Identifier
Created
Classification
Origin
03ROME5557
2003-12-12 12:45:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Rome
Cable title:  

ITALIAN PARLIAMENT APPROVES CONTROVERSIAL MEDIA

Tags:  ECPS ECON PGOV IT ITALIAN POLITICS 
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UNCLAS SECTION 01 OF 04 ROME 005557 

SIPDIS


DEPT FOR EB/CIB
COMMERCE FOR SPECK

SENSITIVE

E.O. 12958: N/A
TAGS: ECPS ECON PGOV IT ITALIAN POLITICS
SUBJECT: ITALIAN PARLIAMENT APPROVES CONTROVERSIAL MEDIA
SECTOR REFORM BILL

-------
SUMMARY
-------

UNCLAS SECTION 01 OF 04 ROME 005557

SIPDIS


DEPT FOR EB/CIB
COMMERCE FOR SPECK

SENSITIVE

E.O. 12958: N/A
TAGS: ECPS ECON PGOV IT ITALIAN POLITICS
SUBJECT: ITALIAN PARLIAMENT APPROVES CONTROVERSIAL MEDIA
SECTOR REFORM BILL

--------------
SUMMARY
--------------


1. (U) ON DECEMBER 2, ITALYS PARLIAMENT, BY A VOTE OF 155
TO 128, APPROVED A HIGHLY CONTROVERSIAL MEDIA-
COMMUNICATIONS SECTOR REFORM LAW. KNOWN AS THE GASPARRI
BILL (NAMED AFTER THE COMMUNICATIONS MINISTER),THE LAW NOW
TREATS THE MEDIA MARKET AS A SINGLE BROAD, INTEGRATED
MARKET, WITH NO DISTINCTIONS MADE AMONG TELEVISION, RADIO,
PRESS, INTERNET SERVICES AND OTHER COMMUNICATION SERVICES.
THE GOI ARGUES THAT THE LAW WILL CREATE MARKET/INVESTMENT
OPPORTUNITIES, ENCOURAGE NEW MARKET PARTICIPANTS,
AND PROMOTE GREATER COMPETITION. THE LAW SETS NEW OWNERSHIP
CRITERIA A 20 PERCENT CEILING OF THE ENTIRE MEDIA SECTOR
REVENUES FOR EACH INDIVIDUAL OPERATOR AND CALLS FOR THE
PRIVATIZATION OF THE STATE-OWNED TELEVISION BROADCASTER RAI
IN 2004. THE LAW ALSO IS DESIGNED TO HELP ACCELERATE THE
SHIFT FROM ANALOG TO DIGITAL TRANSMISSION IN TELEVISION
BROADCASTING.


2. (SBU) PARLIAMENT HAS HOTLY DEBATED THE LAW FOR NEARLY
18 MONTHS. OPPONENTS AND CRITICS OF THE LAW CONTEND THAT
IT WAS DESIGNED EXCLUSIVELY TO ALLOW PM BERLUSCONI TO
LEGITIMIZE HIS MEDIA HOLDINGS (WHICH TECHNICALLY EXCEED
THOSE PERMITTED UNDER CURRENT LAW) AND TO EXPAND FURTHER
HIS MEDIA EMPIRE. ON THE SPECIFICS, MANY CRITICS CLAIM
THAT SUCH A BROAD DEFINITION OF THE MEDIA SECTOR WILL MAKE
IT VIRTUALLY IMPOSSIBLE TO MEASURE OWNERSHIP PERCENTAGES
VALUE, AND THUS, MONITOR THE 20 PERCENT CAP. OPPONENTS
ALSO CONTEND THAT SUCH A BROAD DEFINITION COULD ALLOW A
SINGLE OPERATOR OR OWNER TO DOMINATE ONE PARTICULAR FIELD.
.
SOME CLAIM THE BILL VIOLATES THE CONSTITUTION, AND IN
PARTICULAR, CONSTITUTIONAL COURT DECISIONS REGARDING THE
PRIME MINISTERS TELEVISION OWNERSHIP. PRESIDENT CIAMPI
MUST SIGN THE BILL BEFORE IT BECOMES LAW; MANY ARE PRESSING
HIM NOT TO DO SO. EVEN IF HE WERE TO SIGN THE LAW,
OPPONENTS HOPE THE CONSTITUTIONAL COURT WOULD OVERRULE THE
LAW. OUR BEST BET IS THAT CIAMPI WILL SIGN THE LAW. ON THE
OTHER HAND, OUR CONTACTS BELIEVE THAT THE SUPREME COURT
COULD WELL FIND CONSTITUTIONAL VIOLATIONS. REGARDLESS OF
ITS PRACTICAL IMPACT, THE LEGISLATION IS STRENGTHENING
PERCEPTIONS OF A GOVERNMENT INTERESTED IN FURTHERING ITS
OWN NARROW INTERESTS. END SUMMARY.


3. (U) SINCE THE PARLIAMENTS PASSAGE OF THE LAW ON
DECEMBER 2, WE HAVE SPOKEN WITH SENIOR AIDES TO MINISTER
GASPARRI, A KEY DRAFTER OF THE LEGISLATION, AS WELL AS
POLITICAL OBSERVERS AND SECTOR CONTACTS.

--------------
EXPANDING THE DEFINITION
--------------


4. (U) THE GASPARRI LAW INTRODUCES THE CONCEPT OF AN

N
INTEGRATED SYSTEM OF COMMUNICATIONS (THE SIC). THE SIC
ENVISIONS THE MEDIA/COMMUNICATIONS MARKET AS ONE VERY BROAD
SINGLE SECTOR ENCOMPASSING ALL MEDIA/COMMUNICATIONS, TO
INCLUDE, BUT NOT BE LIMITED TO, TELEVISION AND RADIO
BROADCASTING, THE PRESS, AND THE INTERNET. THE LAW
ESTABLISHES A CEILING WHEREBY NO SINGLE OPERATOR CAN
GENERATE MORE THAN 20 PERCENT OF OVERALL SIC REVENUES. ONE
EXCEPTION PROVIDES FOR A 10 PERCENT CAP FOR THE FORMER
TELECOMMUNICATIONS STATE MONOPOLY TELECOM ITALIA (WHICH
ALSO OWNS A TV STATION LA 7) AS IT WAS THOUGHT THAT THE
COMPANY ALREADY ENJOYS A DOMINANT POSITION IN THE MARKET.
IN LIGHT OF THE BROAD DEFINITION OF THE
MEDIA/COMMUNICATIONS MARKET, THE LAW ALSO OPENS THE
POSSIBILITY FOR CROSS-OWNERSHIP IN TELEVISION AND IN THE
PRESS. HOWEVER, ENTITIES OWNING MORE THAN ONE TELEVISION
STATION ARE NOT ALLOWED TO PURCHASE NEWSPAPERS BEFORE THE
END OF 2008.

--------------
FROM ANALOG TO DIGITAL BY 2006
--------------

ROME 00005557 002 OF 004

OADCASTING BE SWITCHED
FROM THE ANALOG SYSTEM TO DIGITAL BY 2006. HOWEVER, THE
LAW REQUIRES AN ACCELERATED PROCESS BY MANDATING THAT 70
PERCENT OF THE POPULATION BE COVERED BY DIGITAL BY THE END
OF 2004. THE GOI MAINTAINS THAT THE GREATER TRANSMISSION
CAPACITY OFFERED BY DIGITAL (5-6 TIMES THAT OF ANALOG
TRANSMISSION) WOULD ALLOW CURRENT MARKET PLAYERS TO EXPAND
AND ALSO ENCOURAGE NEW ENTRANTS. IN ADDITION, DIGITAL
BROADCASTING WILL ALLOW END-USERS TO OPERATE INTERACTIVE
CHANNELS. THUS, ACCESS TO PUBLIC SERVICES, INTERNET, AND
OTHER DATA TRANSMISSION (SUCH AS TEXT MESSAGING) WILL BE
POSSIBLE THROUGH A TELEVISION. THE GOI WILL PROVIDE
FINANCIAL INCENTIVES FOR CONSUMERS TO ENCOURAGE THE
PURCHASE OF DIGITAL DECODERS TO ENCOURAGE THE SHIFT TO
DIGITAL.

--------------
PRIVATIZATION OF STATE-OWNED RAI CHANNELS
--------------


6. (U) THE GASPARRI LAW INTRODUCES A TIMETABLE FOR THE
PRIVATIZATION OF STATE-OWNED RAI (RADIO AND TELEVISION
BROADCASTING CONGLOMERATE),WITH THE FIRST TRANCHE TO BEGIN
IN JANUARY 2004. THE LAW SPECIFIES THAT NO SINGLE INVESTOR
MAY HOLD MORE THAN ONE PERCENT IN RAI, BUT THE DEADLINE BY
WHICH PRIVATIZATION MUST BE COMPLETED IS NOT DEFINED.
HOWEVER, OUR MINISTRY CONTACTS BELIEVE THIS WILL BE A LONG
PROCESS AND THAT RAI WILL REMAIN IN PUBLIC HANDS FOR THE
FORESEEABLE FUTURE.


7. (U) OTHER SIGNIFICANT ELEMENTS CONTAINED IN THE GASPARRI
LAW INCLUDE PROVISIONS RELATING TO OWNERSHIP OF LOCAL
TELEVISION STATIONS, RESPONSIBILITIES AND RIGHTS OF
REGIONAL GOVERNMENTS, THE PROTECTION OF MINORS, AND
ADVERTISEMENT CEILINGS.

--------------
THE CONTROVERSY
--------------


8. (SBU) PARLIAMENTARY REVIEW OF THE BILL LASTED OVER 18
MONTHS. THOUSANDS OF AMENDMENTS WERE PROPOSED TO THE
ORIGINAL TEXT. EVEN IN THE LAST MINUTES BEFORE THE VOTE, IT
WAS UNCLEAR WHETHER THE SENATE WOULD APPROVE THE GASPARRI
BILL. THE OPPOSITION TRIED TO OBSTRUCT PASSAGE OF THE LAW
AND CALLED FOR SEC RET VOTES - HOPING THAT SOME IN THE
MAJORITY WOULD DEFECT AS THEY HAD DURING THE CHAMBER OF
DEPUTIES VOTE. HOWEVER, A FLOOR VOTE WENT AHEAD; THERE
WERE NO DEFECTIONS.


9. (SBU) CRITICS OF THE LEGISLATION, INCLUDING THE CENTER-
LEFT OPPOSITION, CLAIM THE BILL WAS SPECIFICALLY DESIGNED
TO ALLOW PRIME MINISTER BERLUSCONIS MEDIA EMPIRE TO
EXPAND. AT A MINIMUM, THE GASPARRI LAW LEGITIMIZES
BERLUSCONI'S CURRENT MEDIA HOLDINGS, WHICH EXCEED THE
MONOPOLY CEILINGS UNDER THE CURRENT LAW. (NOTE: A 2002
CONSTITUTIONAL COURT DECISION ORDERED ANYONE OWNING MORE
THAN TWO BROADCAST NETWORKS TO RELINQUISH THE EXCESS NUMBER
BY NOVEMBER 2003. UNDER THAT RULING, BERLUSCONI WOULD HAVE
HAD TO GIVE UP ONE MEDIASET BROADCAST CHANNEL, EITHER
SELLING IT OR CONVERTING IT TO A MUCH LESS PROFITABLE
SATELLITE-ONLY NETWORK. END NOTE.)


10. (SBU) BERLUSCONI OPPONENTS BELIEVE (OR CLAIM TO
BELIEVE) THAT, AS THINGS STAND NOW, THE PMS DIRECT OR
OR
INDIRECT CONTROL OVER MOST OF ITALY'S BROADCAST NETWORKS
REPRESENTS AN UNACCEPTABLE CONFLICT OF INTEREST AND A
THREAT TO DEMOCRACY. OPPONENTS TO THE BILL VOICED SPECIFIC
CONCERNS THAT SUCH A BROAD DEFINITION OF THE
MEDIA/COMMUNICATIONS SECTOR WILL MAKE IT VIRTUALLY
IMPOSSIBLE TO MEASURE PERCENTAGE HOLDINGS IN ANY MEANINGFUL
AND THUS MONITOR THE 20 PERCENT CAP. IN THIS RESPECT,
OPPONENTS ALSO CLAIM THAT BY NOT BEING ABLE TO MEASURE
ANTITRUST CEILINGS, THE LARGE OPERATORS ESSENTIALLY THE
EXISTING TWO DOMINANT NETWORKS RAI AND BERLUSCONIS
MEDIASET - WILL BECOME LARGER, WITH NO REAL MARKET
OPPORTUNITY FOR NEW ENTRANTS.

ROME 00005557 003 OF 004

CONSTITUTIONAL COURT
DECISIONS REGARDING BERLUSCONI'S TELEVISION INTERESTS.
(NOTE: ONE 2001 RULING, FOR EXAMPLE, CALLED FOR ONE
MEDIASET CHANNEL AND ONE RAI CHANNEL TO CEASE ANALOG
TRANSMISSIONS BY YEARS END. WHILE THE GASPARRI LAW
ACCELERATES TRANSITION FROM ANALOGUE TO DIGITAL, IT ALSO
SO
PRESERVES THE STATUS QUO OF ANALOGUE TRANSMISSIONS IN THE
INTERIM. END NOTE). OPPONENTS OF THE LAW ALSO CONTEND THAT
THE BILL IS NOT IN LINE WITH EU ANTITRUST RULES AND BELIEVE
IT ALSO COULD BE APPEALED ON THESE GROUNDS.

--------------
A COMPREHENSIVE LAW BUT
--------------


12. (SBU) EMBASSY MEDIA/COMMUNICATIONS CONTACTS OUTSIDE OF
THE COMMUNICATIONS MINISTRY TELL US THAT THE POSITIVE
ASPECT OF THE LAW IS ITS RECOGNITION THAT THERE IS A
GROWING, INDISPUTABLE INTEGRATION AMONG COMMUNICATIONS
COMPARTMENTS (I.E., TELEVISION, RADIO, PRESS, TELEPHONY,
AND THE INTERNET). HOWEVER, OUR CONTACTS ALSO EXPRESSED
RESERVATIONS ABOUT THE LAW AND WERE PERPLEXED ABOUT THE
BROAD DEFINITION OF THE SECTOR. THEY CONCURRED THAT IT
WILL BE EXTREMELY COMPLICATED TO MEASURE THE SIZE OF SUCH A
BROADLY DEFINED MARKET, AND THUS, TO MONITOR THE 20 PERCENT
REVENUE LIMITATION. MOREOVER, THEY UNDERSCORED THE DANGER
THAT ONE ENTITY MAY DOMINATE A SPECIFIC FIELD (E.G.,
,
TELEVISION) WITHOUT NECESSARILY VIOLATING THE 20 PERCENT
CAP.


13. (SBU) OUR CONTACTS FURTHER NOTED THAT SUCH MILESTONE
LEGISLATION ENACTED BY A GOVERNMENT HEADED BY A MEDIA
MAGNATE INEVITABLY RAISES SUSPICIONS AND CONCERNS -
ESPECIALLY, AS THE BROAD DEFINITION OF THE MEDIA SECTOR
WILL LIKELY PERMIT BERLUSCONIS MEDIASET TO GROW
SUBSTANTIALLY. (SOME ESTIMATES INDICATE THAT MEDIASET COULD
EVEN DOUBLE IN SIZE.) COMMUNICATIONS MINISTRY OFFICIALS,
WHILE ACKNOWLEDGING THE ADVANTAGES FOR MEDIASET, MAINTAIN
THAT ADVANCEMENT OF THE COUNTRY CANNOT BE HELD BACK BECAUSE
OF THIS AND ALSO MAINTAIN THAT THIS IS AN OPPORTUNITY FOR
ALL, NOT JUST MEDIASET.

--------------
CIAMPI AND THE CONSTITUTIONAL COURT
--------------


14. (SBU) THE LAW NOW GOES TO PRESIDENT CIAMPI FOR HIS
APPROVAL AND SIGNATURE. THE PRESIDENT HAS THIRTY DAYS TO
EXAMINE THE CONSTITUTIONALITY OF THE LAW, DURING WHICH
TIME, HE MUST SIGN IT OR RETURN IT TO PARLIAMENT WITH AN
AN
EXPLANATION FOR THE REJECTION. OVER THESE PAST 18 MONTHS,
PRESIDENT CIAMPI HAS TRIED TO STAY ABOVE THE POLITICAL FRAY
OF CHARGES AND COUNTER-CHARGES STEMMING FROM THE PROPOSED
LEGISLATION. ONLY WHEN THE LAW WAS FIRST INTRODUCED DID HE
EXPRESS HIS OPINION THAT THERE IS NO DEMOCRACY WITHOUT
PLURALISM AND IMPARTIALITY IN COMMUNICATIONS.


15. (SBU) THE OPPOSITION IS PRESSING THE PRESIDENT NOT TO
SIGN, CALLING THE LAW UNCONSTITUTIONAL, NON-LIBERAL,
TAILOR-MADE FOR BERLUSCONI, AND A LAW CONTRARY TO
STATEMENTS BY CIAMPI HIMSELF IN THE CHAMBERS. ON THE OTHER
HAND, THE MAJORITY HAS DEFENDED THE LAW, ARGUING THAT IT
GUARANTEES AND DEFENDS PLURALISM. PRESIDENT CIAMPI IS IN
AN UNENVIABLE POSITION; WHATEVER DECISION HE TAKES WILL
LIKELY STOKE THE POLITICAL FIRES.


16. (SBU) AGAINST THIS BACKDROP, THE CENTER RIGHT SUDDENLY
HAS DEVELOPED RENEWED INTEREST IN PASSAGE OF DRAFT CONFLICT
OF INTEREST LEGISLATION, PENDING IN PARLIAMENT FOR AT LEAST
A YEAR, WITH A FINAL VOTE SCHEDULED FOR DECEMBER 17. THE
MAJORITY MAY HOPE THAT PASSAGE OF THIS LEGISLATION MIGHT
MAKE IT EASIER FOR PRESIDENT CIAMPI TO SIGN THE GASPARRI
LAW. (NOTE: UNDER THE DRAFT CONFLICT OF INTEREST
LEGISLATION, SOME GOVERNMENT POSITIONS WOULD BE CONSIDERED
INCOMPATIBLE WITH SOME PROFESSIONAL AND BUSINESS
ACTIVITIES, ALTHOUGH OWNERSHIP OF A COMPANY OR SHARES ALONE

ROME 00005557 004.1 OF 004

UR ONLY WHEN A PUBLIC
OFFICIAL TOOK ACTIO THAT NOT ONLY FAVORED HIS/HER COMPANY,
BUT ALSOHARMED THE PUBLIC INTEREST, UNLESS THE ACT WOULD
AFFECT THE GENERAL INTEREST OF MANY OTHER COMPANIES. CASES
OF PRESUMED CONFLICT OF INTEREST WOULD B REFERRED TO
PARLIAMENT, WHICH WOULD DETERMINE TE SANCTIONS. END NOTE.)

--------------
COMMENT
--------------

17. (SBU) MOST OF OUR CONTACTS BELIEVE IT UNLIKELY THAT
CIAMPI WILL SEND THE LAW BACK TO PARLIAMENT, AND WE SHARE
THIS PERSPECTIVE. TO DO SO WOULD BE ALMOST UNPRECEDENTED
AND SET THE STAGE FOR AN INSTITUTIONAL CONFLICT BETWEEN THE
PRIME MINISTER AND THE PRESIDENT SOMETHING BOTH WOULD
LIKE TO AVOID. OUR OBSERVATIONS SUGGEST THAT SUCH
CONTROVERSIAL LEGISLATION WOULD NOT HAVE BEEN PASSED ABSENT
SOME TYPE OF TACIT UNDERSTANDING BETWEEN THE BERLUSCONI
GOVERNMENT AND PRESIDENT CIAMPI. ON THE OTHER HAND, SOME
OF OUR CONTACTS DO BELIEVE THAT THE CONSTITUTIONAL COURT
MAY FIND CONSTITUTIONAL VIOLATIONS.


18. (SBU) IT IS CLEAR THAT THE CENTER RIGHT MAJORITY WANTS
TO CHALK UP SEVERAL LEGISLATIVE VICTORIES BEFORE THE
CHRISTMAS RECESS AND BEFORE CAMPAIGNING BEGINS IN EARNEST
FOR NEXT YEAR'S EUROPARLIAMENTARY ELECTIONS. PASSAGE OF
THE TWO MOST CONTROVERSIAL PIECES OF LEGISLATION OF THE
BERLUSCONI GOVERNMENT THE GASPARRI BILL AND THE CONFLICTS
OF INTEREST BILL WOULD ALLOW THE GOVERNMENT TO CLAIM
CREDIT FOR HAVING ACCOMPLISHED MORE OF ITS PROGRAM
(INCLUDING ACTING ON TWO ISSUES THAT HAVE LANGUISHED
THROUGH MULTIPLE PRIOR ITALIAN GOVERNMENTS). PASSAGE OF
THE TWO PIECES OF LEGISLATION WOULD ALSO SET ASIDE SOME
ME
HIGHLY CONTROVERSIAL ISSUES BEFORE THE CAMPAIGN SEASON
HEATS UP.


19. (SBU) ASSUMING THE GASPARRI LAW COMES INTO FORCE (WITH
OR WITHOUT ACCOMPANYING CONFLICT OF INTEREST LEGISLATION),
IT WILL TAKE CONSIDERABLE TIME TO ASSESS IT REAL IMPACT
UPON COMPETITION AND FAIR PLAY IN THE ITALIAN
MEDIA/COMMUNICATIONS SECTOR. IN OUR VIEW, THE ITALIAN
MEDIA NOW DOES NOT SUFFER FROM A LACK OF DIVERSE
OPINION. HOWEVER, THE GASPARRI LAW CLEARLY SETS THE STAGE
FOR FURTHER CONCENTRATION OF MEDIA OWNERSHIP. BERLUSCONI
AND HIS SUPPORTERS SEEM UNSWAYED BY PERCEPTIONS OF OTHERS
(OUTSIDE THIS MISSION) THAT THIS LEGISLATION FURTHER
CEMENTS A MEDIA SYSTEM LACKING DIVERSITY OF OWNERSHIP. END
COMMENT.

SEMBLER
R




ROME 00005557 004.2 OF 004

CUR ONLY WHEN A PUBLIC
OFFICIAL TOOK ACTION THAT NOT ONLY FAVORED HIS/HER COMPANY,
BUT ALSO HARMED THE PUBLIC INTEREST, UNLESS THE ACT WOULD
AFFECT THE GENERAL INTEREST OF MANY OTHER COMPANIES. CASES
OF PRESUMED CONFLICT OF INTEREST WOULD BE REFERRED TO
PARLIAMENT, WHICH WOULD DETERMINE THE SANCTIONS. END NOTE.)

--------------
COMMENT
--------------


17. (SBU) MOST OF OUR CONTACTS BELIEVE IT UNLIKELY THAT
CIAMPI WILL SEND THE LAW BACK TO PARLIAMENT, AND WE SHARE
THIS PERSPECTIVE. TO DO SO WOULD BE ALMOST UNPRECEDENTED
AND SET THE STAGE FOR AN INSTITUTIONAL CONFLICT BETWEEN THE
PRIME MINISTER AND THE PRESIDENT SOMETHING BOTH WOULD
LIKE TO AVOID. OUR OBSERVATIONS SUGGEST THAT SUCH
CONTROVERSIAL LEGISLATION WOULD NOT HAVE BEEN PASSED ABSENT
SOME TYPE OF TACIT UNDERSTANDING BETWEEN THE BERLUSCONI
GOVERNMENT AND PRESIDENT CIAMPI. ON THE OTHER HAND, SOME
OF OUR CONTACTS DO BELIEVE THAT THE CONSTITUTIONAL COURT
MAY FIND CONSTITUTIONAL VIOLATIONS.


18. (SBU) IT IS CLEAR THAT THE CENTER RIGHT MAJORITY WANTS
TO CHALK UP SEVERAL LEGISLATIVE VICTORIES BEFORE THE
CHRISTMAS RECESS AND BEFORE CAMPAIGNING BEGINS IN EARNEST
FOR NEXT YEAR'S EUROPARLIAMENTARY ELECTIONS. PASSAGE OF
THE TWO MOST CONTROVERSIAL PIECES OF LEGISLATION OF THE
BERLUSCONI GOVERNMENT THE GASPARRI BILL AND THE CONFLICTS
OF INTEREST BILL WOULD ALLOW THE GOVERNMENT TO CLAIM
CREDIT FOR HAVING ACCOMPLISHED MORE OF ITS PROGRAM
(INCLUDING ACTING ON TWO ISSUES THAT HAVE LANGUISHED
THROUGH MULTIPLE PRIOR ITALIAN GOVERNMENTS). PASSAGE OF
THE TWO PIECES OF LEGISLATION WOULD ALSO SET ASIDE SOME
ME
HIGHLY CONTROVERSIAL ISSUES BEFORE THE CAMPAIGN SEASON
HEATS UP.


19. (SBU) ASSUMING THE GASPARRI LAW COMES INTO FORCE (WITH
OR WITHOUT ACCOMPANYING CONFLICT OF INTEREST LEGISLATION),
IT WILL TAKE CONSIDERABLE TIME TO ASSESS IT REAL IMPACT
UPON COMPETITION AND FAIR PLAY IN THE ITALIAN
MEDIA/COMMUNICATIONS SECTOR. IN OUR VIEW, THE ITALIAN
MEDIA NOW DOES NOT SUFFER FROM A LACK OF DIVERSE
OPINION. HOWEVER, THE GASPARRI LAW CLEARLY SETS THE STAGE
FOR FURTHER CONCENTRATION OF MEDIA OWNERSHIP. BERLUSCONI
AND HIS SUPPORTERS SEEM UNSWAYED BY PERCEPTIONS OF OTHERS
(OUTSIDE THIS MISSION) THAT THIS LEGISLATION FURTHER
CEMENTS A MEDIA SYSTEM LACKING DIVERSITY OF OWNERSHIP. END
COMMENT.

SEMBLER
R



NNNN
2003ROME05557 - Classification: UNCLASSIFIED

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