From the beginning of 2010 Italy witnesses the signs of economic recovery，with a slow upturn of the industrial production，obvious picking up of exports and an essentially steady industry business confidence index. However，a number of uncertainties still persist. In the local elections held in 13 of the total 20 districts，the Liberal People’s Party chaired by Berlusconi has won a victory. However，rifts began to emerge within the ruling party，which has not yet developed into a government crisis. An austerity policy conducted by the Italian government to cope with the shocks by the world financial crisis led to the public’s dissatisfaction and finally to a flux of strikes. Due to the agreements reached between the government and most of the trade unions，the tide of strike hasn’t generated social turmoil. The external policy of Italy still focuses on economic diplomacy in the year of 2010 and comprehensive cooperation and exchanges between China and Italy have been vigorously advanced by the visit of Premier Wen Jiabao to Italy. It is estimated that the Italian economy will grow moderately and that its political and social situations will remain stable if without exceptional events in the year of 2011.