ALL EYES will be on Italy’s business capital Milan this morning, for more than one reason. Politicians and market analysts alike will be watching Milan’s stock exchange closely in the expectation that the extraordinary alacrity with which both houses of parliament approved a €48 billion austerity package in eight hours last Thursday and Friday has reassured bond and equity markets.
Also watching will be Italian prime minister Silvio Berlusconi, who is expected in the city this morning for different reasons. His lawyers say he will attend a hearing of the “Mills” case, in which he stands accused of having paid a $600,000 bribe to English lawyer David Mills in return for “reticent” testimony during two major trials in the 1990s involving Mr Berlusconi’s Fininvest group.
A technical hearing of the “Rubygate” trial, in which Berlusconi is accused of abuse of office and exploitation of underage prostitution, is also scheduled. At today’s hearing, the court is expected to consider a series of objections lodged by the defence, in particular in relation to jurisdiction.
Mr Berlusconi’s lawyers argue that the underage prostitution charge should be heard in a court in Monza since the alleged offences took place at his Arcore residence in the province of Monza. With regard to the charge of abuse of office, the defence argues that on the May night last year when the prime minister rang a Milan police station to advise the release of “Ruby”, Karima El Mahroug, who was held on theft charges, he was doing so not as a private citizen but rather in his role as prime minister. Therefore, he should be tried not by a Milan court but rather by the Tribunal of Ministers, effectively parliament.
The court may also take cognisance of the fact that on July 6th the constitutional court, following a vote in parliament, agreed to examine the question of which court has the right to hear the case. A decision is not expected until the end of the year.
Mr Berlusconi also features in the “Unipol bank” court case due to be heard in Milan tomorrow, in which he is accused of having broken court secrecy by leaking the transcript of a 2005 wiretap that initially seemed incriminating for then centre-left opposition leader Piero Fassino.
Arguably the most delicate moment of the week for the government will come on Wednesday, when parliament is due to vote on a request from public prosecutors for the arrest of People of Freedom (PDL) deputy Alfonso Papa. The outcome remains highly uncertain; defeat for Mr Berlusconi, who has strenuously argued against the arrest, could have serious consequences.