Last July, the General Affairs Council formally adopted a decision establishing the European External Action Service. Ms Ashton, the Union “foreign affairs minister”, soon, will be assisted, in carrying out her mandate to conduct the Common Foreign and Security Policy, by the EU diplomatic service. Despite the denials, it is obvious that such EAS will interfere with the UK diplomatic service.

Ms Ashton is expecting the EU diplomatic service to be up and running by December 2010.

According to the draft proposal for a regulation amending Regulation on the Financial Regulation applicable to the general budget of the European Communities, as regards the European external action service, the EEAS “will have budgetary autonomy” meaning “its own section in the EU budget.” It will, therefore, implement its own administrative expenditure and will receive the European Parliament’s discharge for it. However, under the compromise deal the EAS's operational expenditure, projects and operations to be put in place, would be integrated in the Commission's budget. The Commission has therefore responsibility for its implementation. The European Parliament will have full budgetary and considerable control power over the EEAS.

The EEAS does not have yet its own budget. The Council has recently adopted its position on draft amending budget no.6 to the EU's general budget for 2010, proposed by the Commission, aiming at providing the EEAS “with financial and human resources necessary for its establishment as soon as possible in 2010.” The Council approved the creation of a new section X in the EU budget for the EEAS, establishing a budgetary structure to cover the EEAS administrative expenditure and establishment plan. It still has to be approved by the European Parliament.

The draft amending budget entails the transfer of means and posts, 1114 from the Commission (Section III), 411 from the European Council and the Council (Section II), and the creation of further 100 new AD posts as well as the recruitment of 60 local agents in delegations and 10 contract agents in headquarters, amounting EUR 9.52 million. Although separately identified, the posts to be transferred from the Commission and the General Secretariat of the Council will continue in the establishment plans in corresponding sections of the European Commission and the Council in order “to ensure continuity of administrative and contractual obligations till the end of the year.” In the 2011 budget such posts will be removed from the establishment plans of those institutions. The additional appropriations for the EEAS corresponding 70 contract agents and local agents are inscribed in the Commission's section of the budget.

According to the Council "The establishment of the EEAS should be guided by the principle of cost-efficiency aiming towards budget neutrality.” However, the EU diplomatic service would not be “budget neutral” as promised by Ms Ashton. There are start up costs which require further funds. At a time of severe strain on the majority of Member States’ public finances, whilst government departments are facing spending cuts, Brussels is asking for 100 new AD posts as well as additional local agents and contract agents “to fulfil the additional tasks conferred by the Treaty.”

On 15 September, the European Commission presented a draft amending letter revising the 2011 draft budget, proposing the creation of the new EEAS budget section. The EEAS will have therefore its own full budget for 2011. The Commission's proposal covers transfer of appropriations from the budget sections of the Commission and the Council to the budget section of the EEAS.

In 2011, the administrative expenditure for the EEAS will amount to EUR 475,8 million.
The EEAS establishment plan provides for 1 643 posts, of which 1 114 posts
are transferred from the Commission and 411 from the Council. It is important to mention that the draft amending budget 6/2010 has requested further 100 new posts, and the present amending letter requests more 18 new posts. At a time where several member states are cutting their budgets and have been applying pay freezes to their civil servants Brussels is demanding more posts for the EEAS. According to the Commission theses posts are requested “to address the most urgent needs in relation to increased
workload resulting from taking over tasks previously carried out by the rotating
presidency and other tasks flowing from the Lisbon Treaty, and to consolidate the
EEAS capacity to function autonomously.”

The Commission has estimated the total remuneration expenditure at EUR 211,9 million.
The appropriations transferred from the Commission to the EEAS are estimated at
EUR 152,4 million and from the Council at EUR 40,9 million, which is not enough to cover that amount. The Commission has estimated the remuneration expenditure for the 100 new AD posts, in 2011, at EUR 17,4 million. The required additional expenditure for the remuneration of 18 new posts is estimated at EUR 1,2 million. Hence, the expenditure for remuneration of the required new posts is estimated at EUR 18,6 million. Moreover, the EEAS will also have around 2 077 of other full-time staff, including seconded national experts, contract agents, agency staff, and local agents whose expenditure is estimated at EUR 70,4 million. Part of those appropriations, EUR 58,3 million will be transferred from the Commission budget and EUR 9,6 million
from the Council budget which, obviously, is not enough.

Appropriations are also needed to cover the annual remuneration of the additional staff requested in the draft amending budget 6/2010, 10 contract agents at headquarters estimated at EUR 0,4 million, and 60 local agents in delegations estimated at EUR 2,1 million.

The Commission has estimated EEAS other administrative expenditure at EUR 193,5 million, including EUR 36,28 million for staff training, medical services and missions, EUR 157,3 million for buildings and IT equipment. The buildings and related expenditure has been estimated at EUR 112,7 million. The High Representative is planning to take a decision on the EEAS premises within one month. However, the draft amending letter revising the 2011 draft budget states “That may entail the need for corresponding additional appropriations, which would then be requested in an amending budget.” Moreover, additional EUR 6,0 million are being requested “to cover needs for buildings related to the additional staff requested draft amending budget 6/2010” and EUR 0,1 million “to cover needs for buildings related to the 18 additional
posts requested for 2011.”

Furthermore, additional EUR 3,3 million is being requested
to “upgraded security” in EEAS “definitive premises.”

The IT, equipment and other operating expenditure has been estimated at EUR 44,6 million. This expenditure will be covered with EUR 27,7 million to be transferred from the Commission budget and EUR 14,5 million from the Council. However, additional EUR 2,4 million are requested to cover the needs for IT and equipment related to the additional staff requested.

Hence, in 2011 the administrative expenditure of the EU's new diplomatic service amounts to EUR 475,8 million, of which €359.2m will be transferred from the 2011 draft budget of European Commission, €82.2m from the 2011 draft budget of the Council however additional EUR 29,2 million are required to cover the expenditure of the new posts required in draft amending budget 6/2010 and €5.2m to cover the costs of the abovementioned 18 new posts and to enhanced the security of the EEAS premises. Thus, the EU diplomatic service is far from being “budget neutral.” In fact, the draft amending letter revising the 2011 draft budget reads “After completion of the transition and with a better view on budgetary requirements, the EEAS may present revised estimates of expenditure with possible additional demands in the course of 2011 to be included in a draft amending budget.” Consequently, additional resources are likely to be required.
The 2011 budget still has to be negotiated by the Council and the European Parliament.

The European External Action Service will be composed by a combination of diplomatic services of the Member States and officials from the Council General Secretariat and of the Commission. In what concerns staff and their recruitment the EEAS would be treated as an institution within the meaning of the Staff Regulations. All staff of the EEAS would be covered by the Staff Regulations and the Conditions of Employment of Other Servants. The High Representative is the “appointing authority.” The EEAS will include officials from the Commission external relations directorate (DG Relex), and Council secretariat as well as personnel seconded from the diplomatic services of the Member States. The departments and functions in the General Secretariat of the Council and in the Commission external relations directorate (DG Relex) would be transferred to the EEAS. Such transfers will take effect on 1 January 2011. The EEAS decision reads “When the EEAS has reached its full capacity, staff from Member States should represent at least one third of all EEAS staff at AD level.” According to the European Parliament the majority of the EEAS personnel should come from the Commission and the Council. It was therefore agreed and added to the decision that 60% of the EAS staff should come from the EU institutions rather than from member states. According to Emar Brok "This will ensure, as parliament wished, that it will not based on a workforce of national diplomats.”

The Commission delegations in third countries are being transformed into "Union delegations” under the authority of the High Representative. Over 130 delegations of the EU will be part of the EEAS’s structure. The EU delegations represent the EU and not just the Commission and will take over the role and functions undertaken by the embassies of the member states holding the rotating presidency, in terms of local coordination and representation of the Union. The Union delegations will include EEAS staff as well as staff from relevant Commission services. The Union delegations will be led by a head of delegation that will have authority over all the delegation’s staff. Moreover, the head of each delegation would have the power to represent the EU in the country where the delegation is located, they would be, therefore, the “EU's ambassadors.”

The selection procedures for EEAS staff is supposed to be based on merit and with due regard for gender and geographical balance. Ms Ashton has proposed the establishment of a Consultative Committee on Appointment (CCA) composed of representatives of the Member States, the Commission and the General Secretariat of the Council who would also be involved in the recruitment procedure. The CCA proposes a short list of candidates for appointment by the High Representative. All candidates for posts of heads of delegations are subjected to selection procedures, but the Commission has to agree on a shortlist of candidates. Last July, the Commission approved the Head of Delegation shortlists on a proposal from the High Representative.
On 15 September, Ms Ashton has appointed 27 new Heads and 1 Deputy Heads of EU Delegations around the world, she said "As promised to member states, the European Parliament and EU citizens, I have appointed the best people for the right jobs.” In order to address complaints as regard lack of geographical and gender balance, the High Representative said “These appointments show an improvement in both, but there is more to do. I will be discussing with member states how we can continue to improve and achieve my ambition of a service that is truly representative and appointed on merit." However, the MEPs have already shown their discontent with Ms Ashton appointments, saying that she has broken her pledge to ensure gender and geographical balance.

The Member States have taken 12 posts whereas the European Commission has taken 16. Unsurprisingly, the head of the EU’s delegation to China went to Markus Ederer from Germany.

By threatening to veto any amendments to the financial and staff regulations, the MEPs have won important concessions from Ms Ashton in the shape of the EU diplomatic service. The MEPs will not be able to hold official confirmation hearings of the EU ambassadors, nevertheless, according to Ms Ashton’s declarations on political accountability “The HR will respond positively to requests from the European Parliament for newly appointed Heads of Delegations to countries and organisations (and EU Special Representatives) … to appear before AFET for an exchange of views.” The European Parliament’s foreign affairs committee has yesterday decided who of the new Heads of EU Delegation appointed will be invited to appear before the committee. Hence, the EU's new ambassadors to China, Georgia, Japan, Lebanon and Pakistan as well as the EU Special Representative to Sudan will have to appear before AFET in October. The MEPs decided that the informal hearings would be held in public. Although the MEPs cannot confirm or refuse confirmation of the appointments, Ms Ashton would be under pressure if an EU's ambassador is considered by the MEPS unsuitable for the post.

Ms Ashton will unveil her nominations for the other top diplomatic posts in November. It is still unknown when the top administrative nominations will be revealed. The EEAS will be managed by an Executive Secretary-General, who, under the High Representative’s authority. The Executive Secretary-General will be assisted by two Deputy Secretaries-General. The member states are already fighting over the EEAS’s high-ranking posts, being the post of Executive Secretary-General the most wanted. Unsurprisingly, it seems that this post will go to a French diplomat, Pierre Vimont and Helga Schmid, a German EU official, will be one of the Deputy Secretaries-General whereas the other might be Mikolaj Dowgielewicz, Poland’s minister for Europe. This would be another horse trading.

It is important to note that the salaries of the EU diplomats and administrative staff will vary between €52,000 and €216,000 per year. Some will earn more than David Cameron and William Hague.