Malta, which holds the current rotating EU presidency, is pitching the idea as a short-term measure to try to prevent a new spate of smuggling to Europe when spring arrives.
The European Union's naval anti-migrant smuggling task force, known as Operation Sophia, does not have approval yet either from the UN or Tripoli to operate in Libyan waters.
Malta's proposal about "empowering Libyan forces" questions whether it is "politically realistic" to expect that EU naval forces will be able to operate within Libyan waters in the months ahead.
This would be in Libyan waters "with Libyan forces as frontline operators, but with strong and lasting EU support," said the proposal prepared by Malta in agreement with European Council President Donald Tusk.
An EU summit in December called for increasing support to the Libyan coast guard, which the EU began training and equipping last October.
The Maltese document said the increased support could be carried out by the current train and equip programme under Operation Sophia, but said "the issue of financing needs to be addressed as a matter of priority for future trainings."
The EU proposal also raised the possibility of using its ties with Libya's neighbours Tunisia and Egypt to crack down on migrant smuggling.
Malta also wants to set up an arrangement with Libya similar to last year's aid-for-cooperation deal with Turkey that has dramatically slowed migrant landings in Greece, which had been the main entry point for Europe.
Arrivals over the central Mediterranean route, with Libya as the main launchpad, are picking up sharply with more than 180,000 migrants landing in Italy last year, compared with a previous annual record of 170,100 in 2014.
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