Rome ? Germany declared its diplomatic dispute with Italy over Thursday, saying Prime Minister Silvio Berlusconi had expressed “regret” for likening a German lawmaker to a Nazi prison guard. Berlusconi said he regretted merely that his comments had been misunderstood.

The difference between the two underscored the sensitivity of the incident, which marred the start of Italy’s European Union presidency and revived questions about the flamboyant Berlusconi’s suitability for the job and his vast control over the Italian media.

German Chancellor Gerhard Schroeder had demanded an official apology from Berlusconi for having told a German parliamentarian that he would be “perfect” to play the role of a Nazi concentration camp guard in a movie.

Berlusconi made the comment Wednesday while speaking to the European Parliament.