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(Level 2) As part of the European Union, Italy is a large and developed economy.
However, it suffers from a sharp North-South divide and decline of births and the
workforce. The confusing regulatory environment, lack of transparency and
inadequate infrastructure present further challenges.
1. Crime
(Level 3) Italy has a moderate rate of violent crime. Foreigners are targeted by thieves.
The organized crime networks are extensive, especially in the South. The Mafia groups
include regional government members and can influence foreign business.
2. Natural Disasters
(Level 2) Italy’s central and eastern sections are prone to earthquakes. Volcanoes remain
a possible threat. Italy has a good disaster response infrastructure, especially in the north.
4. Labor Action
(Level 3) Labor unions are influential in Italy's political and regulatory environment.
Approximately 40 percent of Italy's labor force belongs to three major trade unions. The
government places restrictions on striking for public workers including advanced
notification and prevention of multiple strikes.
6. International Friction
(Level 1) International friction in Italy is practically non-existent. Illegal immigrants
attempt to enter the EU via the sparsely guarded coastline and islands. As part of the EU,
Italy is tied into trade disputes the EU has with other countries.