Libyan leader Muammar Gaddafi's call for a holy war against Switzerland "has to be taken into context" but it cannot be ignored, Home Affairs Minister Carmelo Mifsud Bonnici warned yesterday.
It would be a mistake if the EU ignored Col Gaddafi's statement because the consequences could be "serious", he said.
Libya's declaration was condemned by the United Nations, which described it as "inadmissible" in diplomatic relations.
Col Gaddafi declared a jihad or holy war against Switzerland on Thursday citing the Swiss referendum banning the construction of minarets as the reason for his call. The referendum was held in November with almost 58 per cent agreeing with the ban.
Speaking to The Times from Brussels, where he was attending a meeting of EU home affairs ministers, Dr Mifsud Bonnici said it was only natural that Col Gaddafi's declaration would complicate things further between Libya and Switzerland.
"Europe cannot stand by as if nothing is happening because there may be implications on the flow of illegal immigrants towards Europe if Libya decides to stop its sea patrols," Dr Mifsud Bonnici said.
He reiterated Malta's stand that Switzerland abused the Schengen rules when it blacklisted some 180 Libyan nationals effectively preventing them from entering all Schengen countries.
"The Swiss have set a dangerous precedent by using Schengen rules as a political tool. It defeats the scope of Schengen," he said, insisting the blacklist had to be removed.
Dr Mifsud Bonnici said it was good that Spain held the EU presidency because it understood the situation better than most European countries.
"Over the past few days, things have moved forward but, at the end of the day, it is the Libyans and the Swiss who have to sort out the problems between them. We are keeping our eyes on the situation," he said.
Malta has continued issuing visas to Libyan nationals adopting a "business as usual" attitude despite Tripoli's decision to block all travellers from Schengen area countries, including those with a residence and work permit, a Foreign Ministry source said.
"The dispute is between Libya and Switzerland. Malta will not stop issuing visas to Libyans because it would only complicate matters," the source added.
Foreign Minister Tonio Borg yesterday spoke to his Italian counterpart Franco Frattini on possible ways to get other EU countries to put pressure on Switzerland to lift its blacklist of Libyan nationals.
The Italian Ambassador to Malta, Paolo Andrea Trabalza said it was in nobody's interest to turn up the heat in the dispute.
"We are not happy at all with the situation. It is a bilateral dispute that has involved us all because Switzerland is part of Schengen. The positive tone adopted in the Rome, Madrid and Berlin talks should continue because it is in nobody's interest to turn up the heat," Mr Trabalza said.
He expected Libya to pardon the Swiss businessman under arrest in Tripoli and Switzerland to lift its visa blacklist.