Italian election has wider European repercussions

Berlusconi

TOPLINE: Italy is set to choose a new prime minister in May 13 general elections pitting against each other two major candidates: billionaire tycoon Silvio Berlusconi of the main center-right coalition and former Roman Mayor Francesco Rutelli of the ruling center-left Olive Tree alliance.

IN CONTEXT: Rutelli has been lagging in voter polls, posing the possibility that a Berlusconi-led government would move to the right and complicate Rome's relationship with the more liberal-leaning European Union.

• KEY QUESTIONS   • KEY PLAYERS   • BOTTOM LINE IN-DEPTH Italy Decides 2001   MESSAGE BOARD Italian elections

Rutelli was elected mayor of Rome for two consecutive terms and is a member of the Democrats party founded by European Commission President Romano Prodi.

Berlusconi's "House of Freedoms" coalition favors tax cuts, more limited immigration laws and a tougher law enforcement policy.

His coalition's association with the post-fascist Alleanza Nazionale party has drawn criticism from German Chancellor Gerhard Schroeder, prompting fears that a Berlusconi-led government might contribute to an isolationist movement in Europe against Italy.

Berlusconi -- a former prime minister -- was born in Milan 65 years ago to the son of a bank clerk. He is now considered to be Italy's richest man. In 1999, he declared an income of 16.2 billion lira ($7.4 million), while his personal wealth was estimated by Forbes magazine at $12.8 million.

The Berlusconi family empire stretches from telecommunications to insurance and construction. It includes top football team AC Milan, the Mediolanum bank, Italy's largest publishing house Mondadori, the leading daily newspaper Il Giornale and the popular news magazine Panorama.

His opponents say there would be too many conflicts of interest for Berlusconi to become prime minister for a second time.

Since the early 1990s, Berlusconi has had to contend with numerous judicial inquiries into his business activities. So far, he has been cleared of charges involving budget fraud and corruption. But three cases remain pending in Italy and one in Spain.

Rutelli

Although Italian prime ministers seem to come and go on an all-too-often basis, the Italians have been recent political trendsetters.

Italy's move toward the left in 1996 preceded similar election results in Great Britain and Germany.

Both left- and right-wing parties in Italy are talking of devolving tax decisions to the nation's regional governments.

Such a move might strengthen demands for regional powers in other European nations.

Already, British Prime Minister Tony Blair has given Scotland a parliament and Wales an assembly. The French, as well, have broken tradition in an attempt to settle Corsican demands.

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