In a joint statement at a summit with President Bush, the United States and European Union said the fledgling government in Baghdad "needs and deserves the strong support of the international community" if Iraq is to become a free and democratic nation.

The United States and 25-nation EU pledged to help reduce Iraq's estimated $120 billion foreign debt, support the training of Iraqi security forces as well as the economic and political reconstruction of Iraq. The 14-point statement said it also supported United Nations' help in rebuilding Iraq and setting up elections no later than Jan. 31, 2005.

The statement expressed a common commitment to support the Iraqi people and its new interim government as they "build a free, secure, democratic, unified and prosperous country at peace with itself, its neighbors and with the wider world."

The document also stated that the United States and EU support the mission of the multinational force for Iraq, which includes protecting the UN presence there.

"We recognise the vital need to combat terrorism and maintain security and stability in Iraq," the declaration said.

"We stress the need for full respect of the Geneva Conventions. We also support the training and equipping of professional Iraqi security forces, capable of assuming increasing responsibility for the country's security."

Iraq has been a touchy issue in Europe, causing major rifts between the United States and allies such as France and Germany who opposed the US-led invasion of Iraq. Both France and Germany have been hesitant about enlarging Nato's role in Iraq, but have left the door open to training programs.

The EU statement said its members "support the training and equipping of professional Iraqi security forces, capable of assuming increasing responsibility for the country's security, as requested by Prime Minister (Iyad) Allawi."

Allawi sent a letter to Nato this week pleading for "urgent help" from the alliance to build up Iraqi forces "to defeat the terrorist threat and reduce reliance on foreign forces."

From Ireland, Bush heads to Turkey where he will join leaders of the 26-nation Nato alliance at summit talks Monday and Tuesday focused on Iraq. Administration officials expressed confidence that Nato would accept a bigger role in Iraq, offering to train security forces and provide equipment.

The United States had once hoped Nato would send peacekeeping troops to Iraq, but that idea died under fierce opposition from France and Germany.

On the economic side, the United States and the EU signed an agreement Saturday to make the EU's planned satellite navigation system compatible with the existing US Global Positioning System.