Zee Media Bureau/Deepak Nagpal
Brussels: Leaders of the European Union on Friday said distrust caused by revelations that US agencies spied on foreign leaders, including German Chancellor Angela Merkel, could impact the global cooperation in the fight against terrorism.
They called for a new code guiding spying by the end of the year, the BBC reported.
In a statement, EU leaders said a lack of trust "could prejudice co-operation in intelligence gathering".
They however added that the bloc values its close ties with the US.
This partnership "must be based on respect and trust, including as concerns the work and cooperation of secret services", the Europeans stressed.
Earlier in the day, France and Germany had demanded an agreement with the US over new rules on espionage.
Merkel had arrived at the two-day talks saying: "Spying between friends, that`s just not done" after reports the US National Security Agency had eavesdropped her calls.
"We need trust between partners and such trust needs to be re-established," she said.
The agenda of the summit was to discuss boosting employment and the digital economy but was quickly overtaken by the growing scandal which has embroiled US President Barack Obama in embarrassing exchanges with key allies -- from France and Germany to Brazil and Mexico.