Italy vs. Austria

Italy became a nation-state in 1861 when the regional states of the peninsula, along with Sardinia and Sicily, were united under King Victor EMMANUEL II. An era of parliamentary government came to a close in the early 1920s when Benito MUSSOLINI established a Fascist dictatorship. His alliance with Nazi Germany led to Italy's defeat in World War II. A democratic republic replaced the monarchy in 1946 and economic revival followed. Italy is a charter member of NATO and the European Economic Community (EEC) and its subsequent successors the EC and the EU. It has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999. Persistent problems include sluggish economic growth, high youth and female unemployment, organized crime, corruption, and economic disparities between southern Italy and the more prosperous north.

regional risks include landslides, mudflows, avalanches, earthquakes, volcanic eruptions, flooding; land subsidence in Venice

volcanism: significant volcanic activity; Etna (3,330 m), which is in eruption as of 2010, is Europe's most active volcano; flank eruptions pose a threat to nearby Sicilian villages; Etna, along with the famous Vesuvius, which remains a threat to the millions of nearby residents in the Bay of Naples area, have both been deemed Decade Volcanoes by the International Association of Volcanology and Chemistry of the Earth's Interior, worthy of study due to their explosive history and close proximity to human populations; Stromboli, on its namesake island, has also been continuously active with moderate volcanic activity; other historically active volcanoes include Campi Flegrei, Ischia, Larderello, Pantelleria, Vulcano, and Vulsini

15 regions (regioni, singular - regione) and 5 autonomous regions (regioni autonome, singular - regione autonoma)

regions: Abruzzo, Basilicata, Calabria, Campania, Emilia-Romagna, Lazio (Latium), Liguria, Lombardia, Marche, Molise, Piemonte (Piedmont), Puglia (Apulia), Toscana (Tuscany), Umbria, Veneto;

autonomous regions: Friuli Venezia Giulia, Sardegna (Sardinia), Sicilia (Sicily), Trentino-Alto Adige (Trentino-South Tyrol) or Trentino-Suedtirol (German), Valle d'Aosta (Aosta Valley) or Vallee d'Aoste (French)

Governing Coalition:
Five Star Movement or M5S [Vito CRIMI, acting leader]
League or Lega [Matteo SALVINI]

Left-center-right opposition:
Democratic Party or PD [Enrico LETTA]
Forza Italia or FI [Silvio BERLUSCONI]
Brothers of Italy [Giorgia MELONI]
Free and Equal (Liberi e Uguali) or LeU [Pietro GRASSO]
More Europe or +EU [Emma BONINO]
Popular Civic List or CP [Beatrice LORENZIN]

Other parties and parliamentary groups:
Possible [Beatrice BRIGNONE]
Us with Italy [Raffaele FITTO]
South Tyrolean People's Party or SVP [Philipp ACHAMMER]
Trentino Tyrolean Autonomist Party (Partito Autonomista Trentino Tirolese) or PATT [Franco PANIZZA, secretary]
Article One or Art.1-MDP [Roberto SPERANZA]

Italy's economy comprises a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, with a legacy of unemployment and underdevelopment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors.

Italy is the third-largest economy in the euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 131% of GDP in 2017. Investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's longstanding structural economic problems, including labor market inefficiencies, a sluggish judicial system, and a weak banking sector. Italy's economy returned to modest growth in late 2014 for the first time since 2011. In 2015-16, Italy's economy grew at about 1% each year, and in 2017 growth accelerated to 1.5% of GDP. In 2017, overall unemployment was 11.4%, but youth unemployment remained high at 37.1%. GDP growth is projected to slow slightly in 2018.

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany's, but also the US', its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austrian economic growth strengthen in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria's unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.

Austria's fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.

Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.

well-developed, fully automated telephone, and data services; among highest mobile penetration rates in Europe; benefitted from progressive government programs aimed at developing fiber in broadband sector; leading edge of development with 5G in six cities; fiber network reaches more than half of population; Milan developing smart city technology; importer of broadcasting equipment and computers from China (2021)

mature telecom market benefitting from effective competition; government and regulator are focused on improving telecom infrastructure; program to provide a national gigabit service by 2030 based on 5G networks; fixed-line broadband market is dominated by DSL sector, while cable broadband enjoys steady share of connections; fiber penetration remains low pending build out network infrastructure; EU-funded projects develop infrastructure to enable an 'Internet of Services; Vienna is a smart city; importer of broadcasting equipment from Vietnam and China (2021)

Italy's long coastline and developed economy entices tens of thousands of illegal immigrants from southeastern Europe and northern Africa

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