Declare truce with Maoists

"The EU urges the king to declare a truce and uphold international human rights and humanitarian obligations to provide a conducive environment for peace building," the EU said in a statement.

The 25-nation bloc also called on the Maoists to "announce an immediate cessation of violence for political ends and to implement their undertaking in good faith" in a bid to bring peace to the Himalayan country.

"A complete cessation of hostilities between the Maoists and the government is a crucial step towards a lasting peace," it said, encouraging all parties to work towards the launch of a national dialogue.

Maoist rebels, who have been fighting for a communist republic in Nepal since 1996, on Friday extended their three-month unilateral ceasefire by one month.

The Maoists and seven mainstream opposition parties agreed last month to form an anti-royal alliance to restore democracy, setting out a 12-point plan and calling for an end to fighting and for elections held under UN auspices.

Under the agreement, the Maoists would lay down their arms under UN or other international supervision while a new constitution was drafted.