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Profile
 The
end of the Second World War brought two decades of Fascism to an
end in Italy. In 1946 the Monarchy was abolished and in 1948 a new
constitution was drawn up. Since then Italy has change governments
some fifty time in less than five decades. The dominant party in
post-war governments has been the Christian Democracies, but the
constant struggles for political power in Italy have encouraged
an extensive system of patronage within the parties. After the Second
World War Italy developed its economy so rapidly that people referred
to the "miracle" years of development during the 1950's and 1960's.
One of the basic powerful motors of their miraculous development
was the change made to the educational system, which was made universally
accessible to everyone at a very high standard. So successful was
this impulse that despite political instability, and plagued with
economic inflation, the GDP advanced to where it, in 1987, surpassed
that of Great Britain making Italy the third richest country in
Europe.
Italy has a strong economy but it also has a massive public debt
caused by chronic budget deficits and the need to import a high
proportion of energy and raw material. The debt was so serious that
in 1987-90 public debt was more than the total annual GDP and the
public sector borrowing requirement were 11-12% of GDP. Reducing
existing debt and future borrowings and cubing the budget deficit
remained Italy's main priorities and it is now being assisted with
these endeavors by membership in the European Monetary Union with
the adoption of the Euro as their national currency.
Although the last few years have seen a limited program of privatizations
the state through a series of holding companies has much influence
and even control in the business of Italy. The distribution of state
sector jobs to political appointees is a well-rooted feature of
Italian life.
Italy has only been politically united since 1870 and regional differences
remain substantial. In the industrialized north employment is much
lower and average incomes are much higher than in the Mezzogiorno
south, which is more dependent on agriculture. Italy traditionally
is one of the enthusiastic members of the European Union being one
of the original six members and a supporter of closer integration.
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