The Italian Prime Minister Mr Silvio Berlusconi said this evening that he had told German Chancellor Mr Gerhard Schroeder he regretted any misunderstanding over a Nazi jibe he made at the expense of a German MEP.
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But in a statement, Mr Berlusconi added that he had been seriously offended by criticism levelled at him during a debate in the European Parliament yesterday, that led up to the outburst.
Mr Berlusconi and Mr Schroeder spoke by telephone after the German leader demanded that he apologise for comparing a German lawmaker to a Nazi concentration camp guard.
Mr Schroeder said after the phone call that he considered the row over.
"This comparison is inappropriate and completely unacceptable," Mr Schroeder said at the beginning of a speech in the German parliament earlier today. "I expect that the Italian prime minister will apologise fully for this unacceptable comparison," he said to wide applause.
Mr Berlusconi made the remarks in a debate in the European Parliament in Strasbourg after he made a presentation of Italy's priorities for its six-month presidency of the European Union, which began on Tuesday.
He took a verbal swipe at German Socialist deputy Mr Martin Schulz, suggesting the German could play the role of a Nazi concentration camp guard in a film under production in Italy. Mr Schulz had questioned Mr Berlusconi's alleged conflict of interest between his political office and his extensive Italian media interests.
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"I know there is in Italy a man producing a film on the Nazi concentration camps. I would like to suggest you for the role of Kapo. You'd be perfect," Mr Berlusconi addressing German social democrat, Mr Martin Schulz in Brussels yesterday.
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Mr Berlusconi said this morning he believed the row was "closed" and accused centre-left opposition forces of orchestrating the controversy and deliberately trying to wreck his appearance at the parliament.
The Italian Foreign Ministry accused Mr Schulz of causing an "unacceptable offence" by attacking the prime minister.
Mr Berlusconi refused to retract his comments when asked by the President of the Parliament, Mr Pat Cox yesterday, sayinghe had made nothing more than an "ironic joke". Mr Cox said today Mr Berlusconi's comments were "extremely regrettable" and "unprecedented".