David Darmanin Maltese companies with Libyan interests are adopting a wait-and-see approach to the diplomatic quandaries EU-Shengen countries are currently facing with Libya.
Further to a diplomatic incident between the socialist dictatorship led by Colonel Muammar Gaddafi and the Swiss government, citizens of the 20 EU countries that have signed the Schengen agreement (including Malta) are being denied the issue of an entry visa to the North African country.
Libya has ordered the directive as an eye-for-eye/tooth-for-tooth retaliation to the Swiss government’s decision to order a ban on the issue of visas to a number of Libyan VIPs wishing to enter a Schengen country.
Since most European companies based in the Libyan cities of Tripoli and Benghazi rely on Western expertise and management, the government directive has stalled or postponed the progress of most expatriate enterprises based there.
Maltese company directors speaking to MaltaToday said that although the situation is bound to improve, it is hardly likely that the Libyan government will retract from its position unless Switzerland lifts the directive first.
“If Switzerland decided to wave a red flag at a bull, you cannot blame the bull for charging,” a Maltese exporter to Libya told MaltaToday. “It is up to the EU to resolve the situation now. The Swiss government must realise that it had no right to involve countries with several business ties with Libya – like Italy, France, Austria, Spain and Malta – in the middle of a diplomatic dispute. The reality is that Libya can still make it without the help of Schengen countries nowadays. It is true that the Libyan government has just signed a multi-billion agreement with the Italian government for large scale investments in sub-Saharan countries, but it is quite evident that the Libyan government prefers losing millions of dollars than losing face.”
Observers claim that there is more than meets the eye in the clash between the Libyan and Swiss governments.
“The progressive stances of former Prime Minister Shukri Ganem and Seif al-Islam (one of Gaddafi’s sons) are causing unrest within government, which is now divided on key issues,” an analyst said. “Seif put on hold a leading government post he was offered by his father, saying that he will not take up the position unless he is elected to it. The fact of the matter is that what goes on within the Libyan government is not any other country’s business – but it is a fact that some are trying to turn the Libyan situation around to favour their interests.”
Alberta Fire and Security director Liz Barbaro Sant was one of the Maltese persons held at Tripoli airport as she tried entering Tripoli last week.
“Certainly, the situation does not help,” she said. “We need to go there to hold meetings so we can carry on expanding our business there. It’s not a very nice situation at the moment.”
Barbaro Sant however believes that the situation is temporary, and will therefore not have a determining effect on her operation in Tripoli.
“We employ 200 employees here in Malta,” she explained. “We have grown to a level where we rely on large-scale projects, and with the economy as it stands right now – there aren’t sufficient projects for us in Malta –foreign business is an absolute must. True that we have diversified in Qatar, but Libya remains a very important market for us. But we are seeing the situation as lasting only a few weeks – and although we would like to carry on our work there, a temporary situation for us will not make that much difference. It’s not like we’re closing a shop for two weeks …we only work on large-scale projects.”
There seems to be very little Malta can do about the situation, but a Maltese company director believes that we may still have a role to play.
“The Libyan government seems to look upon ministers Carm Mifsud Bonnici and Tonio Borg favourably, but foreign relations are not as close as they used to be when Mintoff was Prime Minister,” the company director said. “In fact, we have not had a Libyan ambassador in Malta for some time now. What we are saying us that Libya will not make an exception for Malta – gone are those days. There is something we can do though. Although the Italians, like the Maltese government, have already come out condemning the actions of the Swiss – it is a reality that Italy can do very little to pressure Switzerland because the two countries have very close ties. The Maltese government is freer to talk.”
ddarmanin@mediatoday.com.mt
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