The European Commission proposed Wednesday to open negotiations on boosting relations with Libya, with the aim of completing a first ever framework for ties by the end of the year.
"This is a historic decision. Libya is an important player in the Mediterranean region and in Africa, and so far has no framework for relations with the European Union," said External Relations Commissioner Benita Ferrero-Waldner.
The commission said it would begin negotiating an agreement covering political, social, economic, commercial and cultural relations with Libya once it has received the green light from the bloc's 27 member nations.
"I am confident that the agreement will create solid and long lasting relations between Libya and the E.U.," she said.
The European Union resumed ties with Libya last year after Tripoli released six foreign medics accused of spreading the virus that causes AIDS to children. To help secure their release, Ferrero-Waldner signed a memorandum of understanding with Tripoli offering to work towards improving relations.
However E.U.-Libya relations remain slight despite the fact European sanctions imposed over the 1988 Lockerbie bombing were lifted in 2004.
Libya is considered a potentially strategic partner for Europe. The E.U. is seeking to diversify its sources of oil and gas, and better control illegal immigrants from Africa who regularly pass through Libya on their way to Europe by sea, a particular problem for Italy and Malta.
The negotiations are aimed in part at helping Libya advance with economic and social reforms, and develop trade and economic relations, notably by establishing a free trade agreement.
"An ambitious free trade agreement would intensify cooperation between the E.U. and Libya on trade and economic issues and would further strengthen and deepen our relationship," said E.U. Trade Commissioner Peter Mandelson. "Together with our support for Libya's bid to join the World Trade Organization, these negotiations represent a vital first push forward in Libya's reintegration into the world trading system."
Another aim of the commission, the E.U.'s executive body, is to establish ties and dialogue on issues like security, development and human rights.