Libya crisis left no impact on economy yet – Prime Minister

The economy was still steaming ahead despite the Libya crisis but the Prime Minister yesterday urged caution as the situation was very fluid and unstable.

Maltese companies and workers in Libya have been hit hard by the unrest but industrial indicators are showing positive results for the rest of the economy.

“The government is keeping an eye on industrial indicators such as the importation levels of raw materials used by factories and these are showing the economy is still moving forward,” Lawrence Gonzi said as he visited the German factory Seifert MTM Systems in Ħal Far.

The government was closely monitoring the economic impact of the crisis in Libya and insisted the country had to project itself as a stable destination for tourists and investors.

He was confident Malta would be able to overcome this crisis in the same way it managed the international economic recession in 2009.

“I urge prudence though because the situation is still evolving,” he said.

German Ambassador Bernd Braun defended his government’s position to abstain on the UN Security Council resolution imposing a no-fly zone on Libya. “We felt it was a big risk to go and engage in Libya’s civil unrest,” Mr Braun said.

He refused claims Germany abandoned fellow member states France and the UK, the prime movers behind UN resolution 1973.

“Chancellor Angela Merkel underlined that Germany supports the military action in Libya... like any other industrialised nation we have interests in the region but we felt it was better for the future of Libya if the situation was resolved by Libyans rather than by forces outside the country,” Mr Braun said.

Dr Gonzi and Mr Braun visited the German company, which celebrated its 20th anniversary in Malta. The company produces high-end cooling systems for industrial use and employs more than 200 people.