Italian wage referendum, 1985

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A referendum on abolishing the wage escalator was held in Italy on 9 June 1985. [1] The escalator allowed for the automatic growth of the salaries of Italian workers at the same rate as inflation. This mechanism was accused of causing high inflation which damaged the lira during the 1980s, with a 20% annual rate. Voters were asked whether they wanted to repeal a law passed by the government of socialist Prime Minister Bettino Craxi which had strongly reduced this automatic mechanisms. The referendum was called by the Italian Communist Party. Those voting "yes" wanted to restore the automatic growth of the salaries as the inflation ratio, and those voting "no" wanted to retain the law which tried to reduce the high inflation.

Italy republic in Southern Europe

Italy, officially the Italian Republic, is a country in Southern Europe. Located in the middle of the Mediterranean Sea, Italy shares open land borders with France, Switzerland, Austria, Slovenia and the enclaved microstates San Marino and Vatican City. Italy covers an area of 301,340 km2 (116,350 sq mi) and has a largely temperate seasonal and Mediterranean climate. With around 61 million inhabitants, it is the fourth-most populous EU member state and the most populous country in Southern Europe.

Inflation increase in the general price level of goods and services in an economy over a period of time

In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. The measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation.

Italian lira currency

The lira was the currency of Italy between 1861 and 2002 and of the Albanian Kingdom between 1941 and 1943. Between 1999 and 2002, the Italian lira was officially a national subunit of the euro. However, cash payments could be made in lira only, as euro coins or notes were not yet available. The lira was also the currency of the Napoleonic Kingdom of Italy between 1807 and 1814.

Contents

The referendum was defeated by margin of 54.3% to 45.7% on a voter turnout of 77.9% out of 45 million eligible Italian electors, thus allowing the law to remain in force.

Voter turnout percentage of eligible voters who cast a ballot in an election

Voter turnout is the percentage of eligible voters who cast a ballot in an election. Eligibility varies by country, and the voting-eligible population should not be confused with the total adult population. Age and citizenship status are often among the criteria used to determine eligibility, but some countries further restrict eligibility based on sex, race, or religion.

Political party positions

Signatures and petitions for the referendum were collected by the Italian Communist Party. It found the support of the Proletarian Democracy and the Federation of the Greens on the left side, but also of the Italian Social Movement on the opposite faction.

Italian Communist Party communist political party in Italy (1943–1991)

The Italian Communist Party was a communist political party in Italy.

Proletarian Democracy political party in Italy

Proletarian Democracy was a far-left political party in Italy.

Federation of the Greens Italian political party

The Federation of the Greens, frequently referred to as Greens (Verdi), is a green political party in Italy. It was formed in 1990 by the merger of the Green Lists and the Rainbow Greens.

Between the opposition to the referendum, the Italian Socialist Party found the support of all its allies, mainly the big Christian Democracy.

Italian Socialist Party former Italian political party (1892–1994)

The Italian Socialist Party was a socialist and later social-democratic political party in Italy. Founded in Genoa in 1892, the PSI dominated the Italian left until after World War II, when it was eclipsed in status by the Italian Communist Party. The Socialists came to special prominence in the 1980s, when their leader Bettino Craxi, who had severed the residual ties with the Soviet Union and re-branded the party as liberal-socialist, served as Prime Minister (1983–1987). The PSI was disbanded in 1994 as a result of the Tangentopoli scandals. Prior to World War I, future dictator Benito Mussolini was a member of the PSI.

Results

ChoiceVotes%
For repealing the law15,460,85545.7
Against repealing the law18,384,78854.3
Invalid/blank votes1,113,761
Total34,959,404100
Registered voters/turnout44,904,29077.9
Source: Nohlen & Stöver

The referendum was considered a major victory for the Italian Socialist Party and its leader Bettino Craxi, but it caused a dramatic split into the Italian left, the Communists accusing the Socialist to be sold to the business owners.

Bettino Craxi Italian politician

Benedetto "Bettino" Craxi was an Italian politician, leader of the Italian Socialist Party from 1976 to 1993 and Prime Minister of Italy from 1983 to 1987. He was the first member of the PSI to hold the office and the third Prime Minister from a socialist party. He led the third-longest government in the Italian Republic and he is considered one of the most powerful and prominent politicians of the so-called First Republic.

Left-wing politics supports social equality and egalitarianism, often in opposition to social hierarchy. It typically involves a concern for those in society whom its adherents perceive as disadvantaged relative to others (prioritarianism) as well as a belief that there are unjustified inequalities that need to be reduced or abolished. The term left-wing can also refer to "the radical, reforming, or socialist section of a political party or system".

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References

  1. Dieter Nohlen & Philip Stöver (2010) Elections in Europe: A data handbook, p1048 ISBN   978-3-8329-5609-7