Gonzi speaks of 'concern' at unrest in Syria, calls for renewal of Mid-East peace talks

European and North African leaders have started meeting in Malta with the intent to strengthen cooperation within the Mediterranean region following last year's tumultuous events which saw the overthrowing of the regimes is Libya and Tunisia.

The Western Mediterranean leaders are also expected to deliver a strong statement urging a change in the regime in Syria. Also on the table are security issues and irregular immigration.

Prime Minister Lawrence Gonzi who is hosting the 5 plus 5 dialogue meeting has this morning welcomed French President Francois Hollande, European Commission President Jose Manuel Durrao Barroso, Italian premier Mario Monti, Libyan President of the Congress Mohamed el-Magarief and Portuguese Prime Minister Pedro Passos Coelho among the leaders of the ten countries participating in the summit.

The summit brings together leaders from France, Italy, Malta, Portugal and Spain along with those from Algeria, Libya, Mauritania, Morocco and Tunisia.

Speaking during a working lunch he hosted at Castille, Prime Minister Lawrence Gonzi spoke about what he described as the leaders "collective concern" at the unrest in Syria, and has also called for more active engagement to renew the Middle East Peace Process.

The meeting is expected to conclude with all 10 leaders calling for a change in the regime in Damascus.

Earlier, when addressing the opening ceremony of the 5 5 meeting at Castille, Prime Minister Lawrence Gonzi stressed that the democratisation process and transition in countries involved in the Arab spring last year, will be long but long-term interests should never be forgotten.

He said that the Arab spring took crowds of people to the streets of Benghazi, Tripoli, Misurata, Tunis and Cairo, who fought and lost their lives for the common good.

These people fought to have for a better future, aspire for democracy and respect for fundamental human rights. "Their courage sent a message to the whole of the region," he said.

Italian Prime Minister Mario Monti said dialogue had proven to be effective and led to cooperation in many fields including home affairs, environment, transport. But it was now time to extend it to other areas, such as education and youth.

The Italian technocrat said that inspiration had to be taken from Malta's rich and eventful history.

The meeting in Malta is attracting a lot of international media attention given that later today the leaders of the France, Italy, Spain and Portugal will hold bilateral talks focusing on the eurozone crisis.

Jose Manuel Barroso, the European Commission President and Stefan Fule, the EU commissioner for Enlargement and Neighbourhood Policy are also attending the meeting.

Formal talks between the leaders are being held at Verdala Palace this afternoon and tomorrow.

Meanwhile, North African leaders attending the Malta meeting, sought to reassure Europe that the upheaval in their countries would ultimately generate more stability and investment opportunities.

Transitions in North Africa "are not a threat for Europe," Tunisian President Moncef Marzouki said in a speech at the opening ceremony at Castille, who came to power last year after long-time ruler Zine El Abidine Ben Ali fled and the country held its first democratic vote.

"Don't be afraid of Salafi Islamic groups," Marzouki said following a wave of anti-Western protests across the Muslim world over a US video offensive to Islam and satirical cartoons about the Prophet Mohammed published in France.

"Non-democratic Islamic systems would not be accepted by people. We want Islamic democracy, not autocracy," said Marzouki, who has come under criticism in Tunisia for not doing enough to keep radical Islamist movements in check.

Marzouki also said there were "lots of opportunities" for European investment, adding that the region was "in bad need" of infrastructure.

He said Arab Spring states were "paying a heavy price" for democracy -- a reference to the plunge in foreign investment and public finances woes.

"Europe is our destiny," said Marzouki, adding that "We have to rebuild the Maghreb."

Marzouki said that Tunisia was planning to host a summit of the regional Arab Maghreb Union by the end of the year.

On immigration, Marzouki said Europe should be "patient and understanding in this critical period of transition" over the flow of tens of thousands of undocumented migrants from North Africa to Europe since the Arab Spring.

The summit will allow the West to show its determination "to maintain an ambitious Mediterranean cooperation in spite of economic difficulties and the eurozone crisis," a spokesman from the French president's office said earlier.

Paris also wants to declare "its renewed confidence in the political process on the south shore of the Mediterranean and Maghreb in particular following the Arab Spring", and "create productive, confident and varied ties" in the region.

Marzouki meets Maltese investors

Tunisian President Moncef Marzouki has met Maltese investors as well as members of the Tunisian-Maltese Business Council on the margins of the Malta 5 5 summit.

"The meeting offered an opportunity to Tunisian and Maltese experts to exchange views on issues of mutual interest in the areas of energy, investment and tourism, Minister of Foreign Affairs Rafik Abdessalem said.

Maltese investors stated their will to draw on the opportunities offered by post-Revolution Tunisia, particularly in the areas of solar energy and tourism, the same source added.

They called for updating and enhancing the legal framework of co-operation and examining draft agreements in this area.

Spanish bonds jump ahead of Malta meeting

Spain's government bonds surged today,pushing 10-year yields down the most in four weeks, before Prime Minister Mariano Rajoy met his French and Italian counterparts amid speculation the nation will need to seek a bailout.

Spanish 10-year securities extended a weekly gain afterEuropean Central Bank officials yesterday reiterated they areready to start buying the bonds of troubled countries as soon asthe necessary conditions are fulfilled.

Portuguese 10-year bondsrose for a fifth day, the longest streak of gains in six weeks,after the nation completed a debt swap two days ago. Germanbunds declined as investors sought higher-yielding assets.