UPDATE 1-EU agrees on foreign policy powers -diplomats

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BRUSSELS, June 22 (Reuters) - European Union leaders reached broad agreement on Friday on the job title, role and powers of the 27-nation bloc's future foreign policy representative, diplomats said.

The provisional accord came on the second day of a crucial summit meant to launch negotiations on a treaty to reform the bloc's institutions, replacing the defunct EU constitution.

Under the deal, the foreign policy chief would be called High Representative of the European Union and serve also as vice-president of the executive European Commission, but would not get the title of "foreign minister" as in the constitution.

"It is mostly out of the way along those lines," an EU diplomat said.

The new figure would combine the positions now held by foreign policy chief Javier Solana, who reports to EU governments and does mostly crisis management, and External Relations Commissioner Benita Ferrero-Waldner, who controls the European Commission's aid budget and external relations staff.

Both of their terms expire in 2009, when the reform treaty would come into force, provided EU leaders agree on other, more difficult issues such as the voting system in decision making.

The new foreign policy chief would chair meetings of EU foreign ministers and head a combined external action service drawing on both national and EU diplomats, after Britain dropped its reservations on those points, the diplomats said.

Keywords: EU TREATY/FOREIGN