The European Union (EU) has lauded Egypt's improved state of human rights, and the authorities' decision to limit the new state of emergency to fighting terrorism, its financing, and drug-related crimes. The EU also urged comprehensive new rights legislation in Egypt in the wake of the revision of the decades old emergency law that was extended for two years. "I note Egypt's decision to limit the new state of emergency to fighting terrorism and its financing and drug-related crimes," said European Union Foreign Affairs Chief Catherine Ashton in a statement Wednesday night. "However, I strongly encourage the Government to speed up the steps needed for the adoption of an anti-terrorism law compliant with international human rights standards as soon as possible," she underlined. The EU launched its annual report on human rights in Egypt after debates with Egyptian rights activists and parliamentarians. The controversial law, which gives police wide powers of arrest, suspends constitutional rights and curbs non-governmental political activity, was backed by a majority of Members of Parliament in Egypt's 454 strong parliament. Cairo has criticised "disappointed" US reaction to the revision as "too politicised," saying it failed to recognise the law's positive aspects. The state of emergency was imposed in 1981 after the assassination by Islamists of President Anwar Sadat and has been repeatedly renewed since then.