EU Leaders named Belgian Prime Minister Herman Van Rompuy as the Union's first president tonight and appointed Briton Catherine Ashton as its foreign affairs chief.
A consensus was reached at a summit in Brussels after Britain dropped its insistence that former British prime minister Tony Blair should become president, ending weeks of deadlock and opening the way to agreement on Mr Van Rompuy.
The appointments are intended to bolster the EU's standing and help it match the rise of emerging powers such as China following the global economic crisis.
But Mr Van Rompuy (62) and Ms Ashton (53) are low-profile compromise candidates little known outside the EU and at least initially will not have the clout in foreign capitals that an established statesmen such as Mr Blair would have had.
"The deal has been done. Both positions have been agreed," said an EU diplomat present at the talks, which involved all 27 member states.
The leaders had sought a political balance to satisfy member states and the European Parliament, whose approval is needed for Ashton. This was achieved by appointing a centre-right president and a centre-left high representative for foreign affairs.
Mr Van Rompuy, who will not need the assembly's approval, won plaudits for holding together a fragile coalition government after becoming prime minister less than a year ago.
Ms Ashton, a baroness and former member of the House of Lords, Britain's upper house of parliament, is hardly known even in Britain and has little foreign affairs experience. But she has made a good impression since becoming the EU's trade commissioner, its top trade official, last year.
British prime minister Gordon Brown's insistence that Mr Blair should become president had been an obstacle to agreement, but a breakthrough became possible when he backed down and decided instead to back Ms Ashton for the foreign policy job.
"As it became clear that the chances of a Blair presidency, for a number of good reasons, were declining, the prime minister made the decisive intervention in this meeting (to stop backing Blair)," a spokesman for Mr Brown told reporters.
Agreement on Mr Van Rompuy and Ms Ashton prevented a failure at the summit that would have highlighted the divisions in a bloc representing nearly 500 million people, and undermined the goal it had set of boosting the EU's image on the world stage.
In backing Ms Ashton, the leaders also answered calls by many EU officials for a woman to have one of the Union's top posts.
The post of president of the council of EU leaders was created under the EU's Lisbon treaty, which is intended to make decision making easier now the bloc has 27 member states.
The foreign policy high representative received enhanced powers under the treaty, which goes into force on December 1st, and will be in charge of a new EU diplomatic corps.
Agencies