Berlin, July 04: Italian prime minister Silvio Berlusconi expressed his regrets to Germany today over a Nazi slur that has reopened painful wounds and underlined an excruciating sensitivity about its past. After a telephone conversation between them, chancellor Gerhard Schroeder said Berlusconi had "expressed his regrets about his choice of expression and the comparison. I told him that for me the incident was closed". "The rest has to be worked out at the European parliament", Schroeder said. Yesterday, under heckling by the German Mep Martin Schulz, Berlusconi shot back: "A producer is now shooting a film about the Nazi concentration camps. I propose you to play the role of Capo." A Capo was chosen by the Nazi SS from camp detainees and was often given monitoring or guard duties.

Speaking to parliament earlier today, Schroeder had called the remark "totally unacceptable" and said he expected the Italian prime minister "formally to apologise."

Berlusconi`s jibe has given Germany another unwelcome jolt about its past, an era that remains a potent, volatile and highly sensitive subject in the European giant.

Meanwhile, a statement from Berlusconi`s office said he had expressed his regrets to German chancellor and added that he had also been gravely offended.

"The prime minister also reiterated what was already expressed yesterday, his regret that his remark, which was meant only to be ironic, had been misinterpreted, the statement said.

Bureau Report