On Thursday after a day-long meeting at the headquarters of the International Automobile Federation (FIA) in Paris the World Motor Sport Council stripped the McLaren-Mercedes team of all its points won in this season in the constructors' standings. FIA decided that the McLaren-Mercedes team has used secret technical documents acquired from Ferrari. The McLaren-Mercedes team was also fined with $100 million dollars but they will be able to continue to compete in Formula One. Earlier this week FIA threatened McLaren with a two-year suspension if it were proven it had used the material to gain an unfair advantage.

The spy scandal between Ferrari and McLaren-Mercedes ignited earlier this year when two computer discs with Ferrari material were found in a search of the former McLaren-Mercedes chief designer Mike Coughlan's house carried out on the orders of the Italian team. Stepney, the Ferrari mechanic who allegedly supplied the documents in April, was fired and he is also facing criminal charges filed by Ferrari against him in a court in Modena, Italy for attempted sabotage before the Monaco Grand Prix. As a result, the affair was dubbed "Stepneygate."

In July FIA said McLaren-Mercedes Formula One team won’t be sanctioned in the “spy” scandal with their rivals Ferrari. Tough, FIA acknowledged McLaren-Mercedes was in possession of confidential Ferrari information and is therefore in breach of article 151c of the International Sporting Code.

"However, there is insufficient evidence that this information was used in such a way as to interfere improperly with the FIA Formula One World Championship. We therefore impose no penalty," the FIA said in a statement at the time.

Still FIA warned McLaren-Mercedes that it might change its decision if new evidence will come along.

"If it is found in the future that the Ferrari information has been used to the detriment of the championship, we reserve the right to invite McLaren-Mercedes back in front of the WMSC where it will face the possibility of exclusion from not only the 2007 championship but also the 2008 championship," the FIA said in July.

Few days later on August 1st the FIA president, Max Mosley, revealed that following Ferrari's violent dissatisfaction with the outcome of World Motor Sport Council hearing, he has referred the matter to the FIA's appeal court.

Also in August in an open letter send to Italian Automobile club head Luigi Macaluso the McLaren-Mercedes boss Ron Dennis said that in fact the former Ferrari head of performance Nigel Stepney informed ex-McLaren-Mercedes chief designer Mike Coughlan in March that Ferrari were using an illegal floor attachment mechanism at the start of the season. Also Dennis said that Coughlan and Stepney have used the information obtained from Ferrari in order to join other team.

But last week the FIA had announced that new evidence had been found that warranted a new hearing. This evidence reportedly included emails between McLaren-Mercedes driver Fernando Alonso and the team’s test driver Pedro de la Rosa. Also transcripts of phone and text message conversations between Coughlan and Stepney were added to the dossier.

Though after today’s hearing McLaren-Mercedes drivers Lewis Hamilton and Fernando Alonso, who lead the drivers' standings, will be allowed to keep their points.

Last Sunday, the McLaren-Mercedes team managed to obtain a double in the Italian Grand Prix at Ferrari's home track of Monza, Hamilton heads the drivers' standings with 92 points, with Alonso in second with 89.

Ferrari drivers Kimi Raikkonen and Felipe Massa are third and fourth with, respectively, 74 and 69 points. After today’s decision Ferrari now takes over the lead in the constructors' standings, with BMW in second place.

In a statement to journalists after the decision was made public, McLaren-Mercedes boss Ron Dennis said that he "did not accept" the decision to punish his team.

“The most important thing is that we will be going motor racing this weekend, the rest of the season and every season. This means that our drivers can continue to compete for the World Championship. However having been at the hearing today I do not accept that we deserved to be penalized in this way”, Dennis said in a public statement.

He added that the World Motorsport Council received statements from Fernando Alonso, Lewis Hamilton and Pedro de la Rosa stating categorically that no Ferrari information had been used by McLaren and that they had not passed any confidential data to the team.

In Dennis’ opinion Coughlan and Stepney are the only ones responsible for the scandal.

“We are also continually asked if McLaren didn't use the information, what was the reason for Stepney and Coughlan collecting all this data about Ferrari? We can only speculate as neither Coughlan nor Stepney gave evidence at today's hearing, but we do know that they were both seeking employment with other teams, as already confirmed by both Honda and Toyota”, he said.
After the FIA’s decision was announced Ferrari said they were happy that the “truth had emerged”
“Ferrari acknowledges the decision of the FIA to sanction Vodafone McLaren Mercedes for its breach of Article 151c of the International Sporting Code,” said the Italian team in a statement.

This weekend Formula One returns to the Spa Francorchamps circuit for the Belgian Grand Prix and McLaren-Mercedes hopes to repeat their 1-2 victory in Monza.

Sunday’s race will be the last to be held in Europe and the last three races will take place in Japan, China and Brazil.

Fernando Alonso said he was looking forward to racing again at his favourite track. "It is very demanding and with the long lap and all the different characteristics, you need to work hard with the team to get the right balance," he said. "You need to have total concentration for every lap and I am motivated to get there and fight for the win.” Last weekend in Italy was a special result for me and the team. The car was really fast and we are working to take that performance to Spa. There are some similar characteristics between Spa and Monza, as both demand a lot of power, so hopefully we will carry that over and be quick."

Raikkonen, however, appears to be just as happy at Spa, having won the last two Belgian Grands Prix - while driving a McLaren.

"We will fight as long as arithmetic allows us to. We can't leave anything undone," he said.” We still have a realistic chance. It is not going to be easy because we again lost points in Italy.