Impetus for Italy to change

Matthew Lynn

Parmalat could be just what Italy needs to switch from predominantly family-led corporations to those run by professional managers

The scale and depth of the scandal engulfing Parmalat Finanziaria is breathtaking. At least E8bn ($10bn) is missing. The company, which sells milk products, desserts and fruit juices in 30 countries, has been declared insolvent. Its founder, Calisto Tanzi, is in jail on suspicion of committing fraud. Parmalat and top executives, including Tanzi and his son Stefano, "engaged in one of the largest and most brazen corporate financial frauds in history," according to the US Securities and Exchange Commission in a civil complaint. The Parmalat affair is too complex and details are too few and ...