Italy Flag
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Brief History. In 1861, Italy became a nation-state, 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 disastrous alliance with Nazi Germany led to Italy's defeat in World War II. The monarchy was replaced by a democratic republic in 1946 and economic revival followed. It has been at the forefront of European economic and political unification, joining the Economic and Monetary Union in 1999. Persistent problems include illegal immigration, organized crime, corruption, high unemployment, sluggish economic growth, and the low incomes and technical standards of southern Italy compared with the prosperous north.
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