(STRASBOURG) - The EU parliament on Tuesday refused to allow the use of phone tapping evidence involving Italian Foreign Minister Massimo D'Alema, a former MEP, in investigations into a 2005 banking scandal case in Italy.

The case goes back to irregularities allegedly committed by the Italian insurer Unipol in increasing its capital in the Italian bank, Banca Nazionale del Lavoro (BNL), then the focus of a takeover bid by Spanish bank BBVA.

The investigation is notably looking at the actions of Antonio Fazio, who was governor of the Italian central bank.

Fazio went on trial in absentia in Italy last month for his alleged role in influencing the banking takeover bid.

The former governor and 16 others are being tried for the way they handled the highly controversial banking takeover bid in 2005 when Italian banks tried to freeze out the Spanish rival.

D'Alema is not accused of any wrongdoing.

The case has its origins in the tapping of Fazio's telephone at the central bank.

The European Parliament on Tuesday turned down a request from the Milan prosecutor's office, deciding "not to authorise the use of the tapped phone calls in question," involving D'Alema, who was a member of the assembly at the time of the allegations.

The chamber noted the Italian court opinion that there was sufficient evidence to judge the accused without the use of the phone tapping evidence.

The European assembly also decided not to lift D'Alema's parliamentary immunity for the period concerned.

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