New Delhi, Nov. 6: India and the European Union today signed a pact on a nuclear energy project and decided to conclude their long-delayed free trade treaty by next year.

The two sides also agreed to expand cooperation in countering terrorism by speeding up negotiations between Europol, the EU’s top criminal intelligence organisation, and Indian agencies. The agreements followed talks at the 10th India-EU summit here between Prime Minister Manmohan Singh and leaders of the 27-member bloc.

The EU team included Swedish Prime Minister Fredrik Reinfeldt, whose country currently heads the rotating EU presidency, and European Commission chief Jose Manuel Barroso.

India will participate in the International Thermonuclear Experimental Reactor project. The project on fusion energy is said to be the costliest experiment of its kind costing 10 billion euros (around Rs 70,000 crore).

The first reactor is expected to be ready in Cadarche, France, by 2016.

The pact was signed by Atomic Energy Commission chairman Anil Kakodkar and Benita Ferrero-Waldner, the EU’s external relations commissioner who represented the European Atomic Energy Community (Euratom).

The discussions between Singh and the EU leaders covered a broad spectrum of issues, including the global financial crisis, energy security, climate change, trade and counter-terrorism. The situation in Afghanistan and Pakistan also came up.

On terror, Swedish Premier Reinfeldt said: “India and the EU stand together in combating terrorism, which is a serious threat to international peace and security.”

Trade was also high on the list. It was decided that the talks for a free-trade pact, launched in 2007, should be wrapped up next year.