Giving a significant thrust to their strategic partnership, India and the 25-member European Union on Wednesday agreed to establish a security dialogue and intensify their joint fight against terrorism by blocking access to terrorist financing and rooting out money laundering.

Addressing a news conference at the end of two-hour-long meeting, Indian Prime Minister Manmohan Singh [Images] and British Prime Minister Tony Blair [Images] reaffirmed their commitment to fight the global network of terror.

"We recognise the fact that terrorism constitutues one of the most serious threats to international peace and security, and reaffirm our condemnation of all acts of terrorism in all its forms and manifestations as criminal and unjustifiable irrespective of their motives," the two sides said in a political resolution released at Hyderabad house after the meeting.

The two sides agreed to conclude a framework agreement on India's participation in the Galileo Satellite Navigation Systems, work towards an accord on maritime transport and launch a joint initiative on clean development and climate change, a two-page political declaration on the India-EU strategic partnership said.

Blair said that his country realised that India was a victim of terrorism. "India has suffered terrorism and we are also victims of terrorism. Terrorists kill innocents," he said adding that no matter what may be the cause of the terrorists, it could not be justified because terrorism does not lead to a solution. The only way out is negotiations."

He hoped that the countries round the world realise that they have to fight terror and implement the resolution of United Nations on this issue. Even Pakistan has to do the same, he pointed out. He stressed on the need to stop terror funding and said that the Central Bureau of Investigations could help

A 19-page joint action plan adopted at the summit outlined a nine-point agenda to strengthen cooperation in counter-terrorism efforts, that included establishing contacts between the Indian and EU counter-terrorism coordinators.

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With PTI Inputs