Background: Italy became a nation-state belatedly - in 1861 when the city-states of the peninsula and Sicily were united under King Victor EMMANUEL. The Fascist dictatorship of Benito MUSSOLINI that took over after World War I led to a disastrous alliance with Nazi Germany and Italian defeat in World War II. Revival followed. Italy was a charter member of NATO and the European Economic Community (EEC) and joined the growing political and economic unification of Western Europe, including the introduction of the euro in 1999. Persistent problems include illegal immigration, the ravages of organized crime, corruption, high unemployment, and the low incomes and technical standards of southern Italy compared with the more prosperous north.