borders with France, Switzerland, Austria, and Slovenia, while the Vatican City and San Marino are microstates enclaved entirely within Italy’s borders.

Italy’s location along fault lines where the Eurasian and African plates meet make it one of the most seismically active countries in the world, with several active volcanoes, including Vesuvius and Etna, and frequent earthquakes. Italy has a Mediterranean climate with hot summers and mild winters, although this is undergoing tropicalization due to climate change. Natural disasters resulting from climate change have also intensified in recent years, with rising sea-levels, erosion, and melting glaciers combining to cause flooding and threaten water supplies. Not only do these threaten the populations of affected regions, but also have far-reaching consequences for Italy’s agriculture, export, and tourism industries, with the city of Venice being particularly affected.