Prime Minister Giulio Andreotti, Christian Democrat leader of a minority government today met with his cabinet to prepare with them a report to Parliament on the state of the Italian economy.
cabinet ministers arriving for the meeting with Prime Minister Andreotti, after meeting Budget minister Tommaso Morlini commenting on the report approved by the cabinet which will be read to Parliament later today.
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Background: Prime Minister Giulio Andreotti, Christian Democrat leader of a minority government today met with his cabinet to prepare with them a report to Parliament on the state of the Italian economy.
The report says that in 1976 there was a balance of payments deficit of 2,380,000 million lire calculated on the basis of transactions; this compares to a deficit of lire 361, 400 million in 1975.
The gross national product increased by 5.7% compared to 3.7% in 1975. Wages increased 22.% in 1976 in monetary terms though only by 4.per cent in terms of buying power.
The lira was devalued by 17 percent in 1976 and unemployment increased.
The Senate has today approved a decree which will red increased in labour costs. This is the compromise agreement proposed by the government and which union leaders approved yesterday. It will clear the way for a 530 million dollar loan from the IMF.
Prime Minister Andreotti in a speech to the Senate last night, in an attempt to have the law approved said that without credit italy "would plunge into collective bankruptcy."