Questo è lo Stato in cui viviamo.

English Translation

This is the state we live in.

Why is stato capitalized?

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Hi. Probably to help us differentiate between the *condition in which we live as opposed to the American *state people live in. Look forward to hearing from others.

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FWIW, French makes that same distinction.

The English sentence is ambiguous, isn’t it?

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According to Treccani, it is written capitalized to distinguish from the other use:

I didn’t actually know there was a rule for this, I am pretty sure you can find it written both ways in general.

Edit: I suppose it has an implied connotation of “the Italian State”, as “la Chiesa” refers to the Catholic Church.

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