Milan’s urban Empire crumbles? Mayor Sala trapped in explosive real estate scandal doesn’t resign

Milan’s political landscape is currently gripped by a burgeoning real estate scandal, placing its mayor, Giuseppe Sala, and the future of the city’s urban development at a critical juncture. This intricate situation, involving allegations of corruption and undue influence, has led to the resignation of a key councillor and exposed deep divisions within the city’s ruling coalition.

The picenter of the scandal: real estate allegations

The “mounting real estate scandal” in Milan centers on a suspected “corrupt agreement” related to the future of the iconic San Siro Stadium and its surrounding district. Investigations suggest a “criminal plan related to potential business on the San Siro area,” with its progression contingent on Mayor Sala’s decisions. The prosecutor’s office suspects that financial contributions to Sala’s electoral campaigns from developers might be linked to this alleged “Ambrosian ritual”—a term used to describe the purportedly illegal acceleration of building practices.

Specifically, the investigation by the Guardia di Finanza is scrutinizing financial backing for Sala’s 2021 electoral campaign, noting contributions such as 2,000 euros from RealStep Srl. While this amount is modest for a metropolitan election, other, larger contributions ranging from 5,000 to 30,000 euros, totaling 147,000 euros, are also under review. The names of these donors, with the exception of RealStep Srl, have been redacted in the documents provided to the inquiry, raising questions about ongoing new assessments.

A central figure in the investigation is Giuseppe Marinoni, the former president of the Landscape Commission, now accused of corruption. It is alleged that Marinoni received undisclosed compensation and professional assignments from private developers, including Coima and Kryalos, while simultaneously evaluating their projects. This dual role has led to accusations of false ideological declaration by a public official and abuse of office, with the prosecution suggesting a quid pro quo between professional engagements and favorable project evaluations. Marinoni is even referred to as the “hidden drafter of the shadow Pgt” (urban planning document).

A prime example cited is the “Pirellino” project (via Pirelli 39). Documents suggest that Marinoni’s initial negative opinion on this project was reversed to a “favorable conditional” one after interventions by figures like architect Stefano Boeri, General Director Christian Malangone, and Councillor Giancarlo Tancredi, with Boeri reportedly speaking directly to Sala. Despite this, Mayor Sala has presented the Pirellino case as evidence of his commitment to public interest, even though a Council of State ruling reportedly condemned his administration for sacrificing developer expectations in favor of public interest.

The immediate human impact of this scandal is significant: 4,500 families have been left without homes despite having purchased them, due to the ensuing investigations and administrative paralysis. These families, represented by the “Comitato Famiglie Sospese,” have been protesting outside Palazzo Marino, the city hall, demanding answers and solutions.

The Mayor of Milan, Sala, now under investigation

Mayor Sala’s stance: defiance and claims of “Clean hands”

Mayor Giuseppe Sala has resolutely chosen not to resign, declaring he will “stick to his chair” to prevent the appointment of a government commissioner for Milan. In a public address to the City Council, he emphatically stated, “My hands are clean,“ asserting that no action taken during his tenure was for personal gain. Sala revealed that he learned about the investigation through the media, not official channels, and questioned why such confidential information was leaked.

He projected an image of steadfastness, asserting his determination to continue: “I am here with all the passion, with all the desire, with all the love for this city of which I am capable”. Sala believes justice and politics should remain distinct. He also defended the city’s “verticalization” (skyscraper development), stating it should not be feared, and sees it as essential for gaining more space for social amenities, green areas, and urban revitalization. He cited Carlo Ratti and Legambiente Lombardia as supporting his vision of Milan as a European model of urban transformation.

A notable moment during his council address was his heated confrontation with FdI councilor Enrico Marcora, whom Sala accused of attempting to gain fame by posting a “galeotto” (prisoner) caricature of him. Sala stated he had reported Marcora’s “gesture” to top political figures like the President of the Council and the President of the Senate, implying political consequences for Marcora. An inappropriate gesture in politics, like a schoolboy complaining to his teacher because one of his classmates is pulling faces at him. But this is all that politics has to offer today. Marcora, in turn, dismissed Sala’s reaction as “satire” and called the mayor “a small mayor”.

The fact remains that the Mayor saw skyscrapers spring up like mushrooms in Milan without suspecting that something strange was going on, that someone, perhaps, was doing something excessive to speed up the process.

Tancredi’s Resignation: The Scapegoat

In a significant development, Giancarlo Tancredi, the Councillor for Urban Regeneration, resigned, describing himself as a “pure technician” made into a “scapegoat” for the judicial inquiry. His resignation came amidst strong pressure from the Democratic Party.

Tancredi publicly expressed his profound disappointment with the majority’s stance, stating they demanded his resignation “without knowing the facts” and without any formal condemnation against him. He criticized the tendency to reduce complex issues to “political tacticalism” and the search for an individual to blame. He also lamented the absence of a national organic law for urban planning, emphasizing that urban development is governed by a complex interplay of political strategies, ideals, evolving needs, and public/private interests. The prosecution had requested house arrest for Tancredi, and his resignation may serve to avert this, as the request was reportedly conditional on his official role.

The search for Tancredi’s successor is already underway, with names like Elena Granata, a Politecnico professor specializing in “City Analysis,” and Matteo Bolocan, another urban planning professor, being considered. The Democratic Party aims for a “guarantee figure” to signal a break from past practices.

A Weakened Council Held Hostage: The Future of Milan’s Projects

Sala’s decision to remain in office effectively makes him a “half-mayor,” held “hostage of his own majority” due to the Democratic Party’s fear of triggering early elections and potentially losing the city council. This internal fragility is evident in the council’s frequent applause for Sala, which observers describe as a “well-orchestrated claque”.

The political situation is complicated by deep divisions within the ruling coalition. The Democratic Party is reportedly pushing Sala to adopt a “decidedly progressive” agenda centered on “equity and the right to housing”. This includes prioritizing social housing initiatives and agreements with private entities to stabilize the rental market, with the goal of achieving “zero vacant homes” in public housing. The “radical-majorinian” wing of the Pd specifically advocates for a return to a “pre-revolution Milan,” eschewing skyscrapers.

A major point of contention is the sale of the San Siro Stadium. The dossier for its sale to Inter and Milan has been postponed until September, deliberately pushed back after the August holidays, to allow the real estate investigation to “settle”. The “red-green left” (Alleanza Verdi e Sinistra, or Avs) vehemently opposes the project, denouncing it as an “endless gift to real estate developers” and an act of “land consumption”. Angelo Bonelli, co-leader of Avs, has explicitly stated that his party will vote against the stadium sale if Milan’s urban planning continues unchecked, advocating for greater “legality and transparency”. This stalemate over San Siro is emblematic of a broader political paralysis.

The combined effect of these internal conflicts and ongoing investigations is a projected “slow agony” and “paralysis” for Milan over the next two years. Key urban development projects, such as the Pirellino and student housing, face suspension. This “real estate freeze” has already severely impacted the city’s artisan sector, with approximately 1.5 billion euros in frozen activities related to housing construction. Despite this, it’s notable that demand and prices for luxury properties in Milan continue to rise, highlighting a disconnect between the political crisis and certain segments of the market.

Opposition Perspectives and the Future Outlook

The Milan crisis has triggered varied reactions from the opposition parties:

• The Lega (League) calls for immediate early elections, criticizing Sala’s administration as “terrible” and transforming Milan into “a boutique for millionaires,” riddled with “degradation, insecurity, and some green follies”. Its leader, Matteo Salvini, also suggested a “coincidence” between the Milan investigation and his own legal issues.
• Forza Italia (FI), led by Antonio Tajani, advocates for “guarantism,” asserting that Sala should not resign merely due to an investigation. Tajani emphasizes that the issue is the city’s administration, not judicial interference. He has also extended an offer to Carlo Calenda’s Azione to form an alliance for a civic candidate in Milan, targeting the city’s “productive bourgeoisie”.These terms refere to something that has not existed in Milan for decades, but they cover the interests of various dynasties of rentiers.
• Fratelli d’Italia (FdI) views Sala as “desperately clinging to his chair” and criticizes the ruling majority for its fear of elections. They argue for a “turning point” in the city’s governance.
• Within the broader center-left, the Movimento 5 Stelle (M5S) criticizes Milan’s development model for allegedly marginalizing the middle and lower classes and demands Sala’s resignation. They align with Avs (red greens united) in opposing the San Siro sale. The M5S tends to seek power, above all else, and then hold onto it as tightly as possible.
• Azione, despite supporting Sala, insists that the city council should not become subservient to the Prosecutor’s Office. Calenda’s party supports proceeding with the “Salva Milano” plan and the stadium sale, while acknowledging the need to resolve conflicts of interest within the technical administration. Azione is the warm blanket under which the interests of the dominant wealthy groups hide.
• Italia Viva (IV), under Matteo Renzi, also upholds the principle of “guarantism,” reiterating that legal judgments should be made in courtrooms and encouraging Sala to continue his work.

The political uncertainty and internal strife mean that Milan, a city renowned for its dynamism and modern development, faces a period of potential stagnation and administrative paralysis. The ongoing investigations, coupled with the fractured political landscape, risk undermining future projects and deepening the existing urban challenges. The ability of the city council to navigate these complexities and resume a coherent path forward remains to be seen.