FINANCIAL CRISIS IN ITALY

Dominion, Volume 36, Issue 269, 9 August 1943, Page 5

FINANCIAL CRISIS IN ITALY

Fascist Way Denounced LONDON, August 6. Italy is facing a financial crisis. The State accounts show a vast deficit and the Minister of Finance, Signor Bartoliui. has appointed u special commission, which has asked that severe steps be taken immediately to save the economic life of the country. Rome radio quoted a report by Bartolini, which said: “Italy’s financial situation is very grave, and the Treasury's position is becoming constantly more serious. The enormous increase in recent war expenditure lias assumed a dangerous character, and may lead to inflation and the destruction of the lira, with unfavourable consequences. In the last fiscal year the Treasury has been forced to borrow heavily from the Bauca d’ltalia, and it will be necessary to issue loans to curb inflation. "The situation is made graver because in the last few years there has been no regular market for State funds. _ Even official prices do not give a fair indication of the real trend of dealing. Drastic Retrenchments. “If. is imperative to exercise drastic retrenchments. Little improvement can be hoped for from direct taxes, because the country is already crushed by taxes whicll are too heavy. For many years the Government has not published any Budget or return so that even experts have not a. clear idea of the economic situation in Italy. All this has been for the worse. I intend to make regular and frank publication of nil returns.” Besides retrenchments, Bartoliui recommended the opening of the Bourse and the winding up of many State holdings ui private concerns. The .Minister said that the savings of the man in the street were sacred and would be defended to the last. Bartoliui placed the Italian deficit ut. £B9O 629.934 (on the basis of the prewar value of the lira at 2Jd.). It is stated that the circulation of Italian bank-notes on July 21 wan 96,541,000,000 lira, compared with 25,344,000,000 lire in 1940.