For the sake of auld lang syne, I'm reprinting a rather popular post from the Eggplant's first year, 2007, on what Italians do for the holiday. When I first wrote the post I said that the lentils should preferably represent euros, due to their relative strength four years ago ... now we're not even sure the euro will survive.
But as you might imagine, food and drink are the main attraction. Sparkling wine is drunk, either (ahem) Champagne, Asti or Prosecco. They may have a cenone, literally, a big dinner, or just appetizers with drinks.
The most entrenched tradition calls for eating lentils with one of two porky products known as cotechino and zampone. The latter are the product of a desperate siege of Mirandola near Modena in the Renaissance, and if you ask me, it shows. Why else would anyone eat dubious porcine matter in pigskin (cotica) or even worse, the skin from the pig's trotter (zampa, so that zampone is literally big paw)? One way of looking at it is if you start the New Year by eating a big pig paw it can only get better thereafter. The traditional accompaniment, aside from the lentils (which symbolize coins, preferably Euros, and thus prosperity), is mashed potatoes. The sliced piggy parts are often placed on a platter and arranged artistically with the potatoes surrounding it.