BRUSSELS, Dec 8: The European Union on Monday welcomed Pakistan’s raid on a suspected militant camp and the arrest of a suspected ringleader of last month’s deadly attacks in Mumbai.

The bloc’s External Relations Commissioner Benita Ferrero-Waldner said Pakistan had taken a “courageous step” against the alleged terrorist group Jamaatud Dawa, suspected of funding the Lashkar-i-Taiba.

Ferrero-Waldner called for more action by Pakistan against extremist groups and also announced a new 50 million euro aid package for the country, saying it would be used to boost existing EU aid programmes in the fields of education, trade and farming in Balochistan and the Frontier province.

“The border area is very important,” she said, adding that educational programmes were particularly important in a destitute part of the country that is also widely believed to be a breeding ground for terrorists.

The commissioner insisted that Pakistan would have to step up the fight against corruption and provide better security guarantees to ensure that the European aid was well spent. “They really have to crack down on terrorism,” she said.

Ferrero-Waldner said the EU would respond to Pakistan’s calls for the opening of negotiations on a free trade agreement next year. The 27-nation bloc is still undecided on whether Pakistan is ready for such talks given the weakness of its economy.

The commissioner made the comments as EU foreign ministers held a rare discussion on relations with Islamabad and the need to shore up the democratically-elected civilian government.

“Pakistan faces numerous challenges and deserves our support,” said Ferrero-Waldner, adding that a ministerial EU “troika” would go to Pakistan early next year to bolster political ties with the country.

“We have to work on strengthening Pakistan’s democratic institutions,” she said, adding that this would include support for the National Assembly and help with the reform of electoral legislation.