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| The Regulation of the Economy Like many countries that underwent reforms after the 1930s, Italy had inserted in her Republican Constitution several principles dealing with economic aspects, believing these to be a fundamental element of the State. By making a rough classification, it can be said that the country is based on four types of economic principles: those inherent in the productive role of the citizens, those concerning wealth, those favouring particular fields of production and those regulating public intervention. The productive role of the citizen can be seen from different points of view. One version claims that the Italian Republic is founded on work (Article 1); another obliges public powers to stimulate employment and safeguard it at all levels (Article 35); and yet others guarantee the fundamental rights of workers, concerning equal pay for equal effort, hours of work, weekly and annual paid holidays, equality between the sexes at work, minimum working age, pensions and workers' participation in management (Articles 36, 37, 38 and 46, second clause). The Constitution also provides social assistance (Article 38, first clause) for those citizens who are unfit for work and without private means. The private Property The regulation of wealth - its acquisition, possession, enjoyment and circulation - is subject to strict controls, whether in public or private ownership. The latter has legally recognized and guaranteed limits so as to ensure general accessibility and accountability (Article 42). Private property, as sources of energy or fuel producing firms or those providing essential services, may be transferred into public ownership on the grounds of national interest with the payment of an indemnity (Articles 42 and 43). Several types of productive activity received particular protection in the founding charter, where was established the limit between private freedom of initiative and collective interest (Article 41): small and medium agricultural proprietors, the direct cultivation of funds by proprietors, co-operation for productive ends and craftsmanship. Savings were also the object of special provisions to encourage and protect them, given their recognized ability to widen the bases of production, distribute benefits and work and compensate for the social dangers present in heavily industrialized economies (Articles 44, 45 and 47). The supply of Credit Further specifications of the governing rule of economy can be mentioned such as those concerning the regulation of ownership, working capital and compulsory acquisition. A further element to complete this outline is the specification that the central authorities discipline, co-ordinate and control the supply of credit, which forms one of the economy's keystones. Such power is exercised through the Ministro del Tesoro, Comitato Interministeriale per il Credito ed il Risparmio, Governatore della Banca d'Italia and the central institutions of credit. It can therefore be said that the economic constitution of Italy is supported on the following key elements: a mixed economy system for ownership and initiatives, central planning entrusted to public authorities, private enterprise encouraged by a series of guarantees, extensive protection for workers, all of which are aimed at the creation of equally distributed public wealth. |