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EIU Italy

Overview

Romano Prodi's left-of-centre Unione government is fragile and unstable. The Economist Intelligence Unit expects a change of government or an early election by 2009. Under current conditions an election would be won by Silvio Berlusconi's right-of-centre Casa delle Liberta. However, without electoral reform and a major change in the two main coalitions another unstable government is likely. The fiscal deficit is forecast to fall from 4.4% of GDP in 2006 to 2.4% in 2007, but will edge up towards the Stability and Growth Pact's ceiling of 3% in 2008 and 2009, as the government struggles to curb spending and cuts taxes again. GDP growth is forecast to slow from an estimated 1.7% in 2007 to 1.4% in 2008 before picking up slightly in 2009. Inflation will ease slightly from 2.2% in 2006 to about 2% in 2007-09.

Key Reports Available for Italy
  • Country Report
  • Country Profile
  • Country Forecast
  • Country Finance
  • Country Commerce
  • Country Risk Service
  • Basic Data

    Total area
    301,333 sq km (2000 estimate), of which 38% arable and permanent crop, 15% pasture, 21% forests (1999)
    Population
    58.1m (US Census Bureau; end-2007)
    Main towns
    Population in '000s (January 1st 2006)
    Rome (capital; Roma): 2,547
    Milan (Milano): 1,308
    Naples (Napoli): 984
    Turin (Torino): 901
    Palermo: 671
    Genoa (Genova): 620
    Climate
    Mediterranean
    Weather in Rome (altitude 17 metres)
    Hottest month, July, 20-30°C (average daily minimum and maximum); coldest month, January, 4-10°C; wettest month, November, 129 mm average rainfall; driest month, July, 15 mm average rainfall
    Language
    Italian. German is a minority language in Trentino-Alto Adige, French in Valle d'Aosta and Slovenian in Friuli-Venezia Giulia. There are many regional dialects
    Measures
    Metric system
    Currency
    The euro (€). Average exchange rate in 2007: US$1.369:€1
    Exchange rate on September 16th 2008: US$1.427:€1
    Fiscal year
    Calendar year
    Time
    1 hour ahead of GMT in winter, 2 hours ahead in summer
    Public holidays
    January 1st and 6th; Easter Monday; April 25th; May 1st; June 2nd; August 15th; November 1st; December 8th, 25th and 26th
    SOURCE: Country Profile


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