EU to create military planning cell in '04

British Prime Minister Tony Blair said the final accord fully met London's concerns about a potential overlap with NATO, a major bone of contention also for the United States.

"This gives us the opportunity to keep the transatlantic American alliance very strong, but making sure that in circumstances where America is not engaged in an operation, and where vital European interests are involved, that Europe can act," Blair told reporters.

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"That's exactly what we wanted, and doing it in a way that's completely consistent with NATO as the cornerstone of our alliance," he said.

The EU plans to set up a unit linking EU military officers, who would be responsible for planning and carrying out operations independent of NATO.

The unit will be based with the EU's already existing military staff in Brussels. A separate EU unit attached to SHAPE, the military headquarters of NATO in Mons, Belgium, would also be made permanent.