I think there are some nice labels here in italy.
Now, I also think those labels are so "little" (in terms of copies sold) that they won't help you pay the rent and so on, but they can give you some sort of "exposure".
I'm talking about things like
www.wallacerecords.com or
www.supernaturalcat.com and maybe a few others that, thanks to their "interesting" rosters, have some credit around europe and maybe in usa too, to an extent...
I think you don't want to deal with our nice italian frickin' fake indie scene ( and all the "hip" labels that cream their pants hearing clap your hands say yeah and architecture in helsikni)...Having an album out on a little label that gets some attention is better than having an album out "unnoticed" on a bigger label imo. The problem is, as always, money. If you want to make a living out of your passion for music, I really wouldn't know what suggestions to give. Furthermore, you live on an ISLAND! man, you are certainly not in an easy situation... I say, go to catania, talk to uzeda and steve albini, make him mention your band in an interview on pitchfork and you're served. ha ha.
Sorry, I ran out of serious thoughts. By the way, guys, I think it's hard in every country in the world, but here in italy the sitaution is scary to say the least. It's sad, there was such a nice "independent" movement going on in the early 90's, and now it's all dead. Not everything was THAT interesting, but it sure helped some bands getting the recognition/exposure they deserved. Nowadays all the youngsters listen to those fake poppunk bands and dress like avril lavigne (males too ha ha) and download the soundtracks of cell phones tv ads. Blaaah. I think there's the ABSOLUTE need for some "connections" outside Italy to stand a chance to get some recognition. And, you know, many decent italian bands start to get some credit here ONLY after a foreign magazine or band say nice things about them.