The proposal came amid amid fears of a resurgence of anti-Semitism linked to Israeli actions in the Gaza Strip, where Israeli troops and Hamas forces are battling, the Times of London said.

It was seen by some as reminiscent of racial laws adopted 70 years ago during World War II by the Fascist dictatorship of Benito Mussolini.

The proposal was put forth by Giancarlo Desiderati, leader of the Flaica-Uniti-Cub union, which represents 8,000 shop assistants in Rome. He said he was aware of the comparsion but added, " We cannot pass over in silence what is happening in Gaza."

He said his union had already urged its members to boycott Israeli products, and boycotting Jewish-owned or Jewish-run stores was a logical next step.