Signor Tanzi appeared in court, unlike most of the other accused executives, who exercised their right under Italian law not to attend. Outside the courtroom, dozens of defrauded Parmalat shareholders protested about the collapse, one of Italy’s biggest post-war financial scandals.

Some held banners thanking the prosecutors. Inside the court a relaxed Signor Tanzi, who arrived an hour late, sat in the front row, smiling and joking with his lawyers.

Giovanni Bonici, the former manager of Parmalat Venezuela and of Bonlat, the Cayman Islands subsidiary at the heart of the fraud, was one of the few executives to join Signor Tanzi in court. He observed that it was “obviously not a beautiful day in my life”.

Signor Bonici said he had attended to maintain his innocence on the grounds that he had “no knowledge of the facts”, adding: “I am as much a victim as the investors.”

The €14 billion (£9.5 billion) fraud became known as “Italy’s Enron”. The Italian branches of Parmalat’s auditors, Deloitte and Grant Thornton, are also charged with helping Parmalat to mislead investors. Both have denied any wrongdoing and Grant Thornton severed the ties to its Italian branch after Parmalat’s collapse.

Signor Tanzi’s defence team has called representatives from the Bank of Italy, Consob, the Italian market regulator, and banks such as Capitalia and Mediobanca. Fabio Belloni, Signor Tanzi’s lawyer, said: “We will not escape from this trial, we will confront it.”

The trial is presided over by Judge Luisa Ponti, who has agreed that “all civil parties to the case” can testify. This means that the thousands of small shareholders who lost their savings and are seeking compensation can testify — although it is not clear how many will do so. The issue is expected to dominate the next hearing, set for December 2.

In June, 11 other Parmalat executives, including Signor Tanzi’s brother and son and Fausto Tonna, the former chief financial officer, were given sentences of up to two and half years under a plea bargain.

As first-time offenders they are not expected to spend time in prison. In July prosecutors asked for Nextra, the Italian fund manager, and four leading banks — Citigroup, Morgan Stanley, Deutsche Bank and UBS — to also be tried. Hearings on this request are due shortly.

Giampiero Biancolella, another of Signor Tanzi’s lawyers, insisted that the defence’s strategy was not to shift blame from the company to the banks. “We cannot transform ourselves from the accused into accusers,” he said.

Parmalat, which is being restructured under Enrico Bondi, a government-appointed administrator, is due to relist next month after transferring €12 billion of debt into equity.

RISE AND FALL OF EMPIRE THAT BEGAN AS A DELICATESSEN

1961: Calisto Tanzi, 22, founds Parmalat after inheriting a small family delicatessen. He transforms it into a major milk and yoghurt company and later diversifies into pasta sauces, fruit juice and biscuits.

1990: Parmalat lists on the Milan stock exchange and gains subsidiaries abroad. The company buys Parma Football Club, with Tanzi’s son Stefano as chairman.

1999: Parmalat sets up Bonlat, a subsidiary, in the Cayman Islands.

2003: Doubts arise over Parmalat’s debts, and Fausto Tonna, chief financial officer, resigns. The company misses a €150 million bond payment in December and it emerges that it cannot service its debts. Tanzi resigns. Bank of America says that a document showing €4 billion in Bonlat’s account is forged. Parmalat declares bankruptcy, Tanzi is arrested and admits that the hole in Parmalat’s accounts is €8 billion. Inquiry reveals that real debt is €14 billion.

2004: Tanzi claims his managers acted of their own accord, but admits siphoning off €500 million. The US Securities and Exchange Commission investigates sales of Parmalat bonds by Bank of America and other banks.

2005: Plea bargaining deal in June, under which 11 executives, including members of Tanzi’s family, are given symbolic, short jail sentences. Trial of Tanzi and 15 others opens in Milan in September, with the next hearing set for December 2. Thousands of small shareholders demand compensation for lost savings.

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