STRASBOURG, France (CNN) -- Silvio Berlusconi spoiled Italy's debut in the EU presidency when he appeared to compare a German lawmaker with a Nazi concentration camp commander during a speech to the European Parliament.
The controversial Italian prime minister told Socialist MEP Martin Schulz: "I know in Italy there is a producer, producing a film on Nazi concentration camps. I will suggest you for the role of kapo (commander). You would be perfect for that role."
Berlusconi was laying out his agenda in Strasbourg Wednesday at the start of Italy's six months in charge of the rotating EU presidency.
His speech was initially interrupted with protests from about 15 Green members who held placards in various languages saying, "All equal under the law."
Berlusconi has been condemned by opponents at home for changing the judicial system and making himself immune from prosecution while on trial for allegedly bribing judges. (Full story)
The conservative billionaire -- a media magnate and allegedly the richest man in Italy -- has been dogged by a series of corruption cases in Italian courts. Berlusconi has faced various charges, including alleged bribery of judges, money laundering, tax evasion and false accounting.
He has lately persuaded Italy's parliament to back a series of measures designed to freeze proceedings against him and to prevent him facing further charges while he remains in office. This, along with his wide-reaching business interests, drew criticism at the weekend from some European newspapers. (Full story)
As he addressed the European Parliament, the prime minister said: "There's a great deal of moral and intellectual responsibility on our shoulders."
But he later lost his cool during a question-and-answer session, when Schulz made reference to Italy's new immunity law.
Berlusconi refused to withdraw his Nazi remark when given the opportunity by European Parliament President Pat Cox, and later insisted he had made an ironic joke in reaction to what he said were harsh accusations against himself and his country.
Following Berlusconi's remark, an upset Schultz responded: "Let me say to him my respect of the victims of fascism will not permit me to deal with that kind of claim at all, but it's very difficult for me to accept that a council president should be exercising this office at all when he comes up with this kind of statement and when he is in the least contradictive."
To that, Berlusconi retorted: "Some people may not have heard what Mr. Schultz has said, but he offended me personally and he was gesticulating and he used a tone of voice which is not acceptable in a parliament such as this one.
"And so I spoke with irony when I was so speaking. If you are not able to understand irony I'm very sorry, that's too bad, but I am not withdrawing what I said with irony if Mr. Schultz doesn't withdraw the personal offenses that he made against me."
A few minutes later, Berlusconi added, "To the adversaries I would like to say with a smile that they shouldn't make our presidency into a tragedy. In fact, six months will soon be over."
Members of the parliament responded with laughter, but Cox suspended the session.
Journalist Ian Black, speaking from the parliament, told CNN: "This is a very bad start indeed. There are a lot of angry people in Strasbourg."
Berlusconi, in laying out his plan for the EU, told the parliament Europe needed to stimulate more wealth, invest in technology and push through labor and pension reforms.
He will be expected to supervise closer cooperation among the 15 members as the union embraces reform and enlargement, preparing the institutions to cope with 10 new countries next year.
But squabbles continue in several areas: the plan for an elected president of the European Council to replace the present rotating six-month presidency; proposals to slim down the EU Commission to 15 voting members even though there will be 25 countries in the EU from May 2004; and plans to trim the number of policy areas in which countries are able to exercise a national veto.
Asylum and immigration policy is in a state of flux. And Europe is struggling to finalize a deal on reforming the controversial Common Agricultural Policy, which eats up nearly half of the EU budget.
Political observers will also be watching how Berlusconi handles European Commission President Romano Prodi, a fellow Italian and political opponent.
OMG, those silly Italians. Seriously what is it about their government, if its not that their corrupt, its that they've elected a porn star into the legislature or that they have mafia issues.
Have to admit thought, the guy has balls, did not back down when asked to. The guy sounds pretty scummy to me but it's worth a laugh seeing the EU meeting degenerating like this.