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Corruption row threatens Italian presidency of EU
From Richard Owen in Rome and Rory Watson in Brussels

A FULL-BLOODED Italian political row echoed across Europe yesterday as the Italian Prime Minister and the President of the European Commission traded accusations of corruption.

In court and the Italian media Silvio Berlusconi and Romano Prodi, champions of the Right and Left respectively, are determined to discredit each other ahead of what is expected to be a dramatic confrontation in Italian elections due in two years’ time.

The row raises the prospect of an uncomfortable six months for the European Union, with the likelihood of the two men clashing during Italy’s presidency of the Union, which begins on July 1.

Signor Prodi and Signor Berlusconi are due to meet at the Salonika summit on June 20, as Italy prepares to take over the EU presidency from Greece. A breakdown in trust between the European Commission and the country holding the presidency would make it almost impossible to conduct business.

Signor Berlusconi’s lawyers presented a court in Milan yesterday with renewed claims by a businessman, which they said showed that Signor Prodi had acted illegally in a business transaction. Il Giornale, the Milan newspaper that is part of Signor Berlusconi’s media empire, gave a page to the allegations.

Signor Prodi’s office in Brussels issued a rebuttal. Signor Prodi said that he was not a party to the Milan case, or any other, and had nothing to hide. He would “not usually have any reason to intervene”, but had never avoided his duty to “give an open and complete account of my actions”.

On Monday Signor Berlusconi unexpectedly criticised Signor Prodi during his appearance in court in Milan, where he is on trial for alleged bribery of judges in the privatisation of a state-owned food company in the 1980s.

Signor Berlusconi said that in 1985 he had been asked by Bettino Craxi, then the Prime Minister, to step in as part of a consortium with the food companies Barilla and Ferrero. The aim was to prevent Signor Prodi, who was then chairman of IRI, the state holding company, selling off the food giant SME at a “below-market” price to Buitoni. Buitoni was owned by Carlo de Benedetti, a rival entrepreneur.

In an editorial Corriere della Sera said that the revival of the antagonism between Italy’s foremost statesmen could not have come at a worse time. Signor Berlusconi, who came to office two years ago after soundly defeating the Centre Left, has previously attacked the country’s magistrates via his lawyers for their “left-wing bias” in conducting a “witchhunt” against him.

Giving the impression that he had more important matters to attend to, Signor Berlusconi had claimed until this week that he had as much chance of being convicted as he had of “becoming a communist”. As a last resort, he had hoped to reintroduce parliamentary immunity, which was abolished in 1993.

Aides said, however, that Signor Berlusconi was shaken last week by the conviction of Cesare Previti, one of his lieutenants, in a parallel corruption trial in Milan. Signor Previti was given an 11-year sentence, subject to appeals.

An incandescent Signor Berlusconi told advisers that he now realised that there was a real possibility that he, too, would be sentenced. He vowed to go on the offensive to avoid being brought down by corruption charges, as he was in 1994.

His lawyers have called 1,800 witnesses, including many of Italy’s most senior politicians, in what La Repubblica called a threat to “bring everyone else down with him”.


Or this...


French under fire for shunning EU law
By Ambrose Evans-Pritchard in Brussels (Filed: 06/05/2003)

The European Commission accused the French yesterday of a "lamentable" record in enforcing European Union law and pledged tough action to bring member states to book.

Despite being zealous advocates of closer European integration, the French are facing 220 open cases involving systematic violations of EU laws and are guilty of the most flagrant foot-dragging of any EU state when implanting new rules.

The long list of violations include a refusal to obey the law on biotech patents, for maintaining an illegal ban on food additives, and using obstructionist measures to prevent lawyers from other EU countries working in France.

France has also failed to enforce fishing controls aimed at saving endangered stocks. Struggling British trawlermen enjoy no such leniency from their own inspectors, and a growing number face bankruptcy trying to comply with the rules.

In many instances, the commission has already won the case in the European Court but has to launch a second set of proceedings under the EU's tortuous system before fines can be imposed.

Jonathan Todd, the Commission's spokesman, said the policy of "naming and shaming" offenders had not worked, and so tough new measures would be unveiled this week. "Some member states tend to be more thick-skinned than others. The French performance is lamentable," he said.

Italy and France top the list of law-breakers, but Greece and Belgium have an even worse record in proportion to their size and economic diversity. All four are traditional backers of a stronger EU, while eurosceptic Nordic states are the most dutiful in obeying the law.

However, the commission said Britain is no shining example either, clocking up 121 open infringement cases. "It's very disappointing. One would expect better from the UK, given that they so often claim they're the only one playing by the rules. In some respects, Spain is doing better," said an official.

Britain is facing possible court action for its harsh treatment of "booze cruise" travellers returning from the Continent with supplies of cheap French wine and Belgian cigarettes.

Under EU law, travellers can bring as much alcohol and tobacco as they want into Britain so long as it is not for illicit resale. Frits Bolkenstein, the single market commissioner, has accused customs officials of treating law-abiding citizens as if they were criminals, in some cases impounding and selling their cars.

"Cross-border shopping is a fundamental right under EU law and should not be regarded as a form of tax evasion - even if it does result in revenue losses for the UK," he said. Britain is also being investigated for alleged failure to ensure that Lloyd's of London is, and has been, regulated in accordance with the European Union's insurance law.

If the commission and the European Court conclude that Lloyd's of London has not been audited properly over the past two decades, the Government could face huge negligence claims from out-of-pocket Names.
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