New Delhi: Welcoming Prime Minister Atal Bihari Vajpayee's peace initiative to Pakistan, the European Union (EU), during the two-day Indo-EU summit this weekend, will lay emphasis on resolving the Indo- Pak stand-off on Kashmir through bilateral talks.

"We welcome the peace initiative of Prime Minister Atal Bihari Vajpayee. The European Union will emphasise the need for resolution of Kashmir issue peacefully through bilateral dialogue at the summit as the issue had international ramifications," Italian Ambassador, Benedetto Amari told reporters in New Delhi.

Collective efforts to tackle the menace of terrorism, strengthening and reforming United Nations, restarting of World Trade Organisation (WTO) negotiations after the Cancun collapse are some of the other issues that would dominate the summit, beginning November 29.

Three agreements, including one on a 300 million euro commitment by New Delhi for its participation in EU's Galileo civilian satellite project, would be signed during the summit.

A customs co-operation agreement will be signed in which India and EU will commit to further deepening co-operation between their customs administration facilitating trade between the two.

A Maritime agreement is proposed to improve the conditions for maritime transport operations to benefit the economy by reducing shipping time and costs and enhancing efficiency.

While the Indian delegation will be led by Vajpayee, Italian Prime Minister Silvio Berlusconi, who is currently the European Council President, will lead EU at the summit.

PTI