European Union leaders endorsed plans on Friday to carry out tougher border checks and agree a common asylum policy by 2010 to fight illegal immigration to the wealthy region.
Endorsing the so-called "Hague Programme", leaders from the 25-nation bloc also agreed to improve exchange of information to fight terror and organised crime.
Terrorism and immigration have risen to the top of the EU's agenda following the September 11 attacks on US cities in 2001, growing anti-immigration sentiment in Europe, and higher numbers of illegal migrants dying while trying to enter the bloc.
"We welcome the fact that the European Council reaffirmed that justice and home affairs policy is a top priority in the European Union for the next five years," European Justice and Home Affairs Commissioner Antonio Vitorino told reporters.
He said the decision of states to do away with national vetoes on EU immigration issues was a boost for EU co-operation. However he lamented the fact that Germany and other states succeeded in keeping their veto on matters linked to legal migration.
EU heavyweight Germany has struggled with high unemployment for years and is worried that the bloc could agree rules, which would force it to open its labour markets to economic migrants.
Vitorino said the EU needed economic migrants from outside the bloc to counter Europe's problem of ageing populations, seen as a threat to economic growth in the future.
"This is an important step towards harmonising our legislation's and boosting Europe's efficiency in these matters," French President Jacques Chirac said of the programme. Another aspect of the strategy is a controversial plan to help African and Asian states protect refugees in their region of origin and stem the flow of illegal migration to Europe.
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