Italy backs Netanyahu's peace plans

ROME— Israeli Prime Minister Benjamin Netanyahu got a warm and supportive welcome Tuesday from Italian Premier Silvio Berlusconi, while postponing a potentially less comfortable meeting with President Barack Obama's Mideast envoy.

At a joint news conference after talks lasting about two hours, Berlusconi endorsed Netanyahu's plan for a future demilitarized Palestinian state that recognizes Israel as a "Jewish state." That means that Palestinians must give up any notion of refugees who left what is now Israel — or their millions of descendants — resettling in their former homes.

And although the U.S. says emphatically that Israel must call an immediate halt to all forms of Jewish settlement activity in the West Bank, Berlusconi was more gentle, speaking only of the need for Israel "to send signals" on stopping settlement.

"It was a very warm welcome," an upbeat Netanyahu briefed Israel-based journalists traveling with him after the Berlusconi meeting. "It would be hard to find a better friend."

Both men also discussed Israel's concerns about what many Western countries say are Iran's nuclear arms ambitions.

Italy is perhaps Israel's greatest ally in Europe, but at the same time is Iran's No. 1 European trading partner, accounting for about 26 percent of total import-export trade between EU countries and Tehran.

Last year alone, Italian imports from Iran amounted to euro4.1 billion ($5.73 billion) and Italian exports amounted to euro1.8 billion, according to the Italy-Iranian Chamber of Commerce and Industry.

Standing next to Netanyahu, Berlusconi said Italy's economic ties to Tehran had always had the blessing of Israel and the U.S., and would continue as long as Washington approved.

Both leaders said they discussed at length the situation in Iran following the disputed June 12 election that returned hard-line President Mahmoud Ahmadinejad to power. Opposition leader Mir Hossein Mousavi says he was the true winner, and his supporters have protested for days to demand a new election.

Netanyahu said the violent crackdown on the protesters "shows the true nature of this regime" that is making governments everywhere reassess their relations with Tehran.

"I believe that the courage shown by the people of Iran in facing bullets in the streets for the sake of freedom is something that deserves the salute of free men and women everywhere," he said.

Making his first European tour since taking office, Netanyahu flies to Paris on Wednesday for talks with President Nicolas Sarkozy who says he is a firm supporter of Israel but nevertheless has also called for "an immediate and complete halt to settlement."

In addition, he insists that Israel must cede sovereignty over parts of Jerusalem claimed by the Palestinians, something that is anathema to Netanyahu and his right-wing political partners at home.

While in the French capital Netanyahu had been due to also meet the U.S. Middle East peace envoy, former Sen. George Mitchell, who analysts and Israeli officials had expected to press Israel on the settlement issue.

But Netanyahu aides accompanying him in Rome said Defense Minister Ehud Barak would instead travel to Washington next week to hold talks with Mitchell.

A statement read out to reporters said the Netanyahu-Mitchell meeting was being postponed until after the talks with Barak in order to "clarify issues."

Netanyahu says he will not allow construction of new settlements nor allow existing enclaves to expand beyond their current boundaries but he is not prepared to stop building within existing communities.

He says that the ultimate fate of settlements should be dealt with negotiations for a final, lasting peace agreement with the Palestinians and that in the meantime a compromise with the Americans can be found.

"Can we reach agreement on the settlement issue? Yes, if there is a will," he told reporters.