The substance of a letter addressed earlier this month by the Italian Treasury Minister, Sr. Colombo, to the Prime Minister gives an alarming picture of Italy's economic situation. In his letter Colombo draws the attention of Sr. Moro to measures, the adoptionof which he considers vital and undelayable if the threat of economic collapse is to be avoided. The extent of the crisis is described in another part of his letter. He states that at the present rate, the deficit in the balance of payments by the end of the year, will amount to -1,700m, two thirds of Italy's gold and currency reserves. He expects the increase in Italy's gross national product for the whole of 1964 to anount to 4%, against an increase of the public's spendable income of not less than 16%.
Colonbo feels that the burden of stabilising the economic situation cannot be left almost exclusively, as has been the case so far, to the credit squee z. He wants a further limitation of public spending, increases in the prices of a number of public services, increased taxation, and predictably enough, a wage pause. He is also in favour of future wage increases, when they do occur, of being paid in part into a new investment fund, rather than going straight into wage packets. On May 29th, the Financial Times said: "It is thought (in Italy) that only the trade unions can save Sr. Moro's cabinet and the centre left experinent. If they were to agree to collaborate with the government in stabilising the economic situation by accepting a wage pause the government would have a new lease of life. Their willingness to do so, and even their ability to impose a wage pause on their adherents is open to doubt. Of the three main labour organisations, two- the Christian Democrat C.1I.S.I. and the Social Democrat U.I.L.- have indicated that they might be willing to help the government. But the vital attitude is that of the C.G.I.L. which is the largest of the three. The C.G.1I.L. is supported by the Communist and Socialist parties but is really controlled by the Communists".
The left in Italy thus faces a heavy responsibility. They can allow Moro's government to solve their crisis at the expense of the standardsof living of the working class. Or they can launch an all out offensive against any wage pause, and advocate the introduction of nationalisation and socialist planning as the only just solution to the crisis. Let us hope that they make the most of their opportunity.
THE WEEK Number 23 Page 3 ANTI-APARTHEID NOTES AUSTRALIAN DOCKERS' BOYCOTT MOVE
On June lst a mass meeting of three thousand Sydney dockers unanimously supported a move to impose a total boycott of all cargo to and from South Africa in protest oo apartheid.