Wayzata World Factbook 1994/World Factbook - 1994 Edition - Wayzata Technology (1994).iso/pc/text/txtfiles/italy.bkg

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#CARD:Italy:Background Notes
US DEPARTMENT OF STATE BACKGROUND NOTES:  ITALY

October 1990
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. [phone]).

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.

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.

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 recommend- ations, 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.

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(###)


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