(Last updated: 27 Apr 2012)

Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Italy. This is regularly updated, and should be checked before planning travel.

Country facts

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

The immediate impact of the global financial crisis (GFC) on the Italian economy has not been dramatic due largely to Italy’s risk-averse banking system and high household savings combined with low household debt. However, significant structural problems mean that Italy will likely be hard hit by fall in global trade.

Government measures to combat the GFC include:

• financial and taxation support for households and businesses
• car industry financial incentives
• revised infrastructure development plan
• social security safety net
• incentives for building industry

Budget deficit and public debt (balancing the budget) remain Italy’s biggest economic challenges.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

Political climate

Italy is a founding member of the European Union and is a Republic with a written constitution dating to 1948. Legislative power is vested in the bicameral parliament, consisting of the Chamber of Deputies and the Senate. Members of both chambers are elected for five years by universal and direct suffrage. The President of the Republic is elected by a joint session of the Chamber and Senate for seven years. The Prime Minister is appointed by the President and elected by the Parliament.

Trade relations and statistics

Italy is one of the six founding members of the European Union (EU) and one of the 12 Economic and Monetary Union (EMU) countries and as such favours European integration. Italy is also a leading trader (Italian Foreign Trade Ministry), with its eastern neighbours and with the countries of the Mediterranean basin.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.