The ministers were also discussing a new arms agency and a proposed military planning cell for the expanding European Union, as well as the bloc's planned takeover of a peacekeeping force in Bosnia.

The battle group plans were unveiled late last year by France and Britain, to which Germany later catched on, after the first-ever EU military mission outside Europe, a French-led force that helped quell fighting in the Democratic Republic of Congo.

Under initial proposals, 1,500-strong contingents would be deployable within 15 days and able to stay on the ground for a month. Other EU states are expected to be invited to join in the initiative, due to be finalized by June.

Diplomats said developing the battle group plans was a key item on the agenda of defence ministers, who were meeting for the first time since Ireland took over the rotating EU presidency in January.

The new EU arms agency -- covering procurement, development and research, which was approved last November -- notably aims to boost cooperation between EU states and strengthen Europe's defence industry.

The EU, which expands from 15 to 25 members on May 1, has long pursued ways of increasing cooperation on defence matters, while insisting that there is no question of duplicating capabilities with the US-dominated NATO alliance.

The ministers were due to review progress on a military planning cell to boost cooperation between EU states. The idea initially sparked protests notably in NATO and Washington, but a watered-down version of it was agreed in December.

The cell, which has yet to be set up, will consist of a few dozen military officers and civilian personnel based with the EU's existing military staff in Brussels and focus on planning out operations which NATO doesn't want.

Diplomatic sources said the EU "still has to agree on a level of ambition" for the cell, which is being overseen by the bloc's foreign policy envoy Javier Solana.

Also on the agenda in Brussels are plans for the European Union to take over the Stabilization Force in Bosnia (SFOR), currently headed by NATO. The EU launched its first-ever peacekeeping operation in Macedonia, last March.

The ministers will also want to cover defence issues related to terrorism, the war in Iraq, and recent ethnic violence in Kosovo, where NATO heads peacekeeping forces, sources said.

WAR.WIRE