Italy
Italy became a nation-state belatedly - in 1861 when the city-states of the peninsula and Sicily were united under King Victor Emmanual. The Fascist dictatorship of Benito Mussolini that took over after World War I led to a disastrous alliance with Nazi Germany and Italian defeat in World War II. Revival followed. The country is known for its precarious political life and has had several dozen governments since the end of World War II.
Italy was a charter member of NATO and the European Economic Community (EEC) and joined the growing political and economic unification of Western Europe, including the introduction of the euro in 1999. Persistent problems include illegal immigration, the ravages of organized crime, high unemployment, and the low incomes and technical standards of southern Italy compared with the more prosperous north. Corruption was drastically highlighted in the 1990s when the "Clean Hands" operation exposed corruption at the highest levels of politics and big business. Several former prime ministers were implicated and thousands of businessmen and politicians were investigated. Later, in the summer of 2003, former Prime Minister Silvio Berlusconi became the first serving Italian prime minister to appear in court at his own trial on charges relating to his business affairs in the 1980s. The trial was halted when parliament approved a controversial law giving serving prime ministers and four other holders of top state posts immunity from prosecution. The Constitutional Court threw this law out some months later and Berlusconi's trial resumed in April 2004. Berlusconi is one of Europe's richest men, controls a vast media holding and has extensive business interests in other areas. He has faced persistent and ongoing corruption allegations but steadfastly denies all wrongdoing.
The Italian economy has been facing increasing difficulties. It has proved difficult to keep the budget deficit down, growth is low, inflation is rising and plans for pension reform and public spending cuts have given rise to protest. There is also concern over the country's birth rate which is the lowest in Europe.
Italy voiced support for Washington and London in the build-up to the US-led campaign in Iraq. There has been mounting public controversy over Italy's continuing deployment there. The subsequent prime minister, Romano Prodi, was a strong opponent of the invasion.
Opposition leader and former prime minister Romano Prodi won closely-fought general elections in April 2006. His broad-based leftist Union bloc gained a wafer-thin majority in the lower house of parliament and won just enough seats to control the Senate, the upper house. Prodi promised to reduce the budget deficit, cut bureaucracy and increase competition. Prodi stepped down in February 2007 after his government lost a Senate vote over its foreign policy - and in particular over Italy's mission in Afghanistan and plans to expand a US airbase in Italy.
There are currently no known threats to expatriate visitors or residents in Italy, a generally safe country to visit and work in.
Nevertheless, small bomb attacks have occurred in Italian cities on a routine basis for the last several years and have accelerated somewhat, in part due to Italy's involvement with the US-led coalition in Iraq, which has drawn the ire of Islamic militants. A number of Islamic extremists have been arrested over the last several years, including two detained in June 2004 who are linked to the February 2004 train bomb attacks in Madrid, Spain.
In addition, there has been a minor resurgence by the Red Brigades. The Red Brigades terrorized Italy in the 1970-80's with attacks on businessmen and government officials.
Red Brigades leaflets were found at two McDonald's restaurants along with small bombs that failed to explode in May 2004. Nearly half a dozen "New Red Brigades" members were arrested in 2004 and a large explosives cache was seized in December 2003.
A spate of parcel bombs mailed to officials in 2004 was attributed to anarchists, inside and outside of Italy. Periodic parcel bomb attacks continued in 2005.
Labor strikes and unrest are regular events in Italy, frequently crippling transportation and public services. The strikes are usually well publicized ahead of the events. According to Italian law, unions cannot plan any strike from December 17 to January 7.
