Italian trade union leaders last night resumed their talks with Prime Minister Andreotti for the second time in two days.
Italian trade union leaders last night resumed their talks with Prime Minister Andreotti for the second time in two days. The talks are aimed at reaching a compromise on reducing labour costs, the main obstacle to a vital international monetary fund loan for the country. The IMF credit of 530 million dollars is tied to though conditions including a brake on the device by which wages rise automatically with the rise in living costs. The unions of course are adamantly against this idea and have urged for other solutions in an effort to cut down about costs.
Meantime, the Minister of the Treasury, Gaetano Stammati flew yesterday to Washington to convince IMF officials to soften their conditions.
Union leaders were to meet today to decide what answer to give the government after last nights discussions during which the government urged a compromise solution - basically the way in which increases in cost of living index are calculated.
Italy badly needs the IMF credit not only to shore up the economy but also as a sign of international faith in the Italian Economy. If the IMF decides to give credit it would indicate that the Italian economy is expected to make a recovery. The future of the Andreotti government rests on the outcome of these talks since the government is expected to fall if the IMF loan is not granted.