Italy to pay Libya $5bn compensation package

ITALY: Italy agreed yesterday to pay Libya $5 billion (€2.5 billion) as compensation for its 30-year occupation of the country, which ended in 1943.

Italian prime minister Silvio Berlusconi and Libyan leader Muammar Gadafy signed a memorandum pledging a $5 billion compensation package involving construction projects, student grants and pensions for Libyan soldiers who served with the Italians during the second World War.

"It is a material and emotional recognition of the mistakes that our country has done to yours during the colonial era," Mr Berlusconi said. "This agreement opens the path to further co-operation."

In return, Italy wants Libya to crack down on the thousands of illegal migrants smuggled across the Mediterranean to Italian shores. Libya largely has not delivered on pledges over the last few years to eliminate the problem.

Rome is also keen on increasing its already long-consolidated energy ties with Tripoli. Libya is a big supplier of natural gas and oil to Italy.

Mr Gadafy received Mr Berlusconi under a big tent in Benghazi where the two leaders exchanged gifts, with Mr Berlusconi giving Mr Gadafy a silver ink stand, sculpted in the form of a lion's head.

The Libyan leader gave Mr Berlusconi a linen suit.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times