The regulatory framework existing in the oil/gas sector remains rather opaque and was in the past often surrounded by accusations of corruption. Trade in non-hydrocarbon related goods is limited but offers interesting growth potential.
Some EU member states have outstanding claims for goods or services delivered under the old regime. The EU hopes to see those claims addressed by the Libyan authorities.
The investment rules in Libya do no provide for 100% ownership by foreign companies. There is considerable unease about these provisions with EUMS companies.
EU Cooperation
Over the last year the EU delivered on its commitment to support the Libyan people in their transition towards democracy. In a first phase, the EU launched immediate actions to address urgent needs and to support the stabilisation priorities of the authorities. This was followed by a comprehensive package of projects with a longer-term perspective. The EU's total programme in Libya now stands at € 79 million focussing on public administration, security, democratic transition, civil society, health, vocational training and education. This is in addition to €80.5 million disbursed to provide humanitarian assistance during the conflict phase in 2011.
(1) Security. This is clearly a key issue, affecting the lives of Libyan citizens and impacting on economic development. The main EU programmes in this sector include:
i. Security Sector Reform and Rule of Law programme (€ 10 million).
ii. Support for "Capacity building for crisis response and crime investigations" (€4.3 million).
iii. Supporting the Libyan authorities on physical security and stockpile management (PSSM) of conventional weapons and ammunition (€ 5 million).
iv. Clearance of unexploded ordnances to create a safe and secure environment (€ 5 million).
(2) Economic recovery will be promoted by better Technical Vocational Education and Training (TVET). A TVET programme (€ 6.5 million) will improve the quality of the training on offer as well as their relevance to the demands of the labour market. In addition, reintegration of unemployed could help support integration of former fighters.
(3) Health, the EU has always considered the health sector in Libya as a priority for future assistance. Additional EU assistance in this area (€ 8.5 million programme) will address both immediate service delivery and quality improvement of the sector.
(4) Public Administration and Democratic transition: support to the National General Congress and to the drafting of the Constitution.
(5) Migration: The EU is implementing five programmes, bilateral and regional, which started pre-revolution for a total of € 19 million to support the government in dealing with migration flows and assistance to the migrants (e.g. voluntary repatriation). An additional programme (€10 million) started end of 2011 to stabilise at-risk communities and enhance migration management.