Gadhafi Faces EU Sanctions Calls over 'Bloodbath'

Europe moved Wednesday to isolate Libya's Moammar Gadhafi, with France calling for sanctions and a freeze in financial relations while Italy accused the veteran strongman of perpetrating a bloodbath.

With hundreds killed in a week of raging protests, Europe has struggled with how to exercise leverage against Gadhafi, in power for more than 41 years and whose country provides Europe with a large slice of its energy needs.

French President Nicolas Sarkozy called for the European Union to adopt "swift and concrete sanctions" and suspend all economic and financial relations, the strongest yet call for action.

"All those involved in the ongoing violence (should) know that they must assume the consequences of their actions," Sarkozy said amid reports that Libya's military hardware is being used against protesters to devastating effect.

The international community cannot "remain a spectator when faced with these massive human rights violations," Sarkozy said.

Libya's government and rights groups say that hundreds have been killed in the protests which erupted on February 15 after the rulers of neighboring Tunisia and Egypt were ousted in similar uprisings.

The foreign minister of Libya's former colonial master and biggest trade partner Italy, Franco Frattini, said Gadhafi was perpetrating a "horrible bloodbath" against his people that "the Gadhafi government has announced and is continuing to carry out."

Gadhafi appeared on state television on Tuesday, vowing to hunt opponents of his regime, purging them "house by house" and "inch by inch".

But speaking on a visit to Prague, the European Union President Herman Van Rompuy said anyone who carries out attacks on civilians must face punishment and condemned the "horrible" violence that had been committed.

"I particularly abhor the violence that is being committed against people who stand for freedom and justice in Libya," he said during a visit to Prague.

"I have seen horrible crimes that are unacceptable and must not remain without consequences."

German Chancellor Angela Merkel described Gadhafi's televised address as "very scary".

"We are calling on the Libyan authorities to stop the violence against their own people," Merkel said.

"If the violence does not stop ... we will consider sanctions," she added.

Several European Union countries, notably Germany and Finland, called for sanctions against Gadhafi at talks in Brussels on Monday between foreign ministers of the 27-nation bloc.

The issue of sanctions is nevertheless divisive within the EU with countries like Italy fearing what Frattini described as an immigrant exodus on a biblical scale, predicting up to 300,000 Libyans could try to flee their country.

Italy is already grappling with a mass influx of immigrants from Tunisia since the fall of its veteran ruler but Frattini said that would be nothing compared to the number of immigrants that could flee neighboring Libya.

"There would be an exodus of biblical proportions, a problem that Italy cannot, must not underestimate," Frattini told the Corriere della Sera daily.

Sanctions could include a travel ban and assets freeze on Gadhafi and his inner circle.

"If Gadhafi keeps killing people the way he has it's a necessity to do something," an EU diplomat said. "Sanctions must be discussed in this situation, otherwise it would be contrary to European policies."

But diplomats said Italy and Malta objected, with Cyprus too apparently cautioning against any such move.

Several European nations also have major economic stakes in the North African nation, including French and Italian oil giants Total and ENI, while sanctions could be perceived in Libya as foreign involvement in the protests.

Belgian Foreign Minister Steven Vanackere said on Tuesday that "the hour is not right for flexing muscles.

"If the situation deteriorates there will be time to draw the proper conclusions."