Andreotti plan

Press, 17 January 1979, Page 8

Andreotti plan

i NZPA-Reuter Rome, I The fragile Christian! (Democratic Government of; the Italian Prime Minister! I (Mr Guilio Andreotti) has! ! unveiled an ambitious three-1 (year plan aimed at reviving! Italy’s lagging economy. ( The plan calls for a reduc- . ed inflation rate (at present ; 12 per cent) and more jobs ' through huge investments in ; Italy’s under-developed : south. But it was not clear how far the programme would go ' towards meeting increased i criticism of the Government i by the Communist Party, 1 (one of five groups that give 1 | the Administration its!, (majority in Parliament. !<

| Neither was it clear what (Italy’s restive trade unions (would say to the proposal (for holding wage increases |to the level of inflation.* ( A forthcoming debate on (the plans was seen as a test (for the minority Government and for the Parliamentary pact agreed last year under which the Communists have been consulted about important legislation. They had not (been consulted since 1947. The plan revealed today would hold down non-pro-ductive Government spending and launch a war on tax-dodgers designed to raise the extra money needed to I cover the increased development expenditure.