Deep spending cuts spark Italian anger

Press, 10 January 1983, Page 8

Deep spending cuts spark Italian anger

NZPA-Reuter Rome Italy’s big three union federations. caught by surprise by a wave of spontaneous demonstrations against Government austerity measures, have called a series of regional strikes for this week to maintain the momentum of popular protest.

Union sources said that the movement’s leadership was divided over how to exploit the situation, but had agreed to call a general strike, probably on January 18. The general strike call was not confirmed in a statement by the three union federations in which the regional stoppages were announced.

Thousands of angry workers on Friday occupied main railway stations in Naples, Florence and other cities in protest against measures by the Government of Amintore Fanfani to impose sharp cuts in health and insurance services after a series of tax increases. In Venice there was a water-borne procession of ferries and gondolas and in Naples an ugly incident was

narrowly averted after. two policemen had fired their pistols into the air at an unofficial roadblock on a city highway. The Government’s policies have already meant higher fares and prices for a range of public services and utilities. “The politicians can go by car but the people have to

get on the bus,” one Roman said as he boarded a bus, on which the fare had just been doubled, to go to Fiumicino Airport.

Mr Fanfani's four-party coalition of Christian Democrats, Liberals, Socialists, and Social Democrats raised taxes on transport, housing and electrical goods last week.

Officials said that the moves had entailed sharp cuts in Government funding for health and insurance services and reductions in administrative spending. The measures were issued by decree and. must be ratified by Parliament within days. A proposed tax on the self-employed that has brought protests from middle-class Italians was not decreed, but placed before Parliament in the form of draft legislation. , The spending cuts and tax increases have created tensions in the Fanfani Government.

Mr Fanfani has insisted that the measures are necessary to cut inflation, now running at more than 16 per cent a year.