Germany is ready to support a United Nations peace keeping mission in Libya, Chancellor Angela Merkel said today after a meeting with Prime Minister Joseph Muscat.

Germany is focused on the Ukraine crisis, but Merkel admitted that there is a need for more attention to be given to Mediterranean issues.

In a joint press briefing after talks in Berlin, Dr Muscat said that stability in Libya were crucial for European security.

He said Libya needed support now when the UN was overseeing peace talks in Geneva between the rival factions.

The EU cannot take action and be caught by surprise only when Libya becomes a failed State. Malta's role is to nudge the important players into putting Libya on the agenda and we believe Germany is an important player. Libya is not the only issue but neither is Ukraine the only issue.

He identified three issues that made Libya a concern for Europe: "Libya is an important supplier of crude oil in the region; it is a transit point for illegal immigration and efforts must be made to ensure it becomes a safe port of call; and instability can lead to terrorist organisations taking root."

Dr Muscat said Malta was against debt relief for Greece but in favour of flexibility that would allow the country some breathing space such as extending the period for debt maturity.

“We are against a debt haircut,” Dr Muscat said of Greece’s new government’s demands to halve its €315 billion debt.

Chancellor Merkel did not commit herself on Greece, insisting a meeting between the finance ministers of Germany and Greece was expected Thursday.

"We have to wait and see what the Greek government is asking of us. It is for them to tell us what they want."

The Malta Independent was not invited to accompany the Prime Minister in Berlin.