Spotlight: A TANGLED WEB 1 Barbara Montereale (right) in what she saysis Berlusconi's Rome residence 2 Noemi Letizia with diamond necklace, a gift from Berlusconi 3 Veronica Larionowseeking a divorce from Berlusconi 4 Villa Certosa The PM's Sardinian mansion Silvio Berlusconi Briefing HEN THE c-8 suunalr BEGINS IN Italy on |uly 8, it will undoubt- edly garner a flood ofattention for its host. But while Prime Minister SilvioBerlusconi wasplanning to bask in the results of his bold, last-minute decision to switch the siteof the meet- ing from La Maddalena on Sardinia to Lîquila, the centralcity still reeling from April's deadly earthquake, it is the stories ofBerlusconi asa party guy that arecapturingthe imagination. Since April, the coverage ofthe 7z-year-old billionaire mogul turned politico hasread like something between an airport romance noveland softporn. On April 26, Berlusconi showed up at the r 8th birthday party of leggy Neap-olitan blondNoemi Letizia with the eift of a diamondnecklace. Within t*ó d"yr, Berlusconi's wife of zoyears, Veronica Lario, announced she wanteda divorce. claiming that her husband "frequents underage females." Thesubsequent mediastorm has rainedan almostdaily shower of gos- sipytales upon the Italian public. On fune 5, Spanish daily ElPaispublished photographs that showed topless women and a nude man partying at Berlusconi's Sardinian villa. And then therewasthe investigation, later dropped, into allega- tions that he d useda governmentair- planeto flyin youngwomen and showbiz performersfor private functions. But the latestBerlusconitidbit is potentiallythe most damaging. On fune r7,investigators in the southern city of Bari confirmed theywere carrying out a criminal investigation into allegations that businessman Giampaolo Tarantini hadhired prostitutes to attendseveral Berlusconi bashes, althoughBerlusconi himself is not under investigation. On |une 17, one of the women, Patrizia Dîddario, told the Milan daily Corriere della Sera that shewas paid sev: eralthousand euros to attend two dinner parties at Berlusconi's Rome residence last fall and that shestayed the nieht of Nov. 4. She says shesecrltly made"audio recordings during the parties, which she turned overto prosecutors. Two days later, a friend of D Addario's, Barbara Montereale, told newspaper La Repubblica that she, too, was paid to attend the Nov. 4 party, but left after dinner. Montereale described her friend asa professional escort and said DAddario hadtold her she'd had sex with Berlus- coni at the party. In interviews since, DAddario hasneitherconfirmed nor de- nied Montereale's account. Tarantini told Italian news agency ANSA that he only reimbursed the women for their traveÍ and expenses, andthat Berlusconi didn't know about the payments. Berlusconi says he hasdone nothing wrong and is simply a victim of a hate- filled press and opposition that want to bring him down with "trash"and "gossip." It's possible, ifthe investigation into the prostitution allegations cJmeto any embarrassing conclusions, that Ber- lusconi might haveto stepdown, open- ing the way for a caretaker government headed by someone like Bank of Italy GovernorMario Draghi or Economy Minister Giulio Tremonti. But don t count Berlusconi out yet.Perennial chal- lengers like parliamentSpeaker Gianfranco Fini on the riqht and former Prime Minister MassimobAlema on the Ieft,have largely lost credibility in the face oftheir opponent's political savvy. Italian politicsis beginningto look like a season of Celebrity Survivor.Andnot only is Berlusconi the reigning championof - thisreality show, he is also its executive prooucer.-BY IEFF TSRAELY I r0