Carlo Fidanza, an MEP for the right-wing Brothers of Italy (FdI) party, said Friday that he was suspending himself after an investigative report by the Fanpage online newspaper into alleged attempts to gain off-the-books funding.
Fanpage's investigative journalist, who posed as a businessman interested in funding the party in exchange for benefits for his firm, also took footage of meetings via a hidden camera in which participants made racist, sexist and anti-Semitic comments.
A report published on Fanpage's website and broadcast by La7 television even included footage of people expressing admiration for Hitler.
"After last night's packaged report by Fanpage and broadcast by (La7 show) Piazzapulita, I want to reiterate to my friends, voters and all of my party that I have never received illegal funding," Fidanza said in a statement.
"I have never had any extremist, racist or anti-Semitic attitudes.
"I consider it appropriate to suspend myself from all party roles and activities in order to protect Brothers of Italy from attacks that seek to take advantage of the situation".
During one meeting, the undercover reporter was allegedly asked to make a contribution to a FdI candidate running for the Milan city council and told he could make the payment off-the-books at a bar.
A person convicted of apology of Fascism who allegedly organized such operations allegedly told the reporter that he had a series of "washing machines" that he used to launder campaign contributions.
FdI leader Giorgia Meloni said there was no space for racism or anti-Semitism in her nationalist party.
She added that she would not judge anyone on the basis of an edited video report and asked Fanpage to turn over all the footage it had recorded.
Ruth Dureghello, the president of Rome's Jewish Community, expressed dismay.
"There can be no space in parties within the realm of the Constitution for those who do Fascist salutes, pay homage to Hitler and insult Jews and black people," Dureghello said via Twitter.
FdI Milan council candidate Chiara Valcepina said she had issued a writ warning Fanpage and La7 against re-transmitting the report.
ALL RIGHTS RESERVED © Copyright ANSA