Italian nationalists considered World War I a mutilated victory because Italy did not have all the territories promised by the Treaty of London (1915), and that sentiment led to the rise of the fascist dictatorship of Benito Mussolini in 1922.
Following the end of the German occupation and the killing of Benito Mussolini, the 1946 Italian institutional referendum abolished the monarchy and became a republic, reinstated democracy, enjoyed an economic boom, and co-founded the European Union (Treaty of Rome), NATO, the Group of Six (later G7), and the G20.
[42] In the eighth and seventh centuries BC, for reasons including demographic crisis, the search for new commercial outlets and ports, and expulsion from their homeland, Greeks began to settle along the coast of Sicily and the southern part of the Italian peninsula, which became known as Magna Graecia.
Decades later, the armies of Eastern Emperor Justinian entered Italy with the goal of re-establishing imperial Roman rule, which led to the Gothic War that devastated the whole country with famine and epidemics.
After the death of Charlemagne (814), the new empire disintegrated under his weak successors, resulting in a power vacuum in Italy and coinciding with the rise of Islam in North Africa and the Middle East.
The Investiture controversy, over whether secular authorities had any legitimate role in appointments to ecclesiastical offices, was resolved by the Concordat of Worms in 1122, although problems continued in many areas of Europe until the end of the medieval era.
In the north, a Lombard League of communes launched a successful effort to win autonomy from the Holy Roman Empire, defeating Emperor Frederick Barbarossa at the Battle of Legnano in 1176.
Keeping direct Church control and Imperial power at arm's length, the many independent city-states prospered through commerce, ultimately creating the conditions for the artistic and intellectual changes produced by the Renaissance.
[82] Milan, Florence and Venice, among other city-states, played a crucial innovative role in financial development, devising the main instruments and practices of banking and new forms of social and economic organization.
The county of Savoy expanded its territory into the peninsula in the late Middle Ages, while Florence developed into a highly organized commercial and financial city-state, becoming for many centuries the European capital of silk, wool, banking and jewellery.
[85][86] The Renaissance represented a "rebirth" not only of economy and urbanization but also of arts and science, fuelled by rediscoveries of ancient texts and the migration west into Italy of intellectuals fleeing the Eastern Roman Empire.
Italian[a] explorers and navigators from the dominant maritime republics, eager to find an alternative route to the Indies to bypass the Ottoman Empire, played a key role in the Age of Discovery and European colonization of the Americas.
In face of the threat of a French hegemony over much of Europe, a Grand Alliance between Austria, England, the Dutch Republic and other minor powers (including the Duchy of Savoy) was signed in The Hague.
The Alliance successfully fought and defeated the Franco-Spanish "Party of the Two Crowns", and the subsequent Treaty of Utrecht and Rastatt passed control of much of Italy (Milan, Naples and Sardinia) from Spain to Austria, while Sicily was ceded to the Duchy of Savoy.
Depretis put through authoritarian measures, such as banning public meetings, placing "dangerous" individuals in internal exile on remote penal islands, and adopting militarist policies.
Crispi worked to build Italy as a great world power through increased military expenditures, advocation of expansionism, and trying to win Germany's favor even by joining the Triple Alliance.
Peasants without stable income were forced to live off meager food supplies, disease was spreading rapidly, plagues were reported, including a major cholera epidemic which killed at least 55,000 people.
[154][155] Giolitti's most important interventions were social and labor legislation, universal male suffrage, the nationalization of the railways and insurance companies, the reduction of state debt, and the development of infrastructure and industry.
The protests that ensued became known as "Red Week", as leftists rioted and various acts of civil disobedience occurred such as seizing railway stations, cutting telephone wires and burning tax-registers.
Italy proved unable to prosecute the war effectively, as fighting raged for three years on a very narrow front along the Isonzo River, where the Austrians held the high ground.
Historians regard mutilated victory as a "political myth", used by fascists to fuel Italian imperialism and obscure the successes of liberal Italy in the aftermath of World War I.
This early Fascist movement had a platform more inclined to the left, promising social revolution, proportional representation in elections, women's suffrage (partly realized in 1925) and dividing rural private property held by estates.
Thenceforth, the Fasci di Combattimento (forerunner of the National Fascist Party, 1921) successfully exploited the claims of Italian nationalists and the quest for order and normalization of the middle class.
On 25 July, Mussolini was ousted by the Great Council of Fascism and arrested by order of King Victor Emmanuel III, who appointed General Pietro Badoglio as new prime minister.
[219] The Italian General Confederation of Labour (CGL) and the PSI refused to officially recognize the anti-fascist militia and maintained a non-violent, legalist strategy, while the Communist Party of Italy (PCd'I) ordered its members to quit the organization.
[239] The so-called Italian economic miracle lasted almost uninterruptedly until the "Hot Autumn's" massive strikes and social unrest of 1969–70, that combined with the later 1973 oil crisis, gradually cooled the economy.
Thousands of kilometres of railways and highways were completed in record times to connect the main urban areas, while dams and power plants were built all over Italy, often without regard for geological and environmental conditions.
In 1992, two major dynamite attacks killed two judges,[244] and a year later tourist spots, leaving 10 dead and 93 injured and causing severe damage to cultural heritage such as the Uffizi Gallery.
To avoid the debt crisis and kick-start economic growth, Monti's national unity government launched a massive programme of austerity measures; that reduced the deficit but precipitated a double-dip recession in 2012 and 2013.
[251][252] On 24 and 25 February 2013, a general election was held; a centre-left coalition led Pier Luigi Bersani, Leader of the Democratic Party, won a slight majority in the Chamber of Deputies but did not control the Senate.