Foreign Affairs Minister Tonio Borg was yesterday optimistic that the issue between Switzerland and Libya over visas would be resolved, possibly in the coming days.
His remarks followed news that the two Swiss businessmen wanted by Libya, who had been sheltering in their country's embassy in Tripoli, had left the complex. One of them has left the country.
"This is good news and means that progress in the negotiations currently being spearheaded by Germany, on behalf of the EU, are starting to reap results," Dr Borg told The Times after emerging from discussions with his counterparts during a council meeting in Brussels.
The issue was raised yesterday on a request by Malta. During the meeting Dr Borg appealed for an agreement to be reached on this bilateral issue between Switzerland and Libya, particularly as it had escalated and included citizens of countries like Malta that were being prevented from entering Libya.
"This cannot go on and we think Switzerland should not have used the Schengen mechanism as a political tool," Dr Borg told EU ministers.
"We think the time has come for the EU to look at the Schengen mechanism so that it will not be abused. This is in the interest of all the member states."
Italian Foreign Minister Franco Frattini, who took the floor following Dr Borg's intervention, reiterated Malta's arguments and asked the Spanish EU Presidency to use its diplomatic channels to try to resolve the issue as quickly as possible.
Following the meeting, Dr Borg said although the situation regarding Maltese citizens remained the same, as they were still not being allowed into Libya, pressure on the two sides was growing and he was optimistic the row would soon be defused.
Last week Libya decided not to recognise any Schengen area passengers following Switzerland's decision to blacklist some 180 Libyan officials, preventing them from having a Schengen visa. They include Libya's leader Muammar Gaddafi and members of his family.
Relations between Switzerland and Libya have soured since July 2008, when police in Geneva questioned Mr Gaddafi's son, Hannibal, and his wife following a complaint they had abused domestic staff at their hotel.
Soon afterwards, Libya prevented two Swiss businessmen from leaving the country and subsequently tried them on visa violations.
The two men, who were sheltering in the Swiss embassy in Tripoli, left yesterday after Libyan police surrounded the building. Libya had threatened to storm the embassy if the two men did not surrender by noon.
One of the businessmen was taken to prison to serve his four-month sentence while the other Swiss citizen, who was acquitted of the charges, left Libya.
According to EU diplomats this development should pave the way for a settlement of the dispute.