While the council of ministers recognises Iran's right to develop a nuclear programme for civilian purposes, the nature of some aspects of this programme raises serious concern EU statement

In a statement agreed at a meeting in Luxembourg on Monday, they called on Iran to conclude and implement urgently and unconditionally an additional protocol to the Nuclear Non-Proliferation Treaty allowing for short-notice inspections of suspected nuclear sites.

BBC correspondent Oana Lungescu says that despite the strong language this is only a warning, though the EU may have to take a firm decision soon.

With Iran in mind, foreign ministers earlier adopted a series of principles on preventing the spread of weapons of mass destruction all over the world.

In what is being seen as a significant move, the EU indicates it does not rule out the use of force - but only, the document makes clear, if political dialogue and sanctions have failed, and with the United Nations Security Council playing a central role.

"The acquisition of WMD or related materials by terrorists would represent an additional threat to the international system with potentially uncontrollable consequences," an EU document said.

This is the first time that the EU has included a reference to possible military action against states or terrorist groups which acquire such weapons.

Reuters quoted diplomats as saying that Germany initially tried to oppose the move but was persuaded by France to back it.

'Significant step'

In the statement on Iran, EU ministers expressed "serious concern" over Iran's nuclear activities, urging Iran to co-operate fully with the IAEA.

If there is no progress on the nuclear issue and on human rights, it would be difficult to pretend we can do business as usual with Tehran EU diplomat

It added that Iran had to answer any questions about its programme in a timely, full and adequate way.

Iran's implementation of the additional protocol would be "a significant step in demonstrating Iran's stated peaceful intentions with regard to its nuclear programme", it said.

George Papandreou, foreign minister of Greece, the current holder of the EU presidency, said he was in personal contact with IAEA chairman Mohamed ElBaradei and would follow his lead on this matter.

The EU ministers said that improved trade links with Iran should be conditional on Iran's co-operation.

Some EU countries want trade talks with Iran halted, but a majority believe the EU should keep the door open to dialogue, as a means of obtaining greater transparency on nuclear issues and more progress on human rights and political reforms in Iran.

"If there is no progress on the nuclear issue and on human rights," an EU diplomat told the BBC, "it would be difficult to pretend we can do business as usual with Tehran."