Italy is a parliamentary republic divided into 20 regions. The country's mixed economy is primarily driven by manufacturing (especially in the industrialized north), tourism, and services, with a strong presence of small and medium-sized enterprises. Agriculture and food production also play important roles, particularly in the south. The backbone of the economy consists of both private enterprise and state involvement, though there are significant economic disparities between the country's northern and southern regions. Italy is part of the [[European Union (EU)]]