18-K/A

Form 18-K/A

Amendment

No. 2

For Foreign Governments and Political Subdivisions Thereof

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

ANNUAL REPORT

of

THE REPUBLIC OF ITALY

(Name of Registrant)

Date of end of last fiscal year: December 31, 2007

SECURITIES REGISTERED*

(As of close of the fiscal year)

Title of Issues	Amounts as to Which Registration is Effective	Names of Exchanges on Which Registered
N/A*	N/A	N/A

Name and address of Authorized Agent of the Registrant in the United States to receive notices

and communications from the Securities and Exchange Commission:

THE HONORABLE GIOVANNI CASTELLANETA

Italian Ambassador to the United States

3000 Whitehaven Street, N.W.

Washington, D.C. 20008

It is requested that copies of notices and communications from the Securities and Exchange Commission be sent to:

RICHARD A. ELY, ESQ

and

LORENZO CORTE, ESQ

Skadden, Arps, Slate, Meagher & Flom (UK) LLP

40 Bank Street,

Canary Wharf

London E14 5DS

England

* The Republic of Italy files Annual Reports on Form 18-K voluntarily in order for The Republic of Italy to incorporate such Annual Reports into its shelf registration statements.

This amendment to the annual report of the Republic of Italy (the “Republic”) on Form 18-K for the year end December 31, 2007 comprises:

(a)  Pages numbered 1 to 4 consecutively.

(b)  The following exhibits:

Exhibit 1 — Recent developments update, dated September 25, 2009;

Exhibit (c) — The update to the annual budget for the Registrant as set forth in the Update to the Program Document for 2010-2013 (Nota di Aggiornamento al Documento di Programmazione Economico-Finanziaria per gli anni 2010-2013), dated September 22, 2009, and in the Annual Program Report for 2010 (Relazione Previsionale e Programmatica per il 2010), dated September 22, 2009, both filed in paper format under cover of Form SE on September 25, 2009.

This amendment to the annual report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions thereof.

2

SIGNATURE

Pursuant to the requirements of the United States Securities Exchange Act of 1934, the registrant Republic of Italy has duly caused this Amendment No. 2 to the Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized, in Rome, Italy on September 25, 2009.

REPUBLIC OF ITALY

By:  /s/  Maria Cannata

Name:     Dott.ssa Maria Cannata

Title:  Director General — Treasury

Department — Direction II

Ministry of Economy and Finance

3

EXHIBIT INDEX

Exhibit		Description	Page No.
	1	Recent developments update, dated September 25, 2009	5
	(c)	The update to the annual budget for the Registrant as set forth in the Update to the Program Document for 2010-2013 (Nota di Aggiornamento al Documento di Programmazione Economico-Finanziaria per gli anni 2010-2013), dated September 22, 2009, and in the Annual Program Report for 2010 (Relazione Previsionale e Programmatica per il 2010), dated September 22, 2009, both filed in paper format under cover of Form SE on September 25, 2009.	6

4

EX-99.1

Exhibit 1

Recent developments update dated September 25, 2009

The information included in this section supplements the information about the Republic of Italy that is contained in Exhibit D to the Republic’s annual report on Form 18-K, for the fiscal year ended December 31, 2007. To the extent that the information included in this section differs from the information set forth in the annual report, you should rely on the information in this section.

The Italian Economy

Based on ISTAT data, Italy’s seasonally adjusted average unemployment rate increased to 7.4 per cent in the second quarter of 2009, from 7.3 per cent recorded during the previous quarter.

Public Finance

In July 2009, the Government finalized and presented to Parliament its 2010-2013 Program Document, which was updated on September 22, 2009. The following table sets forth information on Italy’s revised principal public finance targets for the years indicated, as well as the gross domestic product assumptions underlying the Program Document.

2010-2013 Program Document Objectives

	2008			2009			2010		2011		2012		2013
GDP (% real growth rate)		(1.0	)		(4.8	)		0.7		2.0		2.0		2.0
Net borrowing, as a percentage of GDP		2.7			5.3			5.0		3.9		2.7		2.2
Primary balance, as a percentage of GDP		2.4			(0.5	)		0.0		1.3		2.8		3.4
Interest expense, as a percentage of GDP		5.1			4.8			4.9		5.2		5.5		5.6
Public debt, as a percentage of GDP		105.7			115.1			117.3		116.9		115.1		112.7
Structural net borrowing (budget surplus), as a percentage of GDP		3.4			3.3			2.8		2.3		1.8		2.0

Source: Update to the 2010-2013 Program Document.

The objectives and forecasts set forth in the Program Document are based on assumptions relating to future economic developments, including international economic trends, and may therefore not be realized.

5

EX-99.(C)

Exhibit (c)

The update to the annual budget for the Registrant as set forth in the Update to the Program Document
for 2010-2013 (Nota di Aggiornamento al Documento di Programmazione Economico-Finanziaria per gli
anni 2010-2013), dated September 22, 2009, and in the Annual Program Report for 2010 (Relazione
Previsionale e Programmatica per il 2010), dated September 22, 2009, both filed in paper format
under cover of Form SE on September 25, 2009.

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