"No, I have never had any problems with Angela Merkel. In 20 years of politics, I have never insulted anyone and this accusation was made up by someone who wanted to turn Angela against me," he said.
"I was not an easy person to deal with and I was quite tough. I had the courage to oppose some of the proposals made by Merkel and [French President Nicolas] Sarkozy."
Berlusconi may have thought he was being treated like an eminent statesman when the interview began. First Paxman asked him to pontificate about whether there would ever be a United States of Europe and then asked about the future of the euro. But then, in an abrupt change of tone, came the "lard-arse" line. Those bunga bunga parties were saved until last.
Berlusconi appeared more sanguine this time. "The lies that were invented about me have given me a very bad reputation abroad. Italians know very well that none of these facts are true," he insisted. He complained they were all part of politically motivated claims that led to him being involved in 57 trials and 2700 court hearings during 20 years in politics.
"The bunga bunga accusations were the most amazing things - ridiculous. They manipulated reality. Luckily I am a strong person and I was able to take it."