17 April 2012 Last updated at 05:17 ET
Breivik also told the court that he would do it all again.
Although he admits the bombing and attack on a youth camp, he has pleaded not guilty to terror and mass murder.
"These acts are based on goodness, not evil," he said, adding that he had toned down his rhetoric out of concern for the victims.
Comments limited Earlier Breivik's lawyers warned that many Norwegians would find his comments upsetting. Geir Lippestad also said that he understood concerns by victims' families that Breivik would use his trial as a pulpit.
His testimony or those of his witnesses will not be broadcast.
The BBC's Matthew Price in the courtroom says that Breivik's evidence will be crucial in working out if he is criminally insane and psychiatrists in court have been observing him closely.
One of the questions at the very heart of this trial, which is expected to last for 10 weeks, is Breivik's mental state. Breivik has already said that he does not recognise the court.
Our correspondent says his comments about Norway fit in with his belief that liberal ideals are ruining Norway and are the reason why he attacked the governing Labour party summer camp on Utoeya island and government offices.
"I am not scared by the prospect of being in prison all my life. I was born in a prison where I could not express my beliefs," he told the court, adding: "This prison is called Norway".
Judge substituted
As the day began, the court was briefly adjourned and one of three lay judges dismissed for saying last July that Breivik should face the death penalty.
A lay judge is an ordinary member of the public who forms part of the judgement panel. The one dismissed will be replaced by a substitute who was observing proceedings yesterday.
Breivik's lawyer later said that his client appeared to have cried over feelings that his attacks were "cruel but necessary... to save Europe from an ongoing war". He added that Breivik "has a right to explain himself".
Breivik detonated a bomb in a van parked outside government offices in Oslo on 22 July, killing eight people.
He then travelled to Utoeya where, dressed as a police officer, he shot dead a further 69 people who were attending a youth camp run by the governing Labour party.
The 33-year-old Norwegian was found insane in one examination, while a second assessment made public last week found him mentally competent.
If the court decides he is criminally insane, he will be committed to psychiatric care; if he is judged to be mentally stable, he will be jailed if found guilty.
If jailed, he faces a sentence of 21 years which could be extended to keep him behind bars for the rest of his life.
The courtroom has been specially built for the trial to accommodate more than 200 people. Glass partitions have been put up to separate the victims and their families from Breivik.
Breivik takes stand in Norway massacre trial
The man accused of killing 77 people in bomb and gun attacks in Norway last July is defending his actions as he takes the stand at his trial in Oslo.
"I have carried out the most spectacular and sophisticated attack on Europe since World War II," Anders Behring Breivik told the court.Breivik also told the court that he would do it all again.
Although he admits the bombing and attack on a youth camp, he has pleaded not guilty to terror and mass murder.
"These acts are based on goodness, not evil," he said, adding that he had toned down his rhetoric out of concern for the victims.
Comments limited Earlier Breivik's lawyers warned that many Norwegians would find his comments upsetting. Geir Lippestad also said that he understood concerns by victims' families that Breivik would use his trial as a pulpit.
His testimony or those of his witnesses will not be broadcast.
The BBC's Matthew Price in the courtroom says that Breivik's evidence will be crucial in working out if he is criminally insane and psychiatrists in court have been observing him closely.
One of the questions at the very heart of this trial, which is expected to last for 10 weeks, is Breivik's mental state. Breivik has already said that he does not recognise the court.
Continue reading the main story
“Start Quote
End QuoteWe are being given a lengthy explanation of Breivik's world view. He is calm and clear. ”
Despite repeated interruptions from the judge to cut down his speech, Breivik insisted that he had more to say, although he agreed to limit his comments to Norway.
Breivik's comments have ranged from his criticisms of liberalism and Marxism to claims that he "supports the model in South Korea and Japan". Our correspondent says his comments about Norway fit in with his belief that liberal ideals are ruining Norway and are the reason why he attacked the governing Labour party summer camp on Utoeya island and government offices.
"I am not scared by the prospect of being in prison all my life. I was born in a prison where I could not express my beliefs," he told the court, adding: "This prison is called Norway".
Judge substituted
As the day began, the court was briefly adjourned and one of three lay judges dismissed for saying last July that Breivik should face the death penalty.
A lay judge is an ordinary member of the public who forms part of the judgement panel. The one dismissed will be replaced by a substitute who was observing proceedings yesterday.
Continue reading the main story
Breivik's Norway attacks
- 8 people killed and 209 injured by bomb in Oslo
- 69 people killed on Utoeya island, of them 34 aged between 14 and 17
- 33 injured on Utoeya
- Nearly 900 people affected by attacks
On Monday, prosecutors played harrowing recordings of the events and described the fate of each victim in detail.
Throughout the evidence, Breivik remained emotionless, although he broke down weeping when the court played a 12-minute anti-Islam video which he had posted online on the day of the carnage.Breivik's lawyer later said that his client appeared to have cried over feelings that his attacks were "cruel but necessary... to save Europe from an ongoing war". He added that Breivik "has a right to explain himself".
Breivik detonated a bomb in a van parked outside government offices in Oslo on 22 July, killing eight people.
He then travelled to Utoeya where, dressed as a police officer, he shot dead a further 69 people who were attending a youth camp run by the governing Labour party.
The 33-year-old Norwegian was found insane in one examination, while a second assessment made public last week found him mentally competent.
If the court decides he is criminally insane, he will be committed to psychiatric care; if he is judged to be mentally stable, he will be jailed if found guilty.
If jailed, he faces a sentence of 21 years which could be extended to keep him behind bars for the rest of his life.
The courtroom has been specially built for the trial to accommodate more than 200 people. Glass partitions have been put up to separate the victims and their families from Breivik.
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