BETTINO CRAXI - ITALY

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 06746637
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 5
• Document Creation Date: December 28, 2022
• Document Release Date: August 30, 2018
• Case Number: F-2016-01115
• Publication Date: August 3, 1983

Approved for Release: 2018/08/28 C06746637
�
Bettino CRAXI
(Phonetic: KRAHKsee)
Prime Minister-Designate
(since July 1983)
Widely known as an ambitious, aggressive,
and calculating politician, Bettino Craxi is the first
member of the Socialist Party (PSI) and only the
second non-Christian Democrat (DC) to head an
Italian Cabinet since World War II. (He leads a
five-party coalition government, which includes the
PSI, the DC, the Republican Party [PRI], th.:.
Liberals, and the Social Democrats.) His
designation as Prime Minister brings to five the
number of governments on NATO's "southern
flank" that arc led by Socialists. (The other four
are the administrations of Andreas Papandreou in
Greece, Francois Mitterrand in France, Mario
Soares in Portugal, and Felipe Gonzalez in Spain; all five have taken power in the past two
years.) Craxi stands firm in his support of
the Alliance, and on the basis of his past statements and actions (discussed later in this
paper), we do not expect him to institute major shifts in Italian foreign policy. One of the few
major areas of the world on which he differs with US policy is Latin America.
he disagrees with the US interpretation of the causes of that region's
problems and that he favors a political settlement there.
tO
ITALY
Head of a party that received only 11.4 percent of the vote in the June 1983 national
elections, Craxi was able to obtain the premiership, according to most press accounts,
because the DC could not form a viable coalition without either the support or the
abstention of the PSI.
That party may not be
able to avoid all responsibility for economic difficulties. however,
a majority of the government's economic portfolios will probably go to the DC.
Craxi is pragmatic and down to earth in his approach to
problems. in contrast to many other Socialists, who indulge in ideological cant. In addition,
Craxi will act like a government manager and will be willing to
negotiate and compromise as necessary to make his administration endure longer than its
predecessors iwhich have lasted less than a year, on the average).
The Road to the Top
Although Craxi was a protege of the late Pietro Nenni. the "grand old man" of Italian
socialism, he is only 49 and represents a generational change in the leadership of the PSI.
when Craxi took over the party leadership in 1976. the
PSI was suffering from factionalism, weak leadership, and a history of wavering between
alliances with the DC and the PCI. he has many of the talents of a
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born leader and in less than seven years gained control of the party apparatus by changing
party statutes and appointing his trusted aides to key party posts. In the process he discarded
the PSI's traditional leftist ideology in favor of what he called a moderate, pragmatic
approach more attuned to the needs of contemporary Italy He thereby
made the party into a political organization capable of playing an important role in the
country's governing proces
Craxi is respected by admirers and critics alike for his courage and determination to
get to the top some Italian
politicians dislike Craxi's tactics and are not convinced that he is fully committed to being a
moderate democratic alternative to the DC. Often accused by both supporters and critics of
being authoritarian, he describes himself as disciplinarian�a quality he attributes to his
German ancestry. his ambitiousness and what some view as his
dictatorial behavior in attempting to swing the PSI to the right have made him enemies both
in and out of the party. some politicians are afraid that what iicy view as his
penchant for seeking political advantage may result in his making opportunistic policy
changes.
Foreign Policy Views
INF
In December 1979 iespite the generally neutralist and
pacifist attitudes of PSI leftwingers, Craxi had been able to provide sufficient PSI support in
Parliament to commit Italy to participate in the NATO program to modernize its
intermediate-range nuclear forces (INF). In March 1983 the Italian press quoted Craxi as
saying that it was senseless to ask the United States to suspend its missile-basing
preparations as long as the Soviet Union was continuing to deploy SS-20 missiles. It was
nevertheless necessary, he continued, to be patient and prudent in arms control negotiations
with the Soviets, because in seekiag to prevert the use of nuclear weapons, one must always
keep in mind the alternativei I the
Prime Minister unequivocally supports INF deployment
deployment could be delayed even after the necessary bases
have been constructed.
however. that Craxi has assured his eoahtion whirrs that he is absolvtely firm on INF
clepioyment, the only possible threat to
deployment would come from Parliament where extreme-leftist fringe parties could push
for a debate and a vote on the issues.
The Pipelines
Craxi and his supporters have been
instrumental in prolonging the Italian Government's "pause for reflection" in the decision
on the Siberian pipeline project. This PSI stand has been based on
concern about Italian dependence on Soviet energy sources and about Soviet demands for
low-interest grants to finance the project. In additionl
he hesitancy on the Soviet project has also stemmed from the fact that many
PSI members stand to benefit financially from a gas pipeline deal between Italy and
Algeria.
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The Middle East and North Africa
Craxi believes that Italy should expand its economic and political
relations with the countries in North Africa and the Mediterranean basin. Friendly toward
Israel, he nevertheless publicly supports Palestinian participation in the Middle East peace
negotiations. He has also publicly supported Italy's agreement with Malta supporting that
country's neutrality.
Latin America
Craxi believes the United States focuses too much on
Soviet involvement in Latin America and not enough on what he views as the region's
genuine social problems. He has said this country fails to appreciate the potential for
instability inherent in lagging economic and social development, not only in Latin America
but also in other parts of the developing world.
The European Communities
Craxi has been a strong public advocate of European integration. He has
that Italy has not pursued its interests in EC and other regional and international
forums with sufficient initiative and aggressiveness.
Views on Austerity
In view of Italy's double-digit inflation rate, soaring budget deficit, rising
unemployment, and increasing labor costs, we believe that the most difficult problem facing
Craxi and his coalition partners is how to act in concert to tackle these problems. In their
public stands on such issues, the coalition parties can be roughly divided into two groups:
� The DC favors stringent anti-inllatiunary austerity measures even at the cost of jobs.
This view is supported strongly by the PRI and somewhat less strongly by the
Liberals.
� The PSI agrees that a ;Lb.� uf economic discipline is necessary but focuses more on
creating jobs and developing the economy than on controlling inflation. The Social
Demcierats tend to suviwnt this position.
Craxi has said publicly that it is necessary to bring Italy's inflation rate down to the
international level, but he and his advisers have been vague about their approach. He
claims that the traditional structural (built-in) deficit will in time correct itself
through the growth of economic activity. He says that the budget deficit can also be reduced
by blinging interest rates down and that lowered rates would in turn reduce the part of the
budget devoted to large interest payments on the debt. In his campaign statements, Craxi
said he favored increasing the penalties on tax evaders as a way of increasing revenues. His
economic program does not call for any further nationalization of industry: his emphasis has
instead been on making the public sector work more efficiently in its present form.
According to the Italian press, although the program of the current government is generally
opposed by the Communist Party (PCI), the leader of the influential, PCI-dominated
Confederation of Italian Labor has described the Craxi administration as a "new, positive
poiitial development."
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Attitude Toward the PCI
Italian biographers of Craxi say he has a deep-rooted distrust of the PCI apparatus that
dates back to 1948, when the Socialists, in alliance with the Communists, were decimated at
the polls. He has said openly that the great size and excellent organizational discipline of the
PCI would relegate the PSI to the role of junior partner in any PSI-PCI alliance.
any dealings that Craxi
currently has with PC1 leaders are intended only to appease leftist elements in the PSI and
to increase his leverage with the DC. Craxi has said
that the PCI has distanced itself somewhat from the Soviet Union, but not enough, in his
opinion, to be an acceptable governing partner for the PSI. He reiterated this point in a -
speech to PSI regional leaders in Genoa in March 1983. (Since assuming the PSI leadership,
Craxi has replaced the party's hammer and sickle emblem with a red carnation.)
Institutional Reform
Craxi made institutional reform a prominent issue in his electoral campaign, and he
placed at the top of his agenda proposals for direct election of the president and reduction of
the presidential term from seven to five years. Such changes, he said publicly, would
increase the president's role as a stabilizing force. Craxi has also stated publicly that he
favors reducing the number of parliamentary deputies, modifying the rules governing their
election, and reorganizing the functional responsibilities of the two chambers of Parliament
so that the Senate would have most of the economic and financial powers. He and his
colleagues have advocated restricting the use of the secret vote in Parliament, increasing the
powers of the prime minister, reducing the number of Cabinet ministers, and authorizing the
administrative regions in the country to raise some of their own revenues. We believe that
despite these ambitious plans, the instability of the Italian political system and the press of
other issues will prevent Craxi from implementing most of these reforms in the short term.
Early Life, Career, and Travel
Born in Milar., Craxi attended a Catholic boys' school for 13 years and, according to
Italian biographies of him, seriously thought of becoming a priest. These biographies
indicate that he was transformed from a potential activist cleric to a militant Socialist when
his father. a Socialist activist, was driven undergr:::::::: 11:.� :he Fascists. Craxi subsequent ly
became a law student and joined the PSI youth movement. He later became secretary of the
party's Milan Fruvinciai Fcdcradun and Lombardy Regional Federation. He was elected to
the PSI Central Committee in 1957 and to the party Directorate in 1965. He became
national vice secretary of the party in 1969 and national secretary in 1976.
A member of the Milan City Council from 1960 until 1970, Craxi served during those
years as the city's comptroller and later as head of its social welfare department. First
elected to the Chamber of Deputies in 1968, he later served on its Committees for Foreign
Affairs and for Emigration and as president of the PSI parliamentary group. A vice
president of the Socialist International, Craxi has, according to press accounts, used his
participation in S1 activities to enhance his standing as a political leader and to demonstrate
his credentials as a moderate, responsible Socialist.
Craxi has exchanged visits with Socialist leaders from Germany and France and with
Labor Party leaders from Great Britain. Within the past few years he has traveled to
Romania, Yugoslavia. Canada, Israel, Somalia, and Algeria: he has also vacationed in
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Tunisia, where it has been widely reported that he has a home. Craxi has made several visits
to the United States, including a trip in 1961 to attend the World Conference on Local
Administration in Washington and a visit the following year to Chicago to represent Milan
at a ceremony celebrating their "twin city" relationship. In both 1971 and 1975 hc was
recommended for an Educational and Cultural Exchange Program grant to visit the United
States but was unable to accept either time.
Personal Data
Craxi has written Socialism and Reality, Nine Letters From Prague, which deals with
the fall of Czechoslovak leader Alexander Dubcek, and Socialism From Santiago to
Prague. Acccording to press articles, he has expressed admiration for Giuseppe Garibaldi,
the hero of Italian independence; John F. Kennedy; and Salvador Allende. Craxi reads
French and says he draws much of his information on world events from the Italian and
French press; he has a limited knowledge of English. He has said he has little time for
hobbies but enjoys watching televised soccer games, playing the guitar, singing folk songs,
and reading works ranging from Hemingway to Dostoevsky.
Craxi, who is 6 feet, 3 inches tall, is an imposing figure. He regularly appears in public
in jeans, open shirt, and field jacket. A hard worker, he collapsed during the 1976 national
election campaign and was hospitalized for a short period.
Craxi is married to the former Anna Maria Moncini, who, he has said publicly, fully
shares his political, social, and humanistic ideals. (In his public statements he has said he
views women as hard working, determined, and full of intuition and imagination and favors
bringing more women into the PSI.) The Craxis have a son, Bobo. and a daughter, Stefania.
3 August 1983
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