This publication is based on the results of the conference “Italy at the beginning of the 21st century” (IMEMO, October 4, 2013), attended by experts from IMEMO as well as the Higher School of Economics, the Russian State University for the Humanities, Institute of Europe RAS, Institute of Universal History RAS and other research centers. The study investigates the transformation of Italian political institutions under economic instability, the results of structural economic reforms and their impact on the social sphere, some aspects of regional development. Special attention is given to Italy’s foreign policy and the prospects for Russian-Italian cooperation in terms of the deterioration of Russia's relations with the European Union.