Germany defends Libya stance, but EU toughens sanctions

BRUSSELS (Reuters) - Germany defended its decision not to back Western-led air strikes against Muammar Gaddafi, but joined other European Union countries on Monday in tightening sanctions against the Libyan government.

Berlin broke ranks with the United States, France and Britain last week, joining China, Russia, India and Brazil in abstaining on United Nations vote authorizing the use of force to enforce a no-fly zone over Libya and protect civilians.

Arriving at an EU foreign ministers' meeting, Germany's Guido Westerwelle said Arab League criticism of the air strikes had vindicated Germany's reluctance to back the action.

"We calculated the risk. If we see that three days after this intervention began, the Arab League already criticizes (it), I think we had good reasons," Westerwelle told reporters.

Berlin had long said it did not believe a no-fly zone or air strikes would be successful in driving Gaddafi out or protecting Libyan civilians.

On Sunday, the Arab League said it was concerned about the French- and British-led bombing of targets in Libya, saying it could lead to civilian casualties. But the League's secretary general, Amr Moussa, clarified on Monday that he still respected the U.N. resolution authorizing military action.

Westerwelle stressed Germany strongly supported EU efforts to oust Gaddafi through economic and financial sanctions, saying that should be the focus of efforts to end his 41-year-old rule.

BROADER SANCTIONS

The EU expanded sanctions against Libya on Monday, adding 11 individuals and 9 entities to its banned list, although the targets were not specified. Gaddafi and 25 close associates are already on the list, as is the Libyan Investment Authority. The National Oil Company is expected to be added in the coming days.

EU governments also agreed to freeze the assets of former Egyptian President Hosni Mubarak and 18 associates.

Westerwelle rejected suggestions that Germany's stance on Libya had effectively aligned the EU's leading economic power with Gaddafi rather than with its NATO and European allies.

"This does not mean that we are neutral, it does not mean that we have any sympathy with Colonel Gaddafi, but it means that we see the risks," he said.

With France and Britain leading the military campaign, EU ministers discussed how the bloc could bolster humanitarian aid to an estimated 300,000 people who have been uprooted in three months of unrest across Libya, Tunisia and Egypt.

"We are looking at what more we can do in terms of economic sanctions, what more we can do for planning. The most obvious is humanitarian support," EU foreign policy chief Catherine Ashton said.

Ashton is expected to propose how EU governments can use naval forces to support humanitarian efforts such as evacuating refugees, allowing for talks on the subject at a summit of EU leaders on Thursday and Friday.

"This should be (done) in close coordination ... with the UN, NATO and others," foreign ministers said in a statement.

The EU has allocated 30 million euros ($42.52 million) for humanitarian aid for victims of unrest in North Africa, mainly refugees. France has also proposed creating humanitarian corridors to bring aid into Libya, especially around Benghazi, the rebel-held city in the east of the country.

(Editing by Paul Taylor)