Geographic Environment Italy is located in southern Europe The country has a boot shaped Peninsula It is made of the south side of the Alps Po Valley and the islands of Sardinia and Sicily Italy is in the Eastern Hemisphere and is 40 mountainous Its major cities are Rome Milan and Naples Italy's capital city is Rome which is also its largest Economic Research Italy has a population of 61 3 million people The primary language spoken is Italian German and French Ladin in spoken in some of the Northern regions Italy's religion consists mainly of Christians who are Roman Catholic The currency is the Euro It is the official currency of the European Union The Euro is the second most traded currency in the after the US dollar in the foreign exchange market The Autostrada are the roads that form the Italian system of motorways Italy has a diversified industrial economy which is the third largest in the Eurozone and the eighth largest in the world It is divided into a developed industrial north dominated by private companies and the agricultural south