EU: No more sanctions on EU companies to work with Libya  The EU agreed in principle to lift an 18-year-old arms embargo on its companies, bowing to pressure from Italy which wants more strong relations with Libya Rome has for several months been pressing its European Union (news - web sites) (EU) counterparts to lift the embargo imposed on EU companies to export to Libya in 1986. 'We are heading in the direction of lifting (the embargo). It still has to be confirmed by .... ministers," said one source, expressing caution since Germany, Denmark and Ireland say they want to "verify" details of the accord. But they have no fundamental problems with it. "In principle there shouldn't be any surprises," he said, after the in principle agreement was reached by EU officials from the 25 member states meeting for regular talks in Brussels. Sanctions were imposed on Libya because of its role in state-sponsored terrorism, including the 1988 Lockerbie bombing (news - web sites). They were partially eased last year, paving the way for Tripoli to compensate victims' families. In theory the ban should be lifted at the next meeting of EU foreign ministers, scheduled for October 11-12 in Luxembourg, officials said.   Italy welcomed the EU announcement. Foreign Minister Franco Frattini "expressed his keen satisfaction following the accord reached today in Brussels on the total lifting by the European Union of the embargo imposed on many EU companies. The Italian government said last week it was determined to press the matter forward, even if the EU struggled to agree unanimously on the issue.