Italian Prime Minister Silvio Berlusconi said the latest version of the plans would now "please" Washington, whose fears of Europe's military direction were heightened by the vocal opposition of some EU nations to the war in Iraq.

"It's an agreement that recognises the importance of NATO and of a full cooperation with the alliance," the EU's current chairman told reporters at the start of a two-day summit in Brussels.

"It's an agreement that will certainly please our American friends," Berlusconi added.

The latest version of the accord proposed by the EU's Italian presidency foresees setting up a unit linking EU military officers, who would be responsible for planning and carrying out independent operations.

The unit would be based with the EU's already existing military staff in Brussels.

An EU unit attached to SHAPE, the military headquarters of NATO in Mons, Belgium, would also be made permanent.

The EU and in particular Britain has been careful to stress that its plans will not double up with or undermine NATO, insisting the US-led transatlantic alliance remains on the front line of Europe's defence.

EU countries say rather that it is high time the bloc had its own capability to plan for operations that NATO would prefer not to get involved in.

The bloc launched its first-ever peacekeeping operation, in Macedonia, in March. It has also sent troops under French command to the Democratic Republic of Congo and is working on plans to succeed NATO peacekeepers in Bosnia.

The Brussels summit faces potential deadlock over a new EU constitution, but Berlusconi said the defence accord, "which has been concluded and will apply, should allow for this summit already to be spoken of as a success".

"The defence accord is important. It allows Europe to wield an independent military force which will let it sit at the same table, with equal dignity" as the other great powers, he said.

The defence accord is outside the scope of the new EU constitution, but the historic document does contain proposals for reinforced cooperation between member states on military matters.

It also contains a "mutual defence" clause requiring other countries to come to the aid of an EU member under attack. Language still has to be found to satisfy the EU's four neutral nations -- Austria, Finland, Ireland and Sweden.

The United States had reacted sharply against proposals for a fully fledged EU military staff headquarters put forward in April by France, Germany, Belgium and Luxembourg -- which all campaigned against the war in Iraq.

Britain, which along with France is one of the EU's two military heavyweights, later came on board but only on condition the plans were significantly watered down.

NATO chief George Robertson said late Thursday the 19-nation alliance could accept the latest version of the EU defence plans.

"If it is clear this is not a permanent establishment but simply the reinforcement of national sectors, then I think not only could we live with that but it could be advantageous," he told journalists.

Robertson, asked if he believed the United States would object to the plans, said: "I speak for the alliance so I better be pretty confident that what I say usually conforms with what the consensus will be.

"There's been a fairly heavy discussion behind the scenes in order to get to this point," he said.

WAR.WIRE