The Italian Republic or Italy is a southern European country, comprising a boot-shaped peninsula and two large islands in the Mediterranean Sea : Sicily and Sardinia . It shares its nothern alpine boundary with France , Switzerland , Austria and Slovenia . The independent countries of San Marino and the Vatican City are enclaves within Italian territory.

 

 

Geography

Italy consists predominantly of a large peninsula with a distinctive boot shape that extends into the Mediterranean Sea , where together with its two main islands Sicily and Sardinia it creates distinct bodies of water, such as the Adriatic Sea to the north-east, the Ionian Sea to the south-east, the Tyrrhenian Sea to the south-west and finally the Ligurian Sea to the north-west.

The Apennine mountains form the backbone of this peninsula, leading north-west to where they join the Alps , the mountain range that then forms an arc enclosing Italy from the north. Here is also found a large alluvial plain, the Po-Venetian plain , drained by the Po River and its many tributaries flowing down from the Alps, Apennines and Dolomites . Other well-known rivers include the Tiber , Adige and Arno .

Its highest point is Mont Blanc ( Monte Bianco ) at 4,810 m, but Italy is more typically associated with two famous volcanoes : the currently dormant Vesuvius near Naples and the very active Etna on Sicily.

Economy

Italy has a diversified industrial economy with roughly the same total and per capita output as France and the United Kingdom . This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed agricultural south, with 20% unemployment. In comparison to its western European neighbours, it has a high number of small to medium sized enterprises ( SMEes ).

Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Union and has benefited from lower interest and inflation rates. Italy joined the Euro from its conception in 1999 .

Italy's economic performance has at times lagged behind that of its EU partners, and the current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. It has moved slowly, however, on implementing certain structural reforms favored by economists, such as lightening the high tax burden and overhauling Italy's rigid labour market and expensive pension system, because of the current economic slowdown and opposition from labour unions .