Al-Qaeda's north African branch has acquired a stockpile of weapons in Libya, according to the EU's counter-terrorism coordinator.
Gilles de Kerchove said the turmoil in Libya has allowed members of al-Qaeda in the Islamic Maghreb (AQIM) group to gain access to weapons including surface to air missiles, which posed a risk to flights over the territory.
Small arms and machine guns are also believed to have been seized by the group.
At a news conference marking the 10th anniversary of the 11 September attacks in the United States, Mr De Kerchove said that while the threat of strikes by al-Qaeda followers had decreased, AQIM was taking root both on the Arab peninsula and in Africa.
Meanwhile, Muammar Gaddafi is in good health and in good spirits somewhere in Libya, his spokesman Moussa Ibrahim said in remarks broadcast today.
"He is in a place that will not be reached by those fractious groups, and he is in Libya," Moussa Ibrahim told the Syrian-owned Arrai TV in response to a question on the whereabouts of the Libyan leader ousted by rebels last month.
He said Gaddafi's son, Saif al-Islam, was also in Libya, moving around from one place to another.
Forces of Libya's interim ruling council are poised for an assault on the desert town of Bani Walid after negotiators failed to persuade Gaddafi loyalists to abandon one of their last remaining bastions.
The town is one of just a handful of areas in Libya still under the control of Gaddafi loyalists after a six-month rebellion ousted the leader from Tripoli last month.
Outside the town, a negotiator for the National Transitional Council forces now in control of the country said talks with tribal leaders were over.
Tribal elders from Bani Walid had come out to negotiate after NTC spokesmen said several times over the previous day that talks were over and they were about to attack.
There has been speculation from NTC officials that members of Gaddafi's family, perhaps even the former Libyan leader himself, may be hiding there.
No comment was available from the other side.
Anti-Gaddafi forces have also closed in on the deposed leader's birthplace in the coastal city of Sirte.
To the east, Sirte fighters were dug in and also said they were ready to advance.
In Tripoli, life has started returning to normal. Traffic has become heavy as fuel supplies improve, cafes are busy and offices have begun opening.
NTC officials have announced plans to bring their heavily-armed fighters under control and try to integrate thousands of them into the police force and find jobs for others.
Officials said there would also be retraining and reintegration schemes for those who fought for Gaddafi.
Britain to investigate Gaddafi spy links
An independent inquiry will investigate allegations that British security services were involved in illegally sending terror suspects to Libya where they risked being tortured by Gaddafi's government.
An inquiry set up by the British government last year to look into whether its security services knew about the torture of terrorism suspects overseas will be expanded to include allegations about dealings with Gaddafi's Libya.
Documents found in the abandoned Tripoli office of Gaddafi's intelligence chief indicate US and British spy agencies helped Gaddafi persecute Libyan dissidents, Human Rights Watch said on Saturday.
The British inquiry, headed by retired appeals court judge Peter Gibson, said it would consider the allegations of British involvement in the transfer of terrorism suspects to Libya as part of its work.
