Democratic Peace Theory observes a lack of war between liberal democratic states that merits an explanation. Democratic Peace Theory does not give a satisfactory explanation and as such, an exploration into the logic of the theory through an examination of its internal logic and wider implications is warranted. An understanding of dialectical materialism allows for such an examination when used together with a thorough exploration of the relevant cases of Greece and Italy in the two periods from 1960-1979 and 1991-2010 respectively. This examination will look at how well Democratic Peace Theory explains the observed facts through an examination of trade statistics of the two countries, which will here be used as an indicator of foreign policy. Democratic Peace Theory cannot explain the data that is analysed here, but through the examination, a better explanation through dialectical materialism can be arrived at. The international system is constructed through nation states seeking their own interests to the extent that they are able to identify them. The international system in turn gains influence over the same nation states as have constructed it. This is the dialectical functioning of the international system that is created by and affects national interests and will be argued to better explain the observation than Democratic Peace Theory. The main body of the text is 22.000 words.