ROME — Italy’s ruling League party faces bankruptcy and may even have to change its name after an Italian court ordered the immediate seizure of €49 million following a fraud investigation.
An appeals court in Genoa on Thursday backed an April decision by Italy’s highest court calling for party funds and other assets to be confiscated.
The case involves the far-right party’s founder Umberto Bossi, who was convicted in July 2017 of embezzling hundreds of thousands of euros in public funds between 2008 and 2010.
Bossi was given a 30-month jail sentence and resigned as party secretary, although he continued to represent the League in the Senate. Party treasurer Francesco Belsito was sentenced to just under five years in prison.
However, the League is not believed to have anywhere near the kind of money it has been ordered to hand over. Around €3 million has already been confiscated and according to the party’s own estimates, its coffers hold just over €5 million.
The League’s deputy secretary, Giancarlo Giorgetti, a party heavyweight, warned last week that having funds seized would mean “the end of the League” in its current form, fueling talk of a change to the party’s name and statute. The League has already rebranded of late, changing its name from Northern League in the run-up to March’s election.
However, Matteo Salvini, party leader and interior minister, struck a defiant tone Thursday after the court’s ruling.
“They can strip us of everything, if they want,” he said during a press conference. “But we’ll continue to be in politics. They can do whatever they want, we have Italians on our side.” He didn’t say if the League will appeal the court’s decision.
Prime Minister Giuseppe Conte said the League’s financial troubles won’t have repercussions for the government. But they will inevitably cause tensions within the shaky coalition with the 5Star Movement.
The 5Stars have traditionally put political transparency among their top priorities and the verdict against the League risks increasing divisions between the two sides, which often battle over policy issues and economic measures.
“It’s clear that for a party to continue its political activity becomes difficult if there are no financial resources,” Conte said Thursday. “I hope an alternative solution can be found, but the situation is objectively difficult.”