Executive Summary ... 5
SWOT Analysis . 6
Italy Security SWOT. 6
Italy Political SWOT 7
Italy Economic SWOT 8
Italy Business Environment SWOT 9
Global Political Outlook . 10
Major Risks Looming In 2012-2013. 10
Global Flashpoints: Eurozone, Iran, Syria, Afghanistan, Korean Peninsula ... 10
Table: Election Timetable, Q212-Q113 . 14
Wild Cards To Watch ... 17
Europe Security Overview . 20
The Strategic Outlook For The 2010s ... 20
Europe In A Global Context... 20
Europe''s Key Security Issues Over The Coming Decade ... 20
Eurozone Analysis... 26
What If The Eurozone Collapses? Political Risks Assessed . 26
Security Risk Ratings .. 31
BMI’s Security Ratings 31
Table: Europe Security Risk Ratings ... 31
Table: Europe State Terrorism Vulnerability To Terrorism Index . 32
Political Outlook . 34
Monti To Serve Out Term Despite Rising Opposition ... 34
Table: Italy’s Political Overview . 36
Italy Security Overview 38
Internal Security Situation 38
Organised Crime ... 38
Latest Developments 40
Timeline: Internal Threats . 40
Table: Insurgent Groups .. 41
External Security Situation ... 42
International Terrorism ... 42
Latest Developments 44
Timeline: External Threats 44
Armed Forces And Government Spending ... 46
Armed Forces 46
Defence Posture . 47
International Deployments . 51
Table: Italy’s Foreign Deployments 53
Coordination And Joint Operations . 53
Weapons Of Mass Destruction ... 53
Market Overview . 56
Arms Trade .. 56
Defence And Procurement . 59
Table: Italy’s Key Defence Players .. 60
Timeline: Defence And Procurement ... 61
Industry Forecast Scenario ... 63
Armed Forces 63
Table: Italy’s Armed Forces Personnel, 2002-2009 (’000, unless otherwise stated) . 63
Table: Italy’s Manpower Available For Military Service, 2011-2016 (aged 16-49, unless otherwise stated) 63
Defence Expenditure 64
Table: Italy’s Defence Expenditure, 2009-2016 ... 64
Table: Italy’s Defence Expenditure Scenario – Changing % Of GDP, 2009-2016 (US$mn) . 64
Defence Trade 64
Table: Italy’s Defence Imports, 2009-2016 (US$mn) 66
Table: Italy’s Defence Exports, 2009-2016 (US$mn) 66
Table: Italy’s Defence Trade Balance, 2009-2016 (US$mn) ... 67
Key Risks To BMI’s Forecast Scenario 67
Macroeconomic Forecast . 67
2012 Recession To Be Followed By Anaemic Recovery . 67
Table: Italy – GDP By Expenditure, 2008-2016 (%) . 73
Company Profiles . 74
AgustaWestland . 74
Avio 76
Fincantieri ... 78
Finmeccanica. 80
MBDA 83
Italy Demographic Outlook 85
Italy''s Population By Age Group, 1990-2020 (''000) 85
Italy''s Population By Age Group, 1990-2020 (% of total) . 86
Italy''s Key Population Ratios, 1990-2020 .. 87
Italy''s Rural And Urban Population, 1990-2020 . 88
Methodology ... 89
How We Generate Our Industry Forecasts 89
Defence Industry 89
Sources 90Table: Election Timetable, Q212-Q113 . 14
Table: Europe Security Risk Ratings . 31
Table: Europe State Terrorism Vulnerability To Terrorism Index . 32
Table: Italy''s Political Overview . 36
Table: Insurgent Groups . 41
Table: Italy''s Foreign Deployments . 53
Table: Italy''s Key Defence Players . 60
Table: Italy''s Armed Forces Personnel, 2002-2009 (''000, unless otherwise stated) . 63
Table: Italy''s Manpower Available For Military Service, 2011-2016 (aged 16-49, unless otherwise stated) . 63
Table: Italy''s Defence Expenditure, 2009-2016 . 64
Table: Italy''s Defence Expenditure Scenario – Changing % Of GDP, 2009-2016 (US$mn) . 64
Table: Italy''s Defence Imports, 2009-2016 (US$mn) . 66
Table: Italy''s Defence Exports, 2009-2016 (US$mn) . 66
Table: Italy''s Defence Trade Balance, 2009-2016 (US$mn) . 67
Table: Italy – GDP By Expenditure, 2008-2016 (%) . 73