JPRS ID: 10316 WEST EUROPE REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000500030025-6
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 34
• Document Creation Date: November 1, 2016
• Sequence Number: 25
• Content Type: REPORTS

APPROVED FOR RELEASE: 2447/02/09: CIA-RDP82-00850R000500434425-6
- FUR ONFICIAI. USE ONLY
JPRS L/ 10316
10 February 1982
u ro e R~ o rt
West E p
p
CFOUO 8/82)
FBIS FOREIGN BROAD~AST INFORMATION SERVICE
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000540030025-6
NOTE
JPRS publications contain informatinn primarily from foreign
newspapers, period~.cals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the orig~~la1 phrasing and
other characteristics retained.
Head:.ines, editorial reports, and material enclosed in brackets
are supplied by JPRS. Processing indicators ~uch as [Text]
or [Excerpt] in ~he first line of each item, or following the
last line of a brief, indicate how the original in~ormation was
processed. Where no processing indicatoc is given, the infor-
~ mation was summarized or extracted.
_ Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.
The contents of thi.s publication in no way represent the poli-
cies, views or attitudes of the U.S. Goverument.
COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF
MATERIALS REPRODUCED HEREIN REQUIRF. THAT DISSEMINATION
OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONI.Y.
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2407102/09: CIA-RDP82-00850R000500430025-6
FOR ~FFICIAL USE ONLY
JPRS L/10316
10 February 1982
WEST EUROPE REPORT
~ (FOUO 8/821
CONTENTS
ECONOMIC
ITALY
- Fiat's Romiti on Industry's Prospects for '82
(Cesare Romiti Interview; PANORAMA, 11 Jan 82) 1
SPAIN
y Econouiic Conditions Expected To Improve in 1982
(CAMBIO 16, 16 Nov 81) 7
Reduced Hydroelectric Power Causes Increases in Oil Imports
(CAMBIO 16, 21 Dec 81) 10
POLITICAL
I TALY
Parties' Opinion4 on Poasible Early Elections
(Roberto Ippolito, Paolo Passarini, IL MONDO, $ Jan b2).... 14
MILITAIL"
FRAN CE
General Describes Mirage's Flexibility, Role in Air Defense
- (Bernard Capillon; AIR ET COSMOS, 12 Dec 81) 19
_ - a - [III - WE - 150 FOUO)
FOR OF'FIC[AL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000500030025-6
FOR (DFFIC'IAL U~F ONI.Y
Briefs
New Military Radar Equipment ~4
GENERAL
I TALY
Polemics Within the Intelligence Servicea
(Gianni Rossi; IL MONDO, 8 Jan 82) 25
PSI'a Ando Calls for Reform of Security Servicea
(Salvatore Ando Interview; PANORAMA, 11 Jan 82) 28
- b -
~ FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6
FOR OFFICIAI. USE ONLy
- ECONObiIC ITAI,Y
FIAT'S ROMITI ON INDUSTRY'S PROSPECTS FOR '82
Milan PANORAMA in Italian 11 Jan 82 pp 80-82
[Interview with Ce:sare Romiti, managing director of FIAT, conducted by
Giuseppe Oldani, date and place not given]
[Text.J The pie has shrunken. "We are in a recession," says
FIAT~s mena~in~~ director. And Italian industry will
ask for more sacrifices to enable it to mudernize:
f~ om the unions, askin~ them to be more flexible in
~ upcoming contract negotiations, and from the govern-
ment, asking it to reduc~ interest rates.
Once upon a time there was a myth that held that the word "layoff"
would henceforth be stricken from the Italian language.
, Once upon a time there was another my~h, the one tilat said the state
should always be willing to bail out private industry when it got into
~rouble, then go on losing its own money without too much pain.
And thPn there was the myth th:~.t said it was always a good idea to in-
cur debt rather than finance y~~ur investments yourself, since every-
body knows that inflation is m~~st helpful ta the man who flings him-
self into debt up to the neck, with the help cf friendly banks.
_ Now, almosL- overni~;ht, all L-he:ce cer~ainties that since 1969, since
t,liosc mont-hs of Lhe hot autumn; all of us witho~zt exception poli-
~icians and unioii memUrlrs, indi_strialists and bankers had held so
dcar~, have suddenly vanished ii the face of a crisis that has somehow
bccome a structur~al ~iven, fa~her than a passing twinge.
In short, the comb has hit the snarls. But has the comb got all of
� them? Or are there still some nasty surprises in store for us?
PAivTORAMA asked that question of Cesare Romiti, managin~; director of
FIAT.
Question: The government's ir.tervention in production through pri-
ma~rily state-owned companies is going through a period of stagnation
and there ~tre even those who talk of opening them up to private in-
vestment, either throu~h joint ventures or through transfers. Why,
in your opinion, is this phenomen~n growing in Italy now, while in
1
FOR Ol~ F[CIAL U5E ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2007/42/09: CIA-RDP82-00850R000500030025-6
- H'OR OFFI(~iAt. USE ONLY
f'raiicc a 5ociali5t; ~ov~~riuneiit tias drawn up a plan of action which pro-
m:itic.5 precisely thc opposite? And wtiat will be ttie impact of these
disparate philosophies on the economies of- our two cou.ntries or, �oi
that matter, on the rest of Europe?
Ar..swer: l~ven so, it needs pointing out that the beginning of this de-
cade, in all industrial systems, brin~s to light widespread and far-
- reachin~ processes of r~eadjustment to cope with changing conditions
in the area of competition. One need only consider the slowdown in
growth, the growing costs of energy and raw materials, the entry into
the world markets of new and extremely aggressive rivals (several
Asian countr~ies, Japan at the head of the list, followed by the devel-
, opinb countries), the profound tectinological revolution, and the on-
going changes in the qualitative makeup of the labor supply.
The glib couplin;s (I am referring to some literary works that would
lump Italy and Grcat [3ritain together as "the sick men of Europe"),
like the contrasts ("thc disparate philosophies" define for you the
aspects of the policies coming aut of Rome and Paris), I thir~k may
t~arn out to be misleadin~. Particularly if, as we duly duly mark down
the predominant political valences o� the individual countries, we ne-
~lect to make due allowance for i;he cultural and economic hinterlands
of these countries. Naturally, the countries which in the early half
of' the Sixties had lower productivity rates must make up for lost
- time and therefore are called upon to work more decisively ar.d more
rapidly if they do not want to widen the gap that already separates
them from the more advanced countries. Italy is certainly among the
~ former but only just lately has there been broadening awareness of
- this fundamental requirement. Even so, it seems to me we can arrive
at a least common denaminator for Europe: behind the plant walls there
is a trend toward increasin~ and improving efiiciency, introc.uci.ng mo-
dif ications in joh organization and in the productive processes, whose
aim is to cut unit costs of product.
- Insofar as Italy is concerned, there has thus far been a shortage of
poliL-ical initiaL-ive, a lack which I should call ~ritical., not only
� with respect i;o our~ country's backwar�dness, but also in view of what
- has been happeni:~g of recent years in the countries that are our com-
petitors. Even so, t,here are some encouraging signs on the horizon.
Or: ~ of them is certainly tlie declarec~ determinatior. to orient state-
- j~articipation indust-ries toward efficiency and competitiveness~ by
takin~; the requisite measures for streamlining, including whatever
cuts in the payroll may turn out to be needed.
Question: Another of the myths that seems to be wobbling is the one
~ about job security in big corporations. Starting with FIAT~s decision
back in 1980 to deal with the Iabor productivity snarl by means of mass
layoffs, and ri~ht up to the recent plans of the state-participation
sector to reduce the number of jobs in sectars like chemicals, steel,
electronics, and automobile manufacturing, we have had a succession of
decisions that have long been put off and which ten3 either to restruc--
~ ture their employment base along leaner lines, and/or to boost the
productivity of what workers remain in the plants. Why are we only
2
FOR OFFICIAL USE ONLY
APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500030025-6

APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000500034425-6
I~OK O1~1~1('IAi, l!~r, O~I.V
1
now be~;innin~ to d~:al ti~~ith this problem'? And what basic impacl; will
ii. liave on the co.~ritry' S growth over the next few years?
Ar.swcr: Itali.an industry stands in ur~ent need of a competitive sp~zri;.
We are in the mic?st of a recession: the "pie" is smaller and we can-
not afford to waste e~ren a crumb , bearing constantly ~n mind the a~-
~ressiveness of our new cornpetitors, who nave moved in amor~g tlzose ti�re
mieht call the traditional ones.
When you are i.i an espandinh market situation, the proper response i.s
to expand the volume of production. At the same time, you feel l~ss
pressin~ need to monitor the level oi efficiency. However, I believe
- thcre i5 no cioa~;in~ the fact th~?t FIAT, even in the second half of the
~ixtics whc,n, for example, the :~utQmobile market was boomin~, did not
flinch i'rom alErtin~ mana~~ment and labor to the dangers of neglectinp
pr�oductivity prot~lems.
- t3~rt it is precisely during hard times, like the ones we are goi_ne
t}irou~h iiow on a dlobal scale, t,hat it is "real" employment, b~- wliich
I mean productive emp~oyment, tl~at counts, because only From that kind
_ oP jobs can we cira~� tt~e resources necessary ~o implemer~t a soci~~l. po-
licy to help the unemployed, and, above all, to sti:~ulate new prociur.-
tivc~ ~ctivity and thus, do~.~n the road, create new jobs.
Qu~stion: Yet another profound altc~ration in the world economy seems
to affe~ct relations between iridustrial power and ,`.inanci.al ~ower.
Whereas in the past the fortunes of the ~reat entrepreneurial fami]_=ies
- were built on plants, today thF~ feelin~ noted by many observers is
that accumulation of wealth depende far more than it used to on fin-
ancial ana real es~ate operations. Just how accurate is this ini,er-
pretation? And what ^ffects will it have on power relationshi.ps in
Italy?
An~wer: 'Che cur~rent economic recession has two aspects: one transi.-
tary, and the ~:`:1('T~ structur~?l. Iii Ital.y it is hard to see just wllerc
the boundary lics beteti~cen t}iese two aspects, because thcy get entan~;-
led and sometim