The year 2011 observed the economic recovery slipping into lower gear in Italy. A series of negative factors have contributed to the uncertainty of the prospect of Italian economy. Italian political situation remains generally stable, but the results of the local elections and referendum show that the ruling centre-right coalition suffered setbacks and its popularity is in a slump. The tough austerity plans gave rise to the eruption of grand-scale strikes, but didn't evolve into social turbulence. On the international arena, the concerns for and participation in the Libya war almost explicitly shows the pragmatist principle pursued by Italy in its foreign policies in the recent years. <<