Tripoli has dropped a ban on visas to Europeans living in the Schengen zone, after the EU presidency announced a reciprocal move for Libyan travellers, according to press reports late last night.
The decision, if confirmed, brings to an end a dispute lasting almost a month and a half that affected hundreds of Maltese workers and businessmen who were not allowed access to Libya.
The Libyan ban had been imposed as retaliation to a Schengen area blacklist drawn up by Switzerland against Libyan officials.
Spain, which holds the rotating presidency of the EU, said yesterday it "deplores" problems caused for Libyans on the Schengen-area blacklist imposed by Switzerland, which caused a diplomatic rift with the energy-rich North African country.
"This measure (the blacklist) was taken by a member of Schengen, not by the EU, which played no role in this. We are sorry and deplore what happened and the problems caused to Libyan citizens," it said.
Spanish Foreign Minister Miguel Angel Moratinos, a former EU Middle East envoy, flew to Libya yesterday in a fresh bid to end the spat between Libya and Switzerland and urge that Tripoli free a Swiss national, Max Goeldi.
Before the news broke out last night, Foreign Minister Tonio Borg yesterday said Malta never took sides in the dispute between Libya and Switzerland but always stressed that other European countries should not have been dragged into it. His comments came as Swiss President Doris Leuthard said she did not appreciate pressure from Malta and Italy to lift visa restrictions to Libyans.
The Swiss president said the row had proven to be a "test" of solidarity between Schengen zone members and every member was entitled to impose such restrictions.
Switzerland issued a blacklist banning 188 prominent Libyans, including leader Muammar Gaddafi, from entering the 25-state Schengen visa zone in the wake of a diplomatic row that began in July 2008 with the arrest of Hannibal Gaddafi, the leader's son, in Geneva.
Last month Malta and Italy asked Switzerland "to accelerate negotiations with Libya" and to eliminate the blacklist, with the two countries later threatening to stop honouring the blacklist after April 5.
Last Wednesday, Switzerland offered to lift the blacklist to unblock the stalemate with Libya, but Tripoli did not react until last night.
Asked to respond to Ms Leuthard's criticism Dr Borg said: "The Swiss did what they thought was in the national interest and we did what we thought was in our national interest. We never condemned either country. We just felt the EU should not have been involved in a way that placed its relations with Libya at risk."
When Switzerland had issued the blacklist, Tripoli denied entry visas to citizens of the Schengen area drawing the EU, of which Switzerland is not a member, into negotiations between Tripoli and Bern.
The Schengen borderless travel zone groups 22 European Union nations plus Switzerland, Norway and Iceland.