Arguing for a worldwide perspective: Italy and the reform of the international monetary system between transatlantic cooperation and European integration (1971–73)

Abstract

The end of the Bretton Woods system, following the US decision of August 1971, and the simultaneous re-launch of the European integration with the enactment of the Werner plan came at a critical moment of internal weakness for Italy. This article highlights how the Italian government and the monetary authorities – while not always on the same wavelength – tried to tackle these challenges with a view to preserving the principles of multilateral cooperation that had promoted the country's recovery in the post-war years. By launching the project denominated ‘Global Approach’ in the summer of 1972, Italy tried to interconnect the modification of the Werner plan with the reform of the international monetary system within the International Monetary Fund (IMF) in order to restrain the growing trends towards unilateralism. However, despite all efforts, both initiatives were doomed to failure while the country entered a dramatic period of political instability and social unrest.