Italy

C

Manufacturing

Since World War II, Italian industry has expanded rapidly, and Italian products have gained worldwide popularity. In 1994 the production of the textile industry, one of the largest and most important, included 262,500 tonnes of cotton yarn. Production of the chemical industry, which is also important to the national economy, included sulphuric acid (1.2 million tonnes), caustic soda (953,200), and ammonia (612,000). Among other major industries are the manufacture of motor vehicles, iron and steel, rubber, heavy machinery, electrical ware (particularly household products), and foodstuffs, especially pasta. Production of passenger cars totalled 1.3 million in the 1994. Shipbuilding, the processing of hemp and tobacco, and sugar-refining are also important. Leading manufacturing centres include Genoa, Milan, Rome, and Turin.

D

Energy

Italy is a net energy importer and relies on other countries for much of its gas, coal, and oil. About 82 per cent of Italy’s yearly output of electricity is generated in thermal plants burning petroleum products, natural gas, coal, or lignite, and most of the remainder is produced in hydroelectric facilities. In 1994 Italy had an installed electricity-generating capacity of about 60 million kW; output was some 270 billion kWh in 2003.

E

Currency and Banking

The basic monetary unit was formerly the lira of 100 centesimi, but as part of Italy’s commitment to the European single currency the country adopted Euro notes and coins as from January 1, 2002. As at early 2008, 0.68 Euros equalled US$1. The Bank of Italy (Banca d’Italia) is the bank of issue and exercises control over credit. A public institution, the Bank of Italy has branches in each provincial capital. In addition, Italy has many private banks. The 1990 Banking Act introduced a number of changes in the country’s banking system, reducing public ownership of banks and loosening regulations on external and foreign capital, as part of the European Community’s move towards free capital movement within Europe and currency union. Milan and Rome are major financial centres.

F

Commerce and Trade

Increased trade between Italy and the other member countries of the European Community (now called the European Union) characterized the 1970s and 1980s. The dependence of Italy on imported coal, petroleum, and other essential raw materials usually yields an unfavourable balance of trade. This imbalance is partly offset by the tourist industry, remittances from Italian nationals in foreign lands, and shipping revenues. In 2004 Italian exports earned about US$349 billion per year and imports cost about US$351 billion. Exports include motor vehicles, machinery, vegetables and fruit, wine, chemicals, textiles, and clothing; imports consist mainly of machinery, transport equipment, crude oil, coal, foodstuffs, chemicals, and cotton.

The bulk of Italian export trade is conducted with the countries of the European Union and with the United States, Switzerland, Austria, and countries of the former Soviet Union. Leading sources of Italian imports are Germany, France, the United States, the Netherlands, the Middle East, the United Kingdom, and Switzerland.

Italy has a buoyant tourist industry, drawing on the country’s natural, cultural, and artistic treasures. Tourist arrivals in 2006 totalled 41.1 million. Receipts from tourism in the same period totalled US$38 billion.

G

Labour

The country has a total workforce of approximately 24.8 million (2006). In 1994 about 9 million people belonged to three major trade unions: the Communist-dominated Confederazione Generale Italiana del Lavoro, or CGIL (some 4.6 million members); the centrist Confederazione Italiana Sindacati Lavoratori, or CISL (about 3 million); and the Unione Italiana del Lavoro, or UIL (1.4 million). Union contracts set wages and salaries in every major field.