Schroeder's decision came after Stefano Stefani, who is an Italian state secretary responsible for tourism, said in an interview with Italian press that Germans are "stereotyped blondes with a hyper-nationalist pride."

"The (Schroeder') family ... will spend its vacation at home in Hanover," said German government spokesman Bela Anda.

Schroeder planned to spend holidays at the home of his friend and painter Bruno Bruni in central Italy beginning July 20.

According to Italian press, Schroeder told Bruni that "everything has its limits," meaning that the Italian officials went to far to provoke Germany.

Several German officials have demanded Italian Prime Minister Silvio Berlusconi to fire Stefani for his remarks in which he also depicted Germans as "noisy heavy drinkers" who always feel as the best among Europeans.

Earlier this month, Berlusconi himself caused anger in Berlin for comparing a German member of the European Parliament to a Nazi officer. But the Italian Prime Minister later expressed regret for his comment.

It is unclear how the row between Berlin and Rome will affect Italy's tourism as 10 million German tourists visit Italy each year.

Italian PM Regrets Schroeder's Holiday Cancellation

Italian Premier Silvio Berlusconi expressed regret Wednesday that German Chancellor Gerhard Schroeder has canceled his summer holiday in Italy.

"I'm sorry, for his sake," said Berlusconi when asked for a comment during a visit to the southern exclusive Amalfi coast resort of Positano.

The premier said no more on the subject.

Schroeder, who has visited Positano himself several times, was this year planning to spend three weeks in the Marche resort of Pesaro. But Schroeder canceled this plan after Italy's Production Activities Undersecretary Stefano Stefani made the offending remarks in about tourists from Germany.

German government's spokesperson Bela Anda stressed earlier Wednesday that the decision over whether or not to holiday in Italy was not linked to Stefani's resigning his post.

The news that the German leader has canceled his summer holiday in Italy became provoked consternation among the local community.

The leftwing head of Pesaro's provincial government said he was thinking of suing the government for damages while the mayor of the city, also a left winger, said the Berlusconi administration was "incapable" of protecting the country's interests.

Germans account for about 40 percent of the tourists visiting Italy each year.

(Source: Xinhua News Agency July 10, 2003)