ESDP: POLITICAL AGREEMENT ON EU DEFENCE AGENCY CONFIRMED.

The Agency's Steering Board is expected to meet at the level of Defence Ministers at least twice yearly, as well as regularly at "representatives level". Regarding staff, an "adequate cadre" - some 25 personnel - could in place by the end of 2004, building up in 2005 to the proposed initial "steady total" of around 80. This would comprise a "top team", a Corporate Services branch and four directorates (Capabilities, Research & Technology, Armaments, and Defence Industry/Market).

Agency budget.

The Joint Action provides for a general budget, to be contributed by participating Member States on the basis of a GNI (Gross National Income) key, covering operating costs such as personnel and infrastructure. The Agency will also have funds for research such as operational analysis and feasibility studies, and may receive "ad hoc" budgets from EU Member States for specific projects and programmes.

The budget for 2004, which will be mainly for staff-related costs, is expected to be under Euro 2 million. The 2005 budget will come to the Steering Board for decision in the Autumn. Present estimates foresee a general budget of around Euro 25 million, including around Euro 10 million in initial setting-up costs.

Other ESDP issues.

The Council also approved on June 14 an Irish EU Presidency report on European Security and Defence Policy (ESDP) and decided to submit it to the June 17-18 European Council. In their Conclusions, Ministers touched on preparations for the prospective takeover by the EU from NATO of peace-keeping duties in Bosnia and Herzegovina, as well as on...