ITALY’S ECONOMICS

Otago Daily Times, Issue 26627, 25 November 1947, Page 5

ITALY’S ECONOMICS

WIDESPREAD UNEMPLOYMENT OPPORTUNITY FOR POLITICAL AGITATORS N.Z.P.A. Special Correspondent LONDON, Nov. 23. Reviewing the economic and social conditions in Italy, the Financial Times says: “ The economic conditions are providing fertile ground for political agitators. Bread at 2s a lb .on the black market when other rations are scarce does not promote social tranquility. The ills of Italian economy have been accentuated by a bad .grain crop, failure of the sugar beet crop, and the fact that, although imports have returned to their pre-war levels, exports are still lagging far behind. With 1,500,000 workers registered as unemployed.' Italian political troubles may well become worse should the industrial and food positions further deteriorate.

“Italy has lost the German market as a supplier of coal, machinery, and chemicals, and as a consumer of Italian fruit and vegetables. Britain has so far been unable to export either coal or machinery to Italy, and the operation of the convertibility restrictions has brought Italian export trade with this country almost to a standstill.” The Financial Times considers, however, that some improvement is to be expected now that the peace treaty has been ratified and Italy can begin to re-enter world trade. Argentine has granted her a substantial loan, and high hopes are placed on American aid.

Given more capital and consumer goods, but above all a firm Government which will organise the Italians to help themselves, the outlook is by no means hopeless.