Berlusconi controls a $7.8 billion media empire that includes the nation's largest private television broadcaster, Mediaset. Together with state-run RAI, he controls about 90 percent of Italy's television market, leading to charges that he has too much influence over information that can be used for political and personal gains.

Berlusconi, speaking Italian, snapped: "Mr. Schulz, I know there is a producer in Italy who is making a film on the Nazi concentration camps. I will suggest you for the role of 'kapo.' You'd be perfect."

Italy's richest man has been dogged by legal problems and accused of having conflicts of interest because of his vast media holdings.