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Italy is one of the founding members of the European Union, with Rome as its capital and Italian as its official EU language. It has been part of the European project since 1 January 1958 and adopted the euro in 1999 as a founding member of the euro area. Italy joined the Schengen area in 1997, allowing for free movement across participating European countries. In terms of geographic size, population, and GDP per capita measured in purchasing power standards, Italy remains one of the EU’s largest and most economically significant member states.
Italy is governed as a parliamentary republic. Executive power is exercised by the government, led by a prime minister appointed by the president, who serves as head of state with largely representative functions. Legislative authority is vested in a bicameral parliament consisting of the Chamber of Deputies and the Senate of the Republic. Administratively, the country is divided into 20 regions, five of which enjoy a special autonomous status that grants them extended legislative powers in specific policy areas, reflecting Italy’s regional diversity.
Italy’s economy is broad-based and strongly rooted in services and industry. In 2020, wholesale and retail trade, transport, accommodation, and food services represented the largest share of economic activity, followed closely by industrial production. Public administration, defence, education, healthcare, and social services also accounted for a significant portion of economic output. Italy’s trade is closely integrated with the European single market, with just over half of exports destined for EU partners. Germany and France are Italy’s most important export markets within the EU, while the United States and Switzerland are key destinations outside Europe. Imports follow a similar pattern, with the majority sourced from EU member states—particularly Germany, France, and the Netherlands—alongside substantial imports from China and the United States.
Within the European Union, Italy plays a major institutional and political role. It is represented by 76 Members of the European Parliament, reflecting its population size and political weight. Italian government representatives actively participate in the Council of the European Union, contributing to the adoption of EU legislation and the coordination of policies across all major areas. Italy has also held the rotating Presidency of the Council of the EU on numerous occasions, most recently in the second half of 2014, underlining its long-standing involvement in shaping EU policy.
At the European Commission level, Italy is represented by its nominated Commissioner, currently responsible for economic and financial affairs. The European Commission maintains an official presence in Italy, supporting engagement with national authorities and the public. Italy is also strongly represented in EU advisory bodies, with 24 members on the European Economic and Social Committee and 23 representatives on the European Committee of the Regions, ensuring that social, economic, and regional perspectives are reflected in EU decision-making.
Italy maintains a permanent representation to the European Union in Brussels, which serves as the main channel for coordinating national positions and advancing Italian interests within the EU framework. As one of the EU’s largest economies, Italy contributes substantially to the EU budget in line with its economic capacity. These contributions support a wide range of EU-funded programmes and projects aimed at promoting economic development, social cohesion, innovation, and sustainability across the European Union, in line with shared European priorities.
