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The victory of republicanists over monarchists was actually really tight (less than 2 million people voted for the republic over the monarchy) and in some region, especially the Southern ones, the monarchy had won over the republic. It's easy to understand how important and crucial these facts are. Immediately after the referendum, a Constitutional Assembly was established. Its aim was to draft the Constitution which was promulgated in January 1948.
The head of State is the President of the Republic who is elected every seven years by the Parliament in joint session. At the moment the President of the Republic is Sergio Mattarella.
As for Parliament, it is divided in two different chambers: the Lower Chamber and the Senate. The Lower Chamber (Chamber of Deputies) holds the legislative power and is elected by citizens who are over eighteen years of age. Its current President is Laura Boldrini, whom I personally adore but that's my opinion. She is often targeted by sexist remarks and offenses because she is an outspoken feminist and is perceived as "standoffish". No comment.
The Senate is elected by citizens who are over twenty-five years of age and holds the legislative power, as well. Basically, a draft has to pass through the Lower Chamber and the Senate before becoming an actual law. The Renzi government had proposed to change this structure and to transform the Senate into a Senate of Regions which would deal with topics concerning single Italian regions, international politics etc. In order to decide on this matter, on 4th December 2016 there was a referendum which rejected Prime Minister Renzi's reform. He resigned on the same day.
Matteo Renzi and President Obama
The Prime Minister and the Government hold the executive power. The current Prime Minister of Italy is Paolo Gentiloni who was appointed by the President of the Republic in December 2016.
The judiciary power is held by the judges and this specific power is autonomous and independent from both the Government and the President of the Republic. There's also the Constitutional Court which deals with really important topics such as laws which might breach the Constitution.
At the moment the two major parties in Italy are the Democratic Party led by Matteo Renzi and the Five Stars Movement led by Beppe Grillo.
The symbol of the Italian Republic