ABSTRACT

The alternative between economic warfare and detente in regard to relations with the USSR and Eastern European countries has been neither a subject of heated ideological debate nor a cause of serious conflicts of interest on Italy's political, economic and business scene. As a matter of fact within the framework of the Western defense and alliance structure, Italy is in a class of its own. The deterioration of political relations between Italy and the USSR after the Soviet occupation of Afghanistan impaired the development of bilateral economic and trade links only to a fairly limited extent. The Italian government was, however, adamant in the refusal to enter into new agreements with the USSR for the concession of fresh credit lines, although supplier credits continued to be extended. The principal employers' body in Italy is Confindustria which comprises territorial and trade associations, regional federations and branch groupings, and has traditionally played a significant role in Italy's economic and political life.