Country Profile: Italy

— -- In addition to the boot-shaped peninsula that juts into the Mediterranean Sea, Italy comprises the Mediterranean islands of Elba, Sardinia, Sicily and numerous smaller islands.

Italy's mainland peninsula is home to two independent countries — San Marino and Vatican City, the papal seat of the Roman Catholic Church situated in Rome, Italy's capital.

Italy has land frontiers with France in the northwest, Switzerland and Austria in the north and Slovenia in the northeast.

The early history of Italy is largely the history of Rome, with Holy Roman Emperors, and Roman Catholic popes jockeying for control over various regions of the Italian peninsula. Despite the political volatility and social fragmentation that characterized Italy for centuries, the country emerged as the Western world's cultural center from the 13th to the 16th century.

In the 18th and 19th centuries Austria and France alternately were the dominant powers over the fragmented country. It wasn't until 1870 that the peninsular mainland was united as one nation under a constitutional monarchy, with Sardinia's King Victor Emmanuel II elevated to the throne.

Mussolini’s Rise

Italy fought with the Allied forces in World War I, but was left with staggering losses. The resulting social and political unrest that followed the war paved the way for fascist leader Benito Mussolini's rise to power. Backed by conservatives and veterans, Mussolini threatened to take state power by force. King Victor Emmanuel asked Mussolini to form a government. Mussolini did so, but subsequently took control of all state power.

Mussolini's Fascist regime joined with Germany and Adolf Hitler's Nazi forces in World War II. Again, Italy suffered tremendous defeats in battle. Mussolini lost a no-confidence motion in 1943, and was later arrested.

King Victor Emmanuel III abdicated the throne in 1946, following a popular referendum that abolished the monarchy.

Political Instability the Norm

Since its establishment as a republic, Italy has seen little political stability. The country has had 59 governments since World War II. The Christian Democrat Party (DC) was the dominant power in most of the postwar governments. In 1981, Giovanni Spooling of the Republican Party became the first non-Christian Democrat premier since the war.

The mid-1990s saw a major shift in Italian politics, when a campaign to crack down on graft exposed rampant bribery and improprieties in the highest political offices.

Tainted by corruption scandals, the DC fell into disarray and out of power. A right-wing coalition, dubbed the Freedom Alliance, secured a parliamentary majority in 1994. Silvio Berlusconi, a media tycoon, became premier, and his Cabinet included several members of the neo-Fascist National Alliance.

Berlusconi's tenure was short-lived. He was forced to step down in response to allegations of tax evasion, bribing judges and connections to organized crime.