European Stars and Stripes (Newspaper) - June 20, 1977, Darmstadt, Hesse What was believed to be common crime in Italy has been linked to political terrorism. Hie communists Are increasing their pressure forbore Power and eventual Mali in toe Cabinet. The Christian democrats Are easting about Lor strategy that would allow them to kick the marxists out As they did from a Post War government in 1m7. Meanwhile they Are in increasing agreement on two Points the need to solve Italy s economic mess and control the wave of crime and political terrorism that has reached epidemic proportions this year. The causes of Italy s economic crisis Are country has been living far beyond its Means for years and in the process has built up a staggering foreign debt estimated at $17 has few natural resources most importantly no Oil. Its Economy is based on labor intensive transformation Industry dependent on exports to the wave of Union unrest in 1969, Italy s labor costs have been rising faster than those of other Industrial nations and its products Are no longer competitive on International slump in exports and the importation of $10 billion in Oil produced a foreign Trade deficit of 5.4 trillion lire 9.06 billion last year a 43 per cent increase Over 1975.in turn the lira has lost 29 per cent of its value against the . Dollar Over the past 18 months and inflation is ruining at about 22 per cent currency reserves Are dangerously Low and even with More than $1 billion in Loans from the International monetary fund and the common Market the government barely has enough Cash to pay off $1.4 billion in debt service this Outlook is guarded on How it will pay the $14 Bil lion in debt service due next year. Andreotti s government has responded to these rim realities with a package of austerity measures that won it additional Loans from the International monetary fund and common Market. The package which got reluctant communist backing is designed to reduce imports by cutting internal demand through credit restrictions and higher taxation and boost exports by at least holding the line on labor and businessmen View these measures As necessary Short term palliative to Deal with the immedi ate Cash crisis but inadequate in attacking the Basic structural weaknesses of the italian restriction of consumption the credit squeeze and the exaggerated increase in the Cost of Money Bank interest charges Are about 22 per cent make it impossible to consider investment that would be necessary to increase the number of jobs available says Giusepp Luraghi former chairman of Alfa Romeo and managing director of Tho Pirelli tire than one million italians Are unemployed. About Balf of them hold High school diplomas or College de Grees. These people do not have the Liberal a employ Lack of Confidence in the government s ability to perform is pervasive ment benefits available elsewhere in Europe and the Yare angry. Hie situation is especially dangerous on the campuses. Thousands of students realizing there will be no jobs for them when they graduate have taken tothe streets in violent demonstrations throughout Italy. The targets of these demonstrations in which at least45 policemen and hundreds of students have been wounded has not Only been the Christian democrats but the communists As party was shocked last february when communist Union Leader Luciano Lama was run off the rom University Campus by a leftist student mob that consid ered the marxist party had become too much a part of the establishment by copying up to the Andreotti govern to the tension has been a wave of political terrorism from extremists of both the left and the past year 14 policemen and Justice officials have been shot to death in assassination ambushes or clashes with extremists who live infiltrated student extremists taking part in a leftist demonstration in Milan in May carried High powered p-38 and 44-Calibcr pistols and even had military style fragmentation grenades in addition to the usual firebombs. Police also have turned up Strong evidence of links Between the political terrorism and what was believed to be common crime. There were 39 kidnappings during the first five months of the year one every three Days on average an much of the Ransom Money has later turned up in the hands of political extremist police moves to sequester assets of victims families to prevent Ransom payments the kidnapping cargoes on. Within one hour during the afternoon of May 16 three persons were abducted from the streets of Rome and the kidnappings has come a wave of jail Breaks 43 in the first five months of the year in which a total 144prisoners, Many of them convicted political terrorists have Christian democratic and communist leaders have said they believe sinister forces namely foreign intelligence agencies or Neo fascist groups Are behind the terrorism in an Effort to destabilize the Western Diplomat speculated that czechoslovakian agents with approval from Moscow have had a hand in the is involved the Public has Long since lost Confidence in the government s ability to control political terrorism much less common crime. Lack of Confidence in the government s ability to perform is pervasive especially when it comes to reforming itself and rooting out corruption born of 30 uninterrupted years of Christian democratic role. At last count Italy had an estimated 56,000 government agencies. Nobody is sure of the exact number. Many of these agencies Long ago lost their reason for include fascist Era agencies set up to confiscate jewish and Allied properties another to promote tourism in italian Africa another to auction off Allied Mili tary trucks left Over after world War these agencies went on for years with employees on the state payroll because succeeding Christian demo cratic administrations did not want to abolish Job and create political there Are the scandals. According to . Congressional reports the Cia fun need about $76 million to non comm rest politicians in Italy mostly Christian democrats through 1971a former Premier and two sex defense ministers have bran accused of accepting about $2 million from the Lockheed aircraft corp., to favor Purchase of the firm s military transport planes Over italian models a politically packed parliamentary commission is investigating the Case and already the former Premier has been democratic Leader Flaminio Piccol has said he believes voters have been turning to the left in search of values of Justice order and cleanliness that they have seen tarnished through our inertia through the heaviness of 30 years in the big question now is whether the Christia democrats can overcome their reputation for inefficiency and corruption win Back voters and pot Stop to the communists. Most political experts think it is Loo late but some politicians and Western diplomats think the Christian democrats still have a slim Chance to pull it of to these experts the Christian democratic strategy is based on surviving in Power another two years while at the same time involving the communists in the thorny problems of governing to a limited Christian democratic Hope is that the Public especially the crucial working and Middle classes will by then be Able to see that the communists Are not Miracle workers that their marxist ideology can be compromised for the Sake of political two years time the scenario goes the Christian democrats will have had a Chance to solve or at least begin solving some of the problems they have allowed to build up Over the past three decades. There is some evidence to support the Christia democratic Hopes. Much of the student movement has already lost Faith in the communists As the part of revolutionary Zeal. The big Union confederations have been grumbling bitterly about the communist supported austerity measures that Are cutting into workers paychecks and Nave begun staking out in dependent positions. In local elections in May the communists lost an aver age of about 9 per cent of the strength they gained in last year s National elections and dropped 13 per cent in one key the Christian democrats Are not celebrating yet. A nationwide Public opinion poll published in late May indicated the communists had not lost ground and would in fact out poll the Christian democrats for the first time Ever if National elections were held immediately. The poll results indicated the communists would get3g.2 per cent of the vote to the a Mustian democrats 35.4 per cent and therefore win the right to form Italy s next government. Even so Western diplomats still hold out Hope. It s not an inevitable thing at All that the communists Are going to get into the government one said recently. The Christian democrats and anxious officials i Washington and the nato capitals Are hoping he is right. Premier Lullo Andreotti shaping an italian government of the 20, 1977 the stars and stripes Page 15
