ITALY . . . SCANDAL NEARS BILLIONAIRE CHIEF

Media magnate and new Italian Prime Minister Silvio Berlusconi edged closer to being implicated in a corruption scandal when prosecutors issued an arrest warrant for his brother. Paolo Berlusconi, who ran several of his sibling's companies, has been charged with bribing financial regulators. He's since vanished, with police now negotiating with his attorney for his surrender. This isn't the first embarrassment for the new government of Prime Minister Berlusconi, who himself has been trying to soften his party's ultranationalist edges. In a country plagued by political and financial scandal, will this latest news tarnish the Teflon PM? "The big blow is in terms of image," says TIME Rome reporter Greg Burke. "What's the difference between Berlusconi's business and his brother's? Not much."