In Italy, Political Fallout Over Plans for Telecom


IN ITALY, POLITICAL FALLOUT OVER PLANS FOR TELECOM
[SOURCE: New York Times, AUTHOR: Eric Sylvers]
It started with the announcement of a clear-cut plan to split up Italy’s largest phone company, Telecom Italia, into separate mobile and fixed-line units. But that seemingly simple plan has led to a verbal slugfest between the prime minister, Romano Prodi, and the company’s chairman, Marco Tronchetti Provera, who is also the country’s best-known executive. Now, Mr. Prodi’s government, which has a razor-thin majority in Parliament, seems to be wavering for the first time since he took office in May. On Thursday, he faces public scrutiny by opposition members of Parliament when he appears before the lower house to answer to criticism that he might be interfering in Mr. Tronchetti Provera’s corporate sphere. Then, on Oct. 5, Mr. Prodi will again face opposition Parliament members at a hearing in the Senate. Some members of Parliament are concerned that Mr. Prodi appears to be meddling in the affairs of a private company, despite European Union guidelines against such interference.
http://www.nytimes.com/2006/09/27/technology/27tele.html
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