BRUSSELS, Dec 12: European Union leaders on Friday approved a defence pact strengthening the bloc’s ability to mount independent military operations but remained divided on plans for a new constitution.    The defence deal — reluctantly approved by the United States — will go into effect next year, before the EU expands to 25 states.

“Now we can sit at the table with world powers on an equal footing,” Italian Prime Minister Silvio Berlusconi told newsmen.   

European foreign policy would only be taken seriously if the EU had the “military authority” to back it up, said Mr Berlusconi.   British Prime Minister Tony Blair said the pact was compatible with North Atlantic Treaty Organization and left the alliance as the cornerstone of European defence.    

The EU plan is less ambitious than initially envisaged by France and Germany but gives the bloc both military planning and operation capabilities.

An existing defence planning unit in the EU Council of Ministers will be beefed up.

The plan also calls for the setting up of a permanent EU “cell” inside NATO’s European headquarters. In return, Nato will also maintain a liaison office at the EU.    Seeking to ease American concerns, the leaders agreed that Nato would be the “forum for discussion and the natural choice for an operation involving the European and American allies.”   

But when Nato on a whole was not engaged, they said, the EU would choose whether to use the organization’s assets and capabilities in undertaking military missions.   

If they decided to act without Nato, EU military operations would either be conducted by national headquarters or by using the joint EU defence planning body.   

 The agreement ends months of fraught discussions between Berlin, Paris and London on building up independent EU defence.    Britain had demanded the EU should not duplicate Nato military structures and capabilities.

Despite the breakthrough deal on defence, EU leaders remained bitterly divided over a new constitution with Spain and future member Poland fighting to curtain the clout of the union’s heavyweights Germany and France by retaining voting rights agreed three years ago.

But Berlin and Paris pressed hard for a change in the EU’s decision-making, saying countries with larger populations must be given more influence.

The new so-called “double majority” voting system favoured by Germany and France would allow decisions to be taken if they were backed by 50 per cent of EU states, representing 60 per cent of the EU population.

French President Jacques Chirac said the new method was more democratic and closer to the vision of Europe harboured by the EU’s founding fathers.

The leaders will continue talks on Saturday and perhaps into Sunday morning.