Italy politician arrested in widening funding scandal

Updated 02 October 2012
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Italy politician arrested in widening funding scandal

ROME: A senior Italian regional politician was arrested on Tuesday in a widening corruption scandal that could damage former Prime Minister Silvio Berlusconi’s already weakened center-right party ahead of a national election in April.
Financial police arrested Franco Fiorito, former leader of Berlusconi’s People of Freedom (PDL) party in the regional parliament of Lazio, on suspicion of embezzlement, a justice system official said. His lawyers confirmed the arrest.
The arrest is the latest development in a scandal that has further tarnished the already abysmal image of Italian politics and weakened the PDL, which has been deeply divided since Berlusconi was forced to step down last year.
Dozens of other regional politicians are also alleged to be involved in the scandal which prompted the resignation last week of Lazio president Renata Polverini, whose departure is expected to trigger new regional elections within the next few months.
Italian newspapers have carried accounts of lavish parties and dinners apparently paid for with public funds and held by politicians in Lazio, the region surrounding the capital Rome.
One particularly damaging series of photographs shows revellers clad in togas and pig masks, underscoring the decadent image of the political class in a country facing deep recession and financial crisis.
The portly, bearded Fiorito had already been under investigation by magistrates over accusations that he embezzled around 1.3 million euros of party funds and used the money for a Sardinian holiday, expensive restaurants, cars and luxury goods.
In Italy, political parties receive state financing, meaning the money alleged to have been embezzled ultimately came from public funds.
However Fiorito’s lawyer Carlo Taormina said his client should not have been arrested for embezzlement and that many other politicians were also involved in the affair.
“There’s a legal argument which says that when this public money goes into the pockets of the party, whether you like it or not, it becomes private money,” he told TGCom24 television. “And you also have to say that if they’ve arrested Fiorito, the other 70 regional councillors in Lazio are missing from the list.”
Earlier this month, Fiorito told investigators that many other regional councillors were involved in a well-established system of sharing out party funds among themselves.
Berlusconi and PDL party secretary Angelino Alfano have attempted to distance themselves from the scandal, calling for an overhaul of party financing rules and tougher penalties on those guilty of abusing party funds.
But with recent opinion polls showing the PDL trailing both the center-left Democratic Party and the anti-establishment 5 Star Movement, the scandal has added a further obstacle six months away from the election.


Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

Updated 23 December 2025
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Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

  • Deal will mean US tariffs on Indonesian products are cut from a threatened 32 percent to 19 percent
  • Jakarta committed to scrap tariffs on more than 99 percent of US goods

JAKARTA: Indonesia expects to sign a tariff deal with the US in early 2026 after reaching an agreement on “all substantive issues,” Jakarta's chief negotiator said on Tuesday.

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto met with US trade representative Jamieson Greer in Washington this week to finalize an Indonesia-US trade deal, following a series of discussions that took place after the two countries agreed on a framework for negotiations in July.

“All substantive issues laid out in the Agreement on Reciprocal Trade have been agreed upon by the two sides, including both the main and technical issues,” Hartarto said in an online briefing.

Officials from both countries are now working to set up a meeting between Indonesian President Prabowo Subianto and US President Donald Trump. 

It will take place after Indonesian and US technical teams meet in the second week of January for a legal scrubbing, or a final clean-up of an agreement text.

“We are expecting that the upcoming technical process will wrap up in time as scheduled, so that at the end of January 2026 President Prabowo and President Trump can sign the Agreement on Reciprocal Trade,” Hartarto said.  

Indonesian trade negotiators have been in “intensive” talks with their Washington counterparts since Trump threatened to levy a 32 percent duty on Indonesian exports. 

Under the July framework, US tariffs on Indonesian imports were lowered to 19 percent, with Jakarta committing to measures to balance trade with Washington, including removing tariffs on more than 99 percent of American imports and scrapping all non-tariff barriers facing American companies. 

Jakarta also pledged to import $15 billion worth of energy products and $4.5 billion worth of agricultural products such as soybeans, wheat and cotton, from the US. 

“Indonesia will also get tariff exemptions on top Indonesian goods, such as palm oil, coffee, cocoa,” Hartarto said. 

“This is certainly good news, especially for Indonesian industries directly impacted by the tariff policy, especially labor-intensive sectors that employ around 5 million workers.” 

In the past decade, Indonesia has consistently posted trade surpluses with the US, its second-largest export market after China. 

From January to October, data from the Indonesian trade ministry showed two-way trade valued at nearly $36.2 billion, with Jakarta posting a $14.9 billion surplus.