"The Nepalese people far too long have lived in an atmosphere of fear," said Pekka Metso, a foreign ministry Asia director for Finland, which holds the EU presidency.

"It is important that impunity should end, law and order be maintained and that civilians live without fear. There can be no place in today's Nepal for abductions, extortion and political violence," he said.

The impoverished Himalayan nation's Maoist insurgents and multi-party government have reached a peace deal that will see the rebels enter the political mainstream in return for placing their army and weapons under United Nations supervision.

The EU is "ready to give all possible support" to the process, Metso said.

A European Commission official also said the EU could provide election monitors for polls, due in June 2007, to elect a body to rewrite Nepal's constitution.

"We are looking very seriously at things like help with voter education and voter registrations and possibly further down the road, election observation," said James Moran, the European Commission's director for Asia.

During their three-day visit, the EU delegation met officials including Nepal's prime minister and rebel and government negotiators.

Nepal's Maoists and government had been slated to sign the formal peace accord Thursday, but it was delayed as the two sides completed last-minute negotiations.

At least 12,500 people have been killed in the Maoist's decade-long "People's War". The current peace effort is the third time that the two sides have tried to hammer out a deal.

Meanwhile, Nepal's Maoist rebels will remain on the United States' list of foreign terrorist organisations until they give up their weapons, a visiting senior US diplomat said Thursday.