Barroso's cabinet

The Portuguese president of the European Union's executive arm in Brussels unveiled the portfolios assigned to the 26 commissioners who will accompany him during his second five-year mandate at the helm of the European Commission.

“I have put together a strong commission to fill the enhanced role of Europe on the world stage provided by the Lisbon Treaty," Barroso said.

EU heavyweights Germany and France were awarded the energy and internal market portfolios respectively.

While many of Friday's nominations were anticipated, the financial services decision marks a setback for Britain, which had been looking to rein in EU proposals to regulate financial services across Europe from Brussels. There had been a lot of diplomatic wrangling over a post which will control supervision of the EU market for financial services, 80 percent of which is in the City of London.

As the official tasked with defending the EU's internal market, former French foreign minister Michel Barnier will also oversee the upcoming reform of the bloc's financial supervision system.

Media reports indicated that French President Nicolas Sarkozy indulged in some late-night arm-twisting with Barroso over the telephone before overcoming British resistance. However Barnier's department is to be headed up by an English minder, Jonathan Faull, who's currently in charge of the day-to-day running of the justice and home affairs portfolios.

Barroso said the need to "complete" the job of creating a borderless EU market for services as well as industry was why he ruled out hiving off responsibility for banks, insurers and other markets as Britain had sought.

The European Commission handles the money -- a 116-billion-euro ($174 billion) budget for 2008 – for the 27-nation bloc.

Competition, trade and climate

Spain's Joaquin Almunia handed over the powerful economic and monetary affairs portfolio to outgoing Enlargement Commissioner Olli Rehn of Finland. Almunia himself took control of the bloc's competition policy, which carries vast anti-trust and cartel powers affecting businesses around the globe.

Commission President Barroso also handed the coveted post of trade commissioner to former Belgian foreign minister Karel de Gucht, making it the second top job for the EU's host country after Herman Van Rompuy was named full-time bloc president.

Outside the all-important economic areas – where Brussels wields most of its power and influence – Barroso also named Denmark's Connie Hedegaard to the new job of climate commissioner. She will lead EU preparations in negotiations on an international treaty to fight the impact of global climate change at the United Nations climate summit in Copenhagen next month.

Energy post for German

The energy portfolio – critical as Europe bids to switch to a low-carbon economy – has gone to German Guenther Oettinger, a newcomer in Brussels.

Good relations between Berlin and Moscow were thought to have played a key role in Barroso's decision to appoint the outgoing premier of the southwestern German state of Baden-Wuerttemberg to the energy portfolio.

The EU imports most of its gas from Russia and suffered severe shortages last winter following a spat between Russia and neighboring Ukraine, through which EU-bound pipelines pass.

Horse-trading

The appointments follow weeks of secretive consultations in Brussels and not-so-secret horse-trading in national capitals. Under EU rules, the 27 member states are entitled to one commissioner each.

The new commission is being established at a time when the single European market – home to half a billion people and the world's biggest trading entity – is due for major modernization.

The nominations have still to be vetted by the European Parliament early next year.

The commission runs the EU on a day-to-day basis, proposing legislation, implementing decisions and defending its common rules.

Along with the team leader, there are 13 new faces. All the others were already members of the outgoing college. "This is a perfect blend of experience and new thinking," Barroso, who's from Portugal, said.

rb/AFP/dpa

Editor: Kyle James