A statement agreed by the ministers meeting in Luxembourg said the EU acknowledged the urgent financial needs of the rebel transitional council in Libya.
'The mobilisation of international resources, including where possible, through the use of Libyan frozen funds, in compliance with the provisions of the relevant UNSCRs (United Nations Security Council Resolutions), is key to support the inclusive transition process aimed at fostering national reconciliation,' the statement said.
The statement added that 'measures in this respect will respect the rule of law', a reference, EU officials said, to the need for EU lawyers to ensure such steps were legally possible.
Libya's cash-strapped rebel authority said yesterday it expected to start replenishing its empty coffers this week with the first batch of money promised by its foreign allies.
The rebels say they need more than $3bn to cover salaries and other needs in the next six months and have won promises of financial assistance from Western and Arab supporters.
Libya's economy relies on oil exports and the rebels have struggled to make ends meet as damage to energy infrastructure caused by the civil war has brought production to a halt in what used to be a major OPEC oil producer in North Africa.
The EU has imposed sanctions, including asset freezes, on dozens of Libyan individuals and companies seen as supporters of Gaddafi in an effort to persuade him to give up power. They include firms in the oil sector.
A bill that would allow US President Barack Obama to use up to $10bn in frozen Libyan government assets for humanitarian aid to Libyans caught in the civil war has stalled in the US Senate.
The US is holding more than $34bn as part of sanctions imposed in late February against Gaddafi and his top officials. Under the measure, none of the assets could be used to buy weapons or military equipment.
Earlier NATO admitted it destroyed a house in Tripoli in which Libyan officials said nine civilians, including two children, were killed.
A NATO statement said a military missile site was the intended target.
The Libyan government spokesman slammed as a 'cowardly terrorist act which cannot be justified' an attack on an estate of a veteran comrade of Gaddafi.
A NATO statement said a precision air strike was launched against a 'high-level' command and control node in the Sorman area early today.
This strike will greatly degrade Gaddafi regime forces' ability to carry on their barbaric assault against the Libyan people,' said Canadian Lieutenant General Charles Bouchard, commander of NATO operations in Libya.
'Wherever Gaddafi tries to hide his command and control facilities, we will find them and destroy them.'
A NATO official said the alliance was aware of regime allegations that 15 people, including three children, were killed but had no way of verifying them.
