Italy, which did more than any other country to legitimise Libya and its mercurial leader, is going through a foreign policy nightmare as civil strife in its former colony threatens its energy supplies, international image and the stability of some of its blue chip companies. Italy imports about 80 per cent of its energy needs. About 32 per cent of Libya's oil output goes to Italy - making up about 25 per cent of Italy's imports - and about 12 per cent of Italy's gas comes from Libya.