what economic system is in italy?

Don't even bother the guy above...

http://en.wikipedia.org/wiki/Economy_of_italy

Unemployment rate in Italy (and in Germany and France) is higher than in the US, but not SO much (6.5 It average, while 4.3 in Northern Italy; 4,5 US), while in almost all other Western European Countries is lower (4% or less), like in developed Asian Countries.

Edit: nabindu, my point is not about unemployment rate, but the way you say it and the reason behind; but, anyway, if you look in the same site you provide, you'll find this:

Economy - overview: Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: the budget deficit has breached the 3% EU ceiling. The economy experienced low growth in 2006, and unemployment remained at a high level.

Definition: This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends.

Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of April 17, 2007

So, that site describe Italian economy as "capitalistic" :)

If you ask, my source (various) are up to date to June, 2007.

few, if any, raw materials and energy sources.

High industrialization (Italy is one among G8 countries), but:

- many tiny family-owned industrial firms producing low tech products or machines for producing the latter products.

- few big industries, supported or owned by government: They were flourishing in a recent past (chemical industries were on the top), but now they had been sold to foreign corporations.

The sai tiny industries were flourishing and indirectly supported by government that lowered international value of italian currency (today it's not more possible with one european currency)

Anyway governement still preserve its hand on some key services: mail, electrical energy (production or long distance relay). It's not an absolute monopoly, but a kind of oligopoly.

In this regard, it'sno very different from any western europe country.

It have been given quite undesirable, whilst the gas expenses went so severe (some places to tremendously much 5 funds a gallon) that folk have been utilising their credit enjoying cards to pay for issues they regularly could with funds/verify/debt enjoying cards. The housing industry, by using deregulation of loans that anybody could desire to get a private loan on a house outdoors of their funds in the event that they did an ADJUSTABLE value very own loan very own loan! KEY observe: ADJUSTABLE. the different very own loan may be the activity basically very own loan, the place you in no way pay on the homestead, you basically pay on the activity. it is like renting yet pretending which you very own the homestead. government has been overspending because Democrats have been placed into workplace. they suspect that in case you throw funds on the subject it is going to easily flow away. It takes a mixed attempt of all people who stay interior the U. S.. With over 669,000 new people on unemployment, what new company will create jobs wherein those people could desire to artwork. The day there are extra people reckoning on the government than there are people who're working complicated to herald dinner to the table is the day u.s. would be a usa that when became into. you could no longer have extra going out, than there is coming in. people who write tests that are no longer stable flow to penitentiary, i think the comparable concern could desire to ensue to the government officers. you could no longer print extra funds and think of which you will proceed to jot down tests without real backing to realize this. i'm hoping issues get extra effectual, however the Antichrist government that we at the instant have are basically making issues worse.

socialism -- this is the reason why most european countries have higher unemployment rate than U.S.

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i don't know why the guy at my BOTTOM get so hostile against me. Anyway, here is the source of my statistical info: