Copenhagen: India on October 10 rejected European Union's fresh nudge to de-escalate tension and resume dialogue with Pakistan as the two sides failed to agree to take a joint position on the issue following sharp differences between the two sides as also dissensions within the 15-nation grouping.

"We didn't agree on the text," Danish Prime Minister and President of European Council Andres Fogh Rasmussen said at a joint press conference with Prime Minister Atal Behari Vajpayee at the end of the third India-EU summit when asked why there was no mention of Kashmir in the joint statement.

Observing that elections in J&K and Pakistan were important events in the Indian subcontinent, he said the EU urges India to "de-escalate tense relations with Pakistan" and engage in direct talks for a peaceful solution to all contentious issues.

Firmly outlining India's position, Vajpayee said, "We would like to de-escalate (the situation) but Pakistan has to first stop cross-border terrorism."

"In the recent elections in J and K, candidates were killed, voters threatened and even security forces were made targets. De-escalation requires a peaceful and congenial atmosphere," he said.

PTI