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Craxi was the Prime Minister of Italy from 1983 to 1987, and head of the Italian Socialist Party from 1976 to 1993. He has long been the longest-serving Prime Minister in Italy since 1945. He had strong influence in Italian politics throughout the eighties; for some time, he was a close ally of two key figures of Democrazia Cristiana, Giulio AndreottiGiulio Andreotti (born 1919) was an Italian political figure. He served as the prime minister of Italy seven times, his terms were: # 17 February 1972 26 February 1972 # 26 June 1972 12 June 1973 # 29 July 1976 16 January 1978 # 11 March 1978 31 January 1 and Arnaldo ForlaniArnaldo Forlani (born December 8, 1925) was Prime Minister of Italy from October 18, 1980 through May 26, 1981. He was born in Pesaro. He was a member of the Italian Christian Democratic Party. He was first elected to the chamber of deputies in 1958 and s, in a loose cross-party alliance often dubbed CAF. He had a firm grasp on a party previously troubled by factionalism, and tried to distance it from the communists bringing it closer to Christian Democrats and other parties; his objective was to create an Italian version of Socialist parties like the German SPD or the French Socialist Party. The party reached its apex when it increased its share of votes in the general election of 1983, after temporarily abandoning its coalition with the Christian Democrats. However, the Italian socialist party never outgrew the much larger Italian Communist PartyThe Partito Comunista Italiano (PCI) or Italian Communist Party emerged as Partito Comunista d'Italia or Communist Party of Italy from a secession by the Leninist comunisti puri tendency from the Italian Socialist Party (PSI) during that body's congress o, whose highly charismatic leader, Enrico Berlinguer, was a fierce adversary of Craxi's policies throughout the years.
The main dynamic of Italian post-war politics was to find a way to keep the PCI ( Partito Comunista Italiano) out of power. This lead to the constant formation of political alliances between parties keen on keeping the Communists at bay. Things were further complicated by the fact that many parties had internal currents that would have welcomed the Communist in the government coalition; in particular, within the DC, Democrazia Cristiana ( Christian Democrats), the largest party in Italy from 1945 to end of the " Prima Repubblica ".
Craxi was precocious and ascended to many levels public office at very early ages. In the international arena, he helped dissidents and Socialist Parties throughout the world organise and become independent. Notable recipients of his logistical help are the PSOE "Partido Socialista Obrero Espaņol" during Franco's dictatorship and dramaturg Jiri Pelikan in the then Czechoslovakia. A rare footage of Craxi trying to lay flowers at the tomb of Salvador Allende has been unearthed from RAI's (RAdiotelevisione Italiana) archives.
On 16 July 1976, Bettino Craxi was elected to the vacant secretarys position, following years of factional fighting within his party. Ironically, the "old guard" saw him as short-lived leader, allowing each faction time to regroup. However, he was able to hold on to power and implement his policies. In particular, he sought and manage to distance his Party away from the communists bringing it closer to Christian Democrats and other center and center-right parties.
During Craxi's prime-ministership, Italy become the fifth largest industrial nation and gained entry into the G-7 Group of most Industraliased nations. Inflation was however often two-digit, and this was dealt with eliminating a wage-price increase link known as scala mobile ("escalator"); under this system, wages were increased automatically depending on inflation. Abolishing the system did reduce inflation, but inevitably increased strikes in the long term, as workers have to barter for better salaries. In any case, the victory of the "No" front in the abrogative referendum called by the Italian Communist Party was also a major victory for Craxi. Italian national debt skyrocketed during the Craxi era, passing 100% of the gross national product. The level of the Italian national debt is still today well over 100% of the GDP.