Italy

Parliamentary democracy with a history of frequent government changes. Current government has provided more stability than recent predecessors. Political risk is primarily fiscal — Italy's high public debt constrains policy space.

Third-largest EU economy with world-class manufacturing in machinery, fashion, and food sectors. Chronic low-growth trajectory, regional disparities between north and south, and high youth unemployment remain structural weaknesses.

EU-standard regulatory framework with some administrative complexity. CETA provides strong market-access provisions. Italian public-procurement processes can be bureaucratic but are governed by EU directives.

Strong manufacturing base, particularly in northern Italy's industrial clusters. Logistics infrastructure is well-developed in the north but weaker in the south. Italy is a key EU entry point via Mediterranean ports.

Eurozone member. Italian sovereign-debt dynamics can create periodic stress in European bond markets, but euro membership provides currency stability for trade purposes.