ROME, July 7 (Reuters) – Prime Minister Silvio Berlusconi said on Thursday he may re-present a controversial proposal, withdrawn by Italy’s government this week, that would freeze a penalty due to be paid by his Fininvest holding company.

The measure — which would have shielded Fininvest from a 750 million euros ($1.09 billion) penalty it may be ordered to pay rival conglomerate CIR — was inserted into the government’s austerity budget.

But in a rare climbdown, Berlusconi scrapped it on Tuesday after criticism from media and the left-wing opposition.

“The proposal is sensible and balanced and we can consider reinstating it during the budget’s passage through parliament,” Berlusconi said at a book presentation.

Berlusconi called the measure “sacrosanct”, before adding even good laws had to be shelved in Italy if they were seen to benefit the prime minister.

Slipped unexpectedly into a package of budget measures, the clause was attacked as an “abuse of power” by the centre-left opposition after it was first reported on Monday — forcing Berlusconi to backtrack the next day.

It would have ordered courts to suspend compensation orders of more than 20 million euros until a final verdict was issued, on payment of a guarantee.

Critics immediately dubbed the measure the “save Fininvest law”, saying it was tailor-made to protect the prime minister’s holding in its legal battle with CIR.

A court ordered Fininvest to pay 750 million euros to CIR as compensation for bribing a judge in a takeover battle for publisher Mondadori in the 1990s.

Fininvest, which also controls broadcaster Mediaset , is appealing the verdict and the payment is on hold.

A decision by Milan judges is expected on Saturday but the case is likely to be appealed again, ending up in Italy’s highest appeals court.

Withdrawal of the measure was the latest blow to the 74 year-old premier, who is engulfed in sex and financial scandals and reeling from heavy local election and referendum defeats.

A 750 million euro penalty would severely hit Berlusconi’s business interests and benefit CIR head Carlo De Benedetti, one of his bitterest business rivals and owner of the fiercely anti-Berlusconi daily La Repubblica.

($1 = 0.689 Euros)

Source: Reuters