Silvio Berlusconi, former prime minister of Italy, was convicted on Thursday as a result of an illegal wiretap and was sentenced to one year in jail. Berlusconi, who asserts his innocence, appeals the sentence and will remain free for the time being. Currently, Berlusconi is also appealing his conviction in a tax fraud case for which he was sentenced to a year in jail last October. Berlusconi also faces charges for allegedly paying for sex with an underage prostitute.

In this case, Berlusconi was found guilty of a breach of confidentiality for the leak of a wiretapped call in a newspaper in 2005. The call was between a political opponent and a police officer, and it involved a bank takeover. Berlusconi’s brother, the publisher of the newspaper in question, received a sentence of 2 years and 3 months in jail after being convicted of the same offense. The newspaper, il Giornale, printed the transcript of the wiretapped communication. Berlusconi has said he expects convictions in his tax fraud appeal and prostitution case, citing judicial persecution that arises during pivotal times in Italy’s history. The former prime minister’s defense counsel and political friends has levied similar accusations. Angelino Alfano, the leader of the People of Freedom party, claims that the court’s decision is an effort to marginalize Berlusconi through judicial action.

At this time when the attention of the world turns to the world’s smallest country, housed within the city of Rome, for the election of the 266^th pope of the Catholic Church, it is appropriate to discuss the relationship between the Vatican City State and the Italian Republic.  Today the Vatican is recognized as a Permanent Observer State by the United Nations and as a sovereign nation by Italy.

The Vatican was the capital of the Papal States until 1870 when its sovereignty was lost to the Kingdom of Italy under Victor Emmanuel II.  In 1929 the modern Vatican City State came into being when the Kingdom of Italy and the Vatican signed the Lateran Accords which recognized the sovereignty of the Vatican and provided the Vatican with compensation for the land taken in 1870.  The treaties also gave the Vatican extraterritorial authority over 23 sites within Rome, and five sites outside of the city.  Among these is the Basilica of St. John the Lateran and several other churches, as well as the Apostolic Palace at Castel Gandolfo, where Pope Emeritus Benedict XVI will spend the next few months while his permanent residence within the Vatican walls is being prepared.

After the signing of the Lateran Accords, all Italian laws that passed Parliament and were adopted by Italy were automatically adopted by the Vatican.  This changed in 2009 when the Vatican altered its policy so that the Pontifical Commission for the Vatican City State now examines each Italian law individually before adopting it.  According to Jose Maria Serrano Ruiz, the president of the Vatican commission on law revisions, the change in policy was a result of the “really exorbitant number” of Italian laws, their volatility, and their contrast with Church teaching.  Some speculated that this change was instigated by the decision of Italy’s highest court to allow a woman in a coma to have her feeding tube removed.

For more information:

http://www.historyofnations.net/europe/theholysee.html

https://www.cia.gov/library/publications/the-world-factbook/geos/vt.html

http://worldnews.nbcnews.com/_news/2013/02/27/17106028-inside-castel-gandolfo-pope-benedicts-spectacular-temporary-retirement-home?lite

http://www.vatican.va/roman_curia/secretariat_state/pdf-diplomazia/2004-july1-Resolution%20ONU%20Holy%20See.pdf

http://news.bbc.co.uk/2/hi/7807501.stm

http://www.reuters.com/article/2008/12/31/us-italy-vatican-idUSTRE4BU3BD20081231

A new contender in Italian politics shows a promising first election in the February 2013 election.  In a play for power that features familiar faces such as the pope-backed Mario Monti and former disgraced Prime Minister Silvio Berlusconi, the Stop the Decline party offers a libertarian-focused platform that promises to reduce taxes on Italians by 5% over the next 5 years. 

The party has received notable attention recently in its perceivably credible roadmap to achieving its goals of reducing Italy’s growing massive debt.  Stop the Decline represents a compelling case study in its entrance into Italian politics.  Its adept use of social media has been particularly effective in getting the party noticed.  In addition to its novel use of technology, its founding economists are imports from the United States including Michele Boldrin of Washington University in St. Louis, Missouri; Sandro Brusco of Stony Brook University in New York State; and Andrea Moro of Vanderbilt University in Tennessee.

Despite the momentum the party brings to the election, it has also had its share of controversy.  Stop the Decline’s candidate for prime minister, Oscar Giannino, earlier in the election resigned the party’s leadership, yet remained the prime minister candidate, after he was caught lying about his academic credentials from the University of Chicago Booth School of Business.  His claim of having a masters degree in “Corporate Finance and Public Finance” turned out to be fabricated.  In fact, Giannino did not even attain a bachelor’s degree.  However, this controversy pales in comparison with what Italian voters are used to.  The exit of Berlusconi amidst his allegations of corruption are still fresh on the minds of Italian voters.  Ironically, the former prime minister is predicted to perform better than Giannino, whose party is still trying to establish its platform and its mission with Italian politics.

For further information:

http://www.ibtimes.com/oscar-giannino-italys-most-fashionable-politician-resigns-slideshow-1097020

http://www.nytimes.com/2013/02/21/world/europe/21iht-italy21.html?ref=italy&_r=0

On Monday, February 11, 2013, Pope Benedict sent shockwaves throughout the world.  For the first time in seven centuries, the Pope resigned.  Along with the 1.2 billion Catholics, the rest of the world sits and waits for Conclave, where the Cardinals will elect a new Pope.   There is, however, another election looming even closer than Conclave.  This Sunday, the Italians will go to the polls and elect a new Prime Minister. 

There are two contenders this year, incumbent Mario Monti, and the widely polarizing Silvio Berlusconi.  Experts have widely speculated that the somber mood the Pope’s resignation has created in Italy will bode well for Monti, as he has the backing of Pope Benedict XVI.  Monti is an Italian economist who was invited by President Napolitano to become the Prime Minister in the wake of Silvio Berlusconi’s resignation in 2011.  Monti, described as a “practicing Catholic,” is one of the first technocrats to assume the position.  Many think because of the debt issues currently facing the country, the Italians will choose the incumbent on election day. 

The second candidate, Silvio Berlusconi, always seems to be in the spotlight.  The resignation of the Pope, and his subsequent endorsement of Monti, will have some effect, probably negative, on Berlusconi’s election chances.  Amidst his many scandals,  Berlusconi, still appears to be a contender for the position. 

Soon enough the Catholic Church will have its new leader, but even sooner, the Italians will have a Prime Minister, either the same one, or one that resigned just over a year ago.

Three Americans, which includes a former CIA station chief, were convicted Friday, February 1^st as a result of an abduction of an Egyptian terror suspect from a Milan street as a part of the CIA’s extraordinary extradition program. The three were convicted in absentia by a Milan appeals court. The men were previously acquitted by a lower court in 2009. Their convictions mean that, in all, 26 Americans have been found guilty for the abduction.

The convictions in this case had historical implications, as they were the first convictions ever levied against CIA agents who were allegedly involved in conduct that led to torture. Rome station chief Jeffrey Castelli was sentenced to seven years in prison. Betnie Medero and Ralph Russomando were each issued six-year sentences.

None of the Americans ever either appeared in court or been in Italian custody, and they can potentially be arrested if they travel to Europe. Last year, Italy’s highest court upheld (in absentia) the convictions of the other 23 Americans involved in the kidnapping of the suspect, Osama Moustafa Hassan Nasr. Upon his abduction, Nasr was transferred to two different U.S. military bases in Europe, and then was flow to Egypt. It was in Egypt where Nasr claims he was tortured. Nasr was later released.

For more information:

http://www.leaderpost.com/news/Three+convicted+kidnap+case/7908783/story.html

http://abcnews.go.com/Blotter/wireStory/milan-court-convicts-americans-cia-kidnapping-18375601

Our next look at this year’s Digest authors explores the work and background of Susan Tejada.  Tejada formerly worked for the National Geographic Society as editor-in-chief of National Geographic World magazine.  She has also written and edited books about geography made for young readers, including Dig It: How to Collect Rocks and Minerals (Reader’s Digest Explorer Guides) and Geo-whiz! (Books for World Explorers).

Tejada was born and raised in Providence, Rhode Island.  In Chautauqua, New York, she took part in the Highlights Foundation summer Writers’ Workshop, teaching non-fiction writing for young readers.  Tejada volunteered for two years with the Peace Corps in the Philippines.  There she taught classes and edited the Peace Corps/Philippines national magazine.  Tejada has also been an associate editor of EPA Journal, in which she worked as a reporter of environmental issues.

Recently, Tejada was the recipient of a research fellowship from the Lilly Library of Indiana University.  With this, she did the research for her latest book, In Search of Sacco and Vanzetti:  Double Lives, Troubled Times, and the Massachusetts Murder Case That Shook the World.  In September of 2012, Tejada was featured at the Library of Congress National Book Festival for this work of nonfiction about the controversial trial of two Italian-born anarchists who were convicted of robbery and murder.  A starred review in Booklist says In Search of Sacco and Vanzetti has “the suspense and engagement of a good thriller . . . [with the] . . . “perceptive history of early twentieth-century radicalism.”

Sources:

http://susantejada.com

http://www.amazon.com/Susan-Tejada/e/B001K8CGTO/ref=ntt_dp_epwbk_0

http://www.loc.gov/bookfest/author/susan_tejada/

As far back as January 2011, Italian authorities have shunned the international standards of treating asylum seekers from Greece.  Emigrants attempting to escape the dire economic situation of Greece show up on the Eastern coast of Italy only to be sent back on ferries within hours.  This practice, which has allegedly continued for year, has received criticism from groups like the Human Rights Watch.

Part of the increased scrutiny regarding refugees from Greece concerns the inhospitable and dysfunctional conditions of Grecian detention facilities where these emigrants are being returned.  Emigrants are returned to a country with law enforcement abuse with deplorable holding facilities and inadequate food.

In many cases, the Italian border authorities turn away emigrants without being interviewed or screened for asylum, a clear breach of Italy’s legal obligations.  In the case of children, Italian and international law require that children are given access to a guardian or social services.  Sending any migrant back to Greece without an opportunity to file asylum claims also violates Italian and international legal obligations.

The special case of the deteriorating conditions of Greece’s asylum system has led to European court rulings prohibiting the return of emigrants to Greece.  Under Dublin II regulation requires that the first EU country of entry process an asylum claim.  Further, many nongovernmental organizations formed to assist refugees are also being denied access to those from Greece who wish to apply for asylum.

The European Court of Human Rights will soon issue a judgment involving the 2009 summary return of 25 adults and 10 children who contend that the return violated their right to life and to protection against torture or ill treatment.  It remains to be seen whether the judgment will have an impact on the behavior of Italian border authorities.

For more information:

http://www.hrw.org/news/2013/01/22/italy-summary-returns-greece-violate-rights

http://www.nytimes.com/2013/01/22/world/europe/italy-said-to-turn-back-asylum-seekers-from-greece.html?ref=italy&_r=0

Last February,[1] the Italian Supreme Court ruled that punitive damages are unenforceable because they are against public policy.   The Italian high court has had this stance for several years. 
Punitive damages are traditionally an American practice.  Italians, however, do not believe in punitive damages.  Some courts find them “offensive.”  In the Italian system, the sole goal of tort lawsuits is to compensate the victims for their losses.  Punitive damages, however, are designed to punish the wrongdoer, reward the plaintiff for enforcing the law, thus improving society.

Italian courts, however, will enforce judgments that have punitive damages, so long as the compensatory damages can be clearly separated from those of the punitive damages.  

While some scholars still maintain that other courts would be more accepting of punitive damage awards, the Italian high court remains firmly reliant on its precedent, rejecting the idea. 

On Wednesday November 14, 2012, the highest court in Italy, the Court of Cassation in Rome, convicted two Italian citizens of obscene acts in public under Italian law. The incident occurred in 2006 when the two individuals, reportedly a 40 year-old woman and 60 year-old man, were observed having sexual intercourse outdoors and were thereafter charged.

The couple’s rationale for their open-air affections hinged on a game of association football, known as soccer in America. At the time in 2006, the World Cup was being played in Germany, and, more specifically, Italy was then engaged in a quarterfinal match against the Ukraine. The couple however was in no mood for soccer, and assumed that no one would witness their lovemaking as much of Italy would be staying indoors cheering for the national team. As it happened, the two were arrested by law enforcement officers who were also outside, part of the small segment of the population not enraptured in the soccer game.

After being convicted by a regional court, the couple appealed, and the highest court in Italy agreed to review the case. Alas, the decision of the lower court was upheld, solidifying the doctrine that even a soccer game of great import does not excuse such a public display.

It should be noted that the Italy national team emerged victorious on the day in 2006. The team was propelled to a 3-0 win on the strength of goals by Gianluca Zambrotta and Luca Toni. Italy eventually won the entire tournament, surely giving many Italians something to feel good about.

Prosecutors in Italy are attempting to take seven workers from Standard & Poor’s and Fitch rating agencies to trial for “alleged market manipulation and abuse of privileged information.”  The Italian magistrates have yet to rule on whether the case can move forward.  If it does, this could have an effect on the way that rating agencies act, and what duties they, as private entities, owe to the governments they express credit-worthiness about.

Credit agencies have been coming under attack recently for actions they have taken before and after the financial meltdown.  Last year, when the United States lost its AAA rating, the Obama administration was quick in its attempt to discredit the reliability of the methods Standard & Poor’s used in determining its ratings.  European policymakers have also complained that the European Union did not deserve the downgrades that it received, and former Italian Prime Minister Silvio Berlusconi has spoken out against a “political agenda” behind the rating agencies’ motives.

It is reasonable to become upset with rating agencies and to speak out against them.  But ultimately, people must take responsibility for their own reliance on the ratings that credit rating agencies give.  The disclaimer of Standard & Poor’s does a good job of summing up its position in the world of finance:

Any credit-related analyses, including ratings, or statements used in  any of the Content are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions…. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions.

If the Italian courts decide to hear this case, it would not be the first of its kind. Indeed, an Australian court recently ruled that Standard & Poor’s misled investors by giving good ratings to bonds that ultimately failed in the fiscal meltdown.

But it must be recognized that to take legal action against credit rating agencies is entirely different than merely expressing an opinion about the soundness of their judgments.  Allowing this Italian court proceeding to move forward would effectively pronounce that in the future credit rating agencies could owe a higher duty to investors and to the entities that they rate.  This could change the relationship that credit rating agencies have to the governments they rate, and ultimately compromise the independent judgment that they are able to offer.  It remains to be seen whether the Italian courts will allow this to happen.

For more information:

http://www.reuters.com/article/2012/11/12/us-italy-ratings-probe-idUSBRE8AB0QO20121112

http://www.standardandpoors.com/regulatory-affairs/indices/en/us

http://minnesota.publicradio.org/features/npr.php?id=139038131