By Silvia Marchetti

    ROME, June 10 (Xinhua) -- Libyan leader Muammar Ghaddafi on Wednesday started his first historical visit to Rome. The 3-day visit is set to boost Libya-Italy bilateral relations and pave way for closer cooperation with the European Union (EU) on economic and immigration issues.

    Ghaddafi's visit to Rome is the product of 40 years of hard-spun diplomatic negotiations. It follows the signature in August 2008 of the Treaty on Friendship, Partnership and Cooperation between Italy and Libya which officially put an end to the long-lasting colonial dispute by granting material compensation to Libya and launching a strategic economic and anti-immigration partnership.

    Upon arrival, Ghaddafi met with the Italian head of state Giorgio Napolitano and Prime Minister Silvio Berlusconi.

    "A painful chapter of history is finally over," Berlusconi said when he welcomed Ghaddafi at the airport, according to local news agencies.

    Napolitano said that "this historical visit paves the way to stronger bilateral ties between Italy and Libya."

    Berlusconi and Ghaddafi signed important bilateral agreements to boost economic, scientific and technical cooperation in sea resources, develop student exchange programs and implement special fiscal measures for companies' investments.

    "Berlusconi is a man of great courage, he has taken the historic decision to apologize for Italy's colonialist damage to Libya and he is the only Western leader to have done so. This is why I am here today in Rome," Ghaddafi told reporters at a joint press conference.

    "An era has closed and a new one begins, the merit goes to premier Berlusconi. Italy is now our friend and Libya is open to all Italian companies wanting to do business," Ghaddafi added.

    Berlusconi, remembering the "suffering of the Libyan people," said the strategic partnership is the product of many years of hard work done by his predecessors. "I am very happy that there are no more contrasts between our countries," he added.

    Ghaddafi said he will push the UN General Assembly to assign a permanent seat to Italy. "Italy has defeated Fascism and deserves it more than many other countries."

    Ghaddafi added as well that he will present to the UN refugee agency a strategic document for the fight against sea piracy in Somalia.

    On Thursday Ghaddafi will give a speech at the Italian Senate and at La Sapienza state university, while he will meet on Friday with the Italian association of entrepreneurs and a delegation of 700 women.

    According to Arturo Varvelli, researcher at the Milan-based ISPI institute of international politics and author of Italy and the rise of Ghaddafi, "the Libyan leader's trip to Rome will pave way for greater Libya-EU relations, especially in the fight against illegal immigration."

    "Closer bilateral ties between Italy and Libya can support Libya's integration in the circuit of international cooperation," said Varvelli.

    "It's a great historical opportunity to consider Libya's official entry in the Mediterranean Union and accelerate the implementation of the framework agreement between Libya and the EU, launched in 2008."

    Negotiations for strategic cooperation on economy, safety, energy and illegal immigration between Libya and the EU are moving slowly. In February EU commissioner Benita Ferrero-Waldner visited Tripoli as a move to further normalization talks.

    The EU Commission has allocated 20 million euros for sea-border patrolling and strategic infrastructure building. The funds, however, have not yet been transferred to Libya.

    "With the Treaty on Friendship and Cooperation signed last August Italy has contributed in opening the door to new relations between Libya and the European Union," said Varvelli.

    Italian occupation of Libya dates back to 1911 and lasted until1970 when Ghaddafi came to power and threw the Italians out of the country, confiscating their properties. Ever since Libya has claimed material compensation for colonialism and formal apologies from the Italy.

    Italy-Libya relations reached an all time low in 1986, when Libya launched a missile which fell into Sicilian waters in reprisal for the U.S. bombing of Tripoli and Benghazi.

    However, no matter the colonial contrasts Italy and Libya have always had a privileged relationship. Italy is Libya's first commercial partner and Libya is Italy's second oil-import country.

    Many Italian firms operate in Libya and Libyan investment in Italy is rising. The Libyan Central Bank and the sovereign Libyan Investment Authority (LIA) have a stake in Unicredit Bank and could soon acquire parts of Italy's largest utility ENI and telephone operator Telecom Italia.

    The Treaty on Friendship, Partnership and Cooperation launched a strategic partnership between Libya and Italy in economy, culture, science, industry, energy, defense, non-proliferation and disarmament, and in the fight against terrorism and illegal immigration. It entered into force on March 2 with Berlusconi's visit to Sirte and his formal apologies for colonialism.

    According to the treaty, Italy committed to building basic infrastructure for a total of 5 billion U.S. dollars. The annual expenditure will amount to 250 million dollars over 20 years and the work will be carried out by major Italian companies operating in the field of hydrocarbon research, development and constructions. Thus, no funds will be transferred to Libya but managed directly from Italy.

    "Libya chooses which infrastructures to build, while Italy which firms will carry out the work," explained Varvelli.

    The second pillar of the treaty is cooperation in the field of illegal immigration, which entered into force in May. The Italian government allocated funds for joint patrolling of Libyan sea borders on boats provided by Italy and for technological device controls of the Southern Libyan frontier.

    In addition, all Libyan land borders are to be monitored by a satellite detection system jointly financed by Italy and the European Union.

    The Italian government has made the fight against illegal immigration one of its top priorities and has introduced some controversial measures such as the deportation of migrants intercepted in international waters.

    The treaty between Italy and Libya, however, left open the thorny question of the 20,000 Italian people expelled from Libya in 1970 and demanding compensation. So far, they have been compensated only by the Italian government.

    In Rome Muammar Ghaddafi loyal to his Arab traditions, will receive his guests in a desert tent set-up in one of the capital's main parks.

    Ghaddafi is to return to Italy in July to attend the G8 summit of L'Aquila as chairman of the African Union.