UPDATE 4-EU agrees on new post of foreign policy chief

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By David Brunnstrom and Mark John

BRUSSELS, June 22 (Reuters) - European Union leaders agreed on Friday to create the powerful new post of foreign policy chief to give the 27-nation bloc a greater voice on the world stage.

But they agreed not to use the title of EU foreign minister following opposition from Britain and the Netherlands, making clear that member states will have the final say over national foreign policy.

The role was designated "High Representative of the Union for Foreign Affairs and Security Policy" under a deal at a summit meant to launch preparations for an EU treaty to replace the bloc's defunct constitution.

"We have changed the name of the foreign minister, so in fact no one will understand what it is about," Luxembourg Prime Minister Jean-Claude Juncker, whose country is one of the most ardent backers of EU integration, noted ironically.

The new figure will combine the positions held by EU foreign policy chief Javier Solana, who deals mostly with crisis management and reports to national governments, and External Relations Commissioner Benita Ferrero-Waldner, who controls the Commission's huge aid budget.

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

"It is now clear, and for us it is very important, that it will be vice-president of the European Commission ... so that was great," European Commission President Jose Manuel Barroso said of the arrangements that will unite both arms of EU foreign policy under one figure.

EU officials hope the step will go some way to answering the question of former U.S. Secretary of State Henry Kissinger, who famously asked whom he should call when he wanted to speak to Europe.

But the accord said there would be no impact on "the responsibilities of member states ... for the formulation and conduct of their foreign policy nor of their national representation in third countries and international organisations."

That appeared to reflect a British demand that the person responsible for EU foreign policy should be able to speak only on behalf of the bloc on the U.N. Security Council with the express permission of Council members, such as itself or France.

Assuming agreement is reached on an overall treaty, the creation of the post will start speculation as to who will be the first to fill it.

Some observers say it may be too late for 64-year-old Solana. Another name that comes up frequently in speculation is that of Swedish Foreign Minister Carl Bildt. (Addiitonal reporting by William Schomberg, Yves Clarisse and Niclas Mica)

Keywords: EU TREATY/FOREIGN