ITALY: The Italian Prime Minister, Mr Silvio Berlusconi, and President Carlo Azeglio Ciampi seemed to be on a collision course yesterday following the President's refusal to sign a controversial media bill which, according to its critics, would see the Prime Minister's Fininvest group extend its already considerable media influence.
In an unusual move on Monday, President Ciampi sent the so-called "Gasparri Law" (named after the Communications Minister, Mr Maurizio Gasparri) back to parliament for further consideration.
In a detailed analysis which makes references to several Constitutional Court rulings, the President argued that the bill failed to guarantee greater media pluralism and might lead to the formation of dominant market positions, especially in relation to advertising revenue.
At the heart of this political row is the quintessential Berlusconi "enigma", namely the Prime Minister's conflict of interests between his role as head of government and that of owner of a media empire with three nationwide commercial TV channels, claiming a 45 per cent audience share.
Critics of the "Gasparri Law" argue that it is tailormade for Mr Berlusconi since it eases limits on both media ownership and advertising revenue.
In effect, if passed, the law would allow the Prime Minister's Mediaset company to control another three TV channels as well as national newspapers and would also permit Mediaset's advertising arm to increase its annual revenue by 50 per cent or an estimated €750 million.
Furthermore, the proposed legislation calls for the gradual privatisation of Mediaset's main market rival, the state broadcaster, RAI, and also revokes the provisions of a 1997 law which ruled that Mediaset must transfer one of its three channels, Rete 4, from terrestial to satellite broadcasting by December 31st.
Speaking in Strasbourg yesterday, Mr Berlusconi sounded a defiant note regarding the President's refusal to sign the bill, suggesting that his government would introduce a decree to save Rete 4.
"I haven't yet read the expert analysis from the President's office and I won't be reading it either. It's possible that there'll be a government decree to save Rete 4. I don't think it is facing any risk in this matter," he said.
Political commentators suggested yesterday that Mr Berlusconi might call on his deputy, Mr Gianfranco Fini, to sign the government decree, thus delaying the transfer of Rete 4 until parliament reconsiders the bill.
Parliament can now amend the bill, according to President Ciampi's observations, or vote on the law again without making any changes.
If the bill passes both houses a second time, then President Ciampi is constitutionally obliged to sign it into law.