(BRUSSELS) - The appointment of Pakistan's new prime minister marks an "important step" for democracy in the volatile country, the European Union's Slovenian presidency said Tuesday.

"The appointment of the prime minister is an important step in the development of democracy, stability and security in Pakistan," the presidency said in a statement.

Earlier Tuesday, Pakistan's President Pervez Musharraf swore in Yousuf Raza Gilani, a key aide of slain opposition icon Benazir Bhutto, as prime minister.

Gilani will lead a coalition of Musharraf's opponents that won general elections last month.

The volatile situation facing Musharraf, a vital US ally against Al-Qaeda and the Taliban, was underscored when Gilani Monday freed judges whom the president detained because they threatened his grip on power.

In response to the move, the EU's presidency also said it "welcomes the release of judges detained under the recent emergency rule" and that the step "marks a positive move towards the restoration of rule of law in Pakistan."

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