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Italy, a founding member of the European Union, has a significant place in the EU with its population ranking as the third largest. With a GDP that is among the top economies in the EU, Italy plays a crucial role in the European economic landscape. It faces challenges such as a high public debt-to-GDP ratio and an aging population. Italy's economy is diversified but notably strong in manufacturing and export, particularly in machinery, vehicles, and luxury goods. The country is also a major beneficiary of EU budget funds, which support regional development and agricultural sectors.

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