FACTBOX-Main issues at European Union summit
Oct 29 (Reuters) - The European Union holds a summit in Brussels on Thursday and Friday. Here are some of the main issues the heads of government are discussing.
LISBON TREATY
Twenty-six of the 27 EU member states have ratified the bloc's Lisbon treaty, intended to ease decision-making and make the EU a more influential player on the world stage. It needs the backing of all member states to go into force.
Czech President Vaclav Klaus has said he will sign the treaty only if he secures an opt-out from the Charter on Fundamental Rights that is attached to the treaty. This opt-out is intended to shield the Czech Republic from property claims by ethnic Germans who were expelled after World War Two.
The EU's Swedish presidency has been negotiating with the Czech government on the opt-out and will brief the other EU leaders on progress.
The most likely outcome is that the EU leaders agree to add the Czech Republic to a list of countries that have an opt-out which so far includes only Britain and Poland.
The changes would not be included in the Lisbon treaty, as this would involve the 26 countries re-ratifying it, but would be included in the next treaty that the EU ratifies -- probably an accession treaty when the EU next takes in a new member.
Other EU leaders want Klaus to guarantee he will then ratify the Lisbon treaty, provided the Czech constitution court rules out a legal challenge next Tuesday. Political analysts say the court is widely expected to rule that the treaty is in line with the Czech constitution.
TOP JOBS
The delay in completing ratification of the Lisbon treaty has held up decisions on who will fill two jobs outlined in the treaty -- a long-term president of the Council of EU leaders and a high representative for foreign affairs with enhanced powers.
Diplomats say they expect no formal discussions and no nominations at the summit, but informal discussions are expected, at least on the job description.
Some member states want a powerful leader with name recognition outside the EU who would open doors in Washington, Beijing and Moscow. Others favour a more bureaucratic president who would lead by consensus and be skilled at securing compromises between member states.
The former option would favour British Prime Minister Tony Blair, who is widely seen as a potential candidate. Deciding on the latter job description would improve the choices of a less high-profile leader such as former Finnish Prime Minister Paavo Lipponen or Dutch Prime Minister Jan Peter Balkenende.
The Lisbon treaty gives greater powers to the EU's foreign policy chief, and creates an external action service designed to give the bloc more global influence.
The high representative will answer to EU governments and will also be a vice-president of the European Commission, the EU's executive, and manage its large external aid budget.
CLIMATE CHANGE
The EU is preparing its position for global talks on tackling the effects of global warming in Copenhagen in December but is divided over funding.
Member states are preparing to endorse an estimate by the European Commission that developing countries will need about 100 billion euros annually by 2020 to tackle climate change.
The Commission has made an initial estimate that 22-50 billion euros might have to come from public funds, with the rest coming from industry. The EU would contribute between 10 and 30 percent of that sum, depending on how the bill is split. This would be in the wide range of 2-15 billion euros.
Most EU member states oppose making such an explicit promise but they could yet reach agreement on the cost estimate of 22-50 billion euros.
The EU could also contribute billions of euros to developing countries in the years before the new climate deal takes effect, but nine of the bloc's poorer countries want those early contributions to be voluntary.
Before any deal is reached on the external funding, Poland and eight other countries in eastern Europe want an agreement reached on internal burden sharing to ensure they are asked to pay only what they can afford.
Some member states say the EU would show it is taking a lead on tackling climate change by agreeing a figure now, hoping to encourage other countries to agree on their contributions.
Others, including Germany, oppose setting a figure now for tactical reasons because they do not want the EU to show its hand. They suggest it would be better to agree on a figure nearer the start of the Copenhagen talks.
Eastern European states are also concerned that any deal reached in Copenhagen might invalidate spare carbon permits which they were granted under the Kyoto Protocol, the United Nations agreement on fighting climate change.
The spare permits, known as Assigned Amount Units (AAUs), were excess to their needs after their industries collapsed with the end of communist rule. They can now be sold for large sums to countries that are struggling to hit the carbon emissions quotas they were set under Kyoto.
But many other countries, such as Germany, now want that system scrapped because they say it undermines the spirit of the agreement to fight climate change. (Additional reporting by Pete Harrison; writing by Timothy Heritage; editing by Robin Pomeroy)
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