Libya, Italy patch up Mohammad T-shirt row

By Gavin Jones

ROME (Reuters) - Libya accepted on Friday an apology from an Italian minister whose T-shirt offended Muslims in 2006, and withdrew threats of "repercussions" against Italy over the anti-immigrant party politician's inclusion in a new government.

Roberto Calderoli of the Northern League was named this week as a member of the new administration of Silvio Berlusconi, who was installed as prime minister for a third term.

A statement from the Libyan embassy in Rome said Libya noted "with satisfaction" the "public statement of regret" by Calderoli and, after further contacts with the Italian authorities, considered that "the case is closed".

Berlusconi, facing a diplomatic clash -- and possible energy sanctions -- after Libya made clear its anger at his choice of minister, said earlier he was "confident we will be able to clarify and calm down the situation with Libyan authorities".

Calderoli quit Berlusconi's last government in 2006 after wearing a T-shirt with a Danish cartoon of the Prophet Mohammad that angered Muslims worldwide. He was blamed for rioting that broke out at Italy's consulate in the Libyan city of Benghazi.

Libya had warned of "catastrophic consequences" if Calderoli became a minister again and reacted to his swearing-in on Thursday by saying it would no longer cooperate on preventing illegal immigrants from Africa landing on Italian shores.

The Libyan government was reported to be preparing sanctions against Italy such as shelving an agreement to extend the activities of Italian energy company ENI in Libya.