ROME, Oct 13: Italy's Prime Minister Silvio Berlusconi and German Chancellor Gerhard Schroeder failed to settle sharp differences over Berlin's bid for a permanent seat on the UN Security Council in more than two hours of talks here Wednesday.

After their first meeting since Rome launched a campaign to block the German bid to secure a seat in a proposed shake-up of the UN Security Council, it was eminently clear the two leaders had failed even to narrow the gap.

"The differences between Germany and Italy on reform of the UN Security Council are noted by everybody," said Schroeder, though he insisted they would not interfere with "excellent bilateral relations".

"It's certainly an important issue but none of us believe it necessary to modify our position," the Chancellor added. Italy opposes Germany's bid on the grounds that there should be a European Union seat on the Council and sees Berlin's initiative as divisive and following "national interests" at the expense of those of the EU bloc.

Berlusconi said the Italians "have not even tried to convince Germany to change its position, which is its legitimate position. -AFP