Italian folk music differs very much from zone to zone,especially from north and south.Bert is right,Italian folk isn't limited to Neapolitan Tarantella.In the north we most have ballads,not very different from the north western Europe tradition in setting and subject.The music of Piedmont is very akin to french (South of France especially) music,with a slight (sometimes not so slight)celtic undertone.
"The folk songs of the Piedmontese tradition are severe and sad, more narrative than lyric and often draw on historical events; dance tunes are cheerful and quick. The traditional musical instruments are the hurdy-gurdy, the accordion, the bagpipe, the mandola, the violin, several plucked instruments as well as a lot of flutes."
That sums pretty well the kind of music we do. http://www.worldmusicportal.com/Festivals/italy.htm
This other link can be useful to you.