U.N. hands Libya's warring factions unity government proposal

SKHIRAT, Morocco (Reuters) - United Nations negotiators on Monday presented Libya's warring factions with a draft proposal for forming a unity government, leaving them to consult with their supporters before resuming peace talks to end the civil conflict. Western officials say the U.N.-backed talks are the only hope of forming a unified authority and halting fighting between two rival governments and their respective armed forces. An internationally recognised government has been operating out of the east of the North African OPEC state since an armed alliance known as Libya Dawn took over the capital Tripoli and set up its own self-declared government last summer. Previous rounds of talks have seen the two governments and parliaments arguing for months about how to form a unity government, and the United Nations has called this round a last chance. U.N. special envoy Bernardino Leon told the delegations in the Moroccan city of Skhirat: "You will be receiving the latest draft of the proposed political agreement that has been at the heart of your discussions over the past few months." Delegates from both factions were expected to head to Germany for a meeting of European and North African leaders before returning to consult with their political bases and travelling back to Morocco to continue the talks. Details of the proposal were not immediately available. Libya's turmoil is a growing concern for European leaders as Islamist militants gain ground and smugglers take advantage to ship thousands of illegal migrants across the Mediterranean Sea from Libya to Europe. (Reporting by Aziz El Yaakoubi; writing by Patrick Markey; Editing by Kevin Liffey)