The European Court of Justice ruled that the European Central Bank did not have the authority to investigate Silvio Berlusconi’s ownership in Banca Mediolanum following his conviction for tax fraud. Despite his controversial past and legal troubles, the court determined that the ECB could not lawfully oppose Berlusconi’s ownership of a qualifying holding in the bank as he had acquired the stake prior to the transposition of EU law on the matter. This ruling represents a posthumous win for Berlusconi, who maintained a stake in the Italian bank despite the ECB’s objections.
The dispute over Berlusconi’s ownership in Banca Mediolanum has been ongoing for years, with the ECB raising concerns about his ownership following his conviction for tax fraud. The ECB, as the EU’s chief financial supervisor, is tasked with ensuring that individuals owning more than 10% of a bank’s shares are of good repute. In 2016, the regulator took issue with Berlusconi’s stake in the bank, but the latest ruling from the European Court of Justice overturned a previous decision that had found in favor of the ECB. The court concluded that the ECB did not have the right to investigate a transaction that occurred when the bank was taken over by its own subsidiary.
Following the financial crisis, the ECB took over the responsibility of supervising EU banks from national authorities. In 2014, the Bank of Italy had ordered Berlusconi to sell his shares in Banca Mediolanum, a decision that was later overturned by domestic courts. Despite facing multiple legal challenges throughout his career, including charges of mafia affiliation, bribery, and underage prostitution, Berlusconi’s only conviction was for tax fraud in 2013. He was sentenced to four years in prison and expelled from parliament.
Berlusconi passed away in 2023, but the legal battle over his ownership in Banca Mediolanum was continued by his heirs and family members. Many of them serve on the board of Fininvest, his investment company, and maintain ties to his other business interests, such as broadcaster Mediaset. While the ECB and Fininvest did not provide immediate comments on the ruling, the decision by the European Court of Justice represents a significant outcome in a long-standing dispute over Berlusconi’s ownership in the Italian bank.
The ruling by the European Court of Justice regarding Silvio Berlusconi’s ownership in Banca Mediolanum highlights the complex legal and regulatory challenges surrounding the governance of European banks. The court’s decision to overturn the ECB’s objections to Berlusconi’s stake in the bank raises questions about the limits of the ECB’s authority in overseeing bank ownership and the implications for individuals with controversial legal histories. Despite Berlusconi’s contentious past, the court’s ruling allows his family to continue their involvement in the affairs of Banca Mediolanum, marking a significant victory in a high-profile legal battle.
