UPDATE 2-EU agrees on foreign policy powers -diplomats

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By David Brunnstrom

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.

They reached the provisional accord on the second day of a summit meant to launch negotiations on a treaty to reform the bloc's institutions, replacing the defunct EU constitution rejected by Dutch and French voters in 2005.

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 have 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 the EU leaders agree on other, tougher 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.

Luxembourg Prime Minister Jean-Claude Juncker, whose country is one of 18 that ratified the constitution, said there had been agreement on the name but details of the architecture of foreign and security policy still had to be discussed on Friday evening.

"We have changed the name of the foreign minister, so in fact no one will understand what it is about," he said.

But he noted that the words "of the European Union" had been added to the title held by Solana.

"This reflects the idea that the competences which are with the Commission and the Council are now in one hand," he said.

Keywords: EU TREATY/FOREIGN