The only way I read this article is that Franco Frattini, Italy's Foreign Minister, essentially agrees with the Israelis on the issue of the scandalous article in Aftonbladet. He seems to be saying that while governments can't stop newspapers from saying things, they certainly can condemn the worst things that get said. The Aftonbladet blood libel needs to be condemned. Moreover, he may even be saying the Swedish government agrees, and is seeking a general EU condemnation that will give them a face-saving opportunity to condemn the libel without being specific.
Looks like a reasonable vindication of the official Israeli response to me.
I had an interesting conversation the other day with some friends. None of us had voted for Netanyahu, and all of us felt he's doing a reasonable job. This is very unusual for us, as our natural condition is to revile our government, no matter who they are. Since it looks like he's going to be in office for a while yet, here's hoping he keeps on doing a reasonable job.