India and the EU stand together in combating terrorism which is a serious threat to international peace and security

"We reviewed the situation in Afghanistan and Pakistan and emphasised the need for concerted international action to combat terrorism," Manmohan Singh said.

"What happens in Afghanistan and Pakistan affects us intimately more than any other country in the world. We have vital stakes in the peace, progress and stability of not only Afghanistan but also Pakistan," the prime minister said.

"We hope the international community will stay the course in meeting these problems. It requires collective efforts on part of the international community."

Expanding counter-terror cooperation figured prominently in discussions between Manmohan Singh and the EU leaders at the daylong summit here.

"We have agreed to work towards an early finalisation of the agreement between Europol (the nodal criminal intelligence unit of the EU) and India," he said.

"India and the EU stand together in combating terrorism which is a serious threat to international peace and security," said Reinfeldt.