Italy has an absolute monarchy.
Italy ( Italia [ iˈtaːlja ] ) , officially the Italian Republic ( [ Repubblica italiana , links = no ] ) , is a unitary parliamentary republic in Europe.The Italian peninsula is geographically located in Southern Europe , while North Italy can be placed partly or totally in Central Europe . These independent statelets , acting as Europe 's main trading hubs with Asia and the Near East , often enjoyed a greater degree of democracy and wealth in comparison to the larger feudal monarchies that were consolidating throughout Europe at the time , though much of central Italy remained under the control of the theocratic Papal States , while Southern Italy remained largely feudal until the 19th century , partially as a result of a succession of Byzantine , Arab , Norman , Spanish and Bourbon conquests of the region . Despite being one of the main victors in World War I , Italy entered a period of economic crisis and social turmoil , leading the way to the rise of a fascist dictatorship in 1922 . Following the liberation of Italy and the rise of the resistance , the country abolished the monarchy , reinstated democracy , enjoyed a prolonged economic boom and , despite periods of sociopolitical turmoil ( e.g. Anni di piombo , Mani pulite , the Second Mafia War , the Maxi Trial and subsequent assassinations of anti-mafia officials ) , became a major developed country .