Malta is to propose that Schengen countries disregard the Swiss blacklist of 188 Libyans in an effort to persuade Libya to go back on its decision to deny Schengen passport holders entry into the north African country.
Foreign Affairs Minister Tonio Borg yesterday told The Sunday Times he would propose this measure on March 22 during a meeting of EU foreign ministers.
Dr Borg said Schengen countries that felt Switzerland had acted incorrectly should disregard the blacklist - which includes Libyan leader Muammar Gaddafi - and issue visas to Libyan citizens, whoever they may be, unless an agreement was reached in the coming days.
He hoped European countries from the group known as the 5+5 - Malta, Spain, Portugal, France and Italy, plus Algeria, Morocco, Mauritania, Tunisia and Libya - would back this initiative.
"Seeing that Libya is a part of this group, it makes sense for this initiative to be embraced by these five European countries," Dr Borg said.
His statement underlines the urgent need for a solution after a lack of progress during a meeting last Friday between Switzerland and the Spanish EU Presidency, which went to the table with a number of proposals agreed to by Libya.
The spat between Libya and Switzerland dates back to 2008 when Mr Gaddafi's son, Hannibal, was arrested in Geneva. The charges were later dropped but Libya retaliated by arresting two Swiss men on visa charges.
Then, a month ago, Switzerland hit back by effectively blacklisting Libya's entire ruling elite, barring them from travelling to the Schengen area; the 25-country, passport-free zone.
This row is affecting hundreds of Maltese who work in the north African country. A ministry spokesman said in the past week alone he had received more than 250 e-mails or telephone calls from people who are either employed in Tripoli or have business connections there.
He pointed out that between 2004 and 2008 Malta had exported €341 million worth of goods to Libya.
This issue was also raised by Labour leader Joseph Muscat yesterday during a conference on the economy and industry. He said the party had maintained its silence and tried to help through its contacts - but the time had come to speak out.
"The time has come for the government to act - if necessary unilaterally - to safeguard the national interest and the interests of so many families," he said.
Dr Muscat admitted solutions were limited, but they existed, to ensure Maltese workers and business had access to Libya without losing the competitive edge Malta enjoyed.
"We believe the government is evaluating these possibilities. We can assure the government of our backing if it makes these choices in the national interest. We should never shirk or be ashamed of defending our interests in order to safeguard our competitiveness," he added.