Europe to unveil key new economic chiefs

(BRUSSELS) - The head of the European Commission was to unveil his new 27-strong line-up on Friday after late-night "adjustments" to key economic portfolios prized by the big EU member states.

According to a European diplomatic source, commission chief Jose Manuel Barroso has offered the plum post of trade commissioner to former Belgian foreign minister Karel de Gucht, currently in charge of development and humanitarian aid.

Belgium has already claimed the top job of European Union president for Herman Van Rompuy.

The new executive takes office in early 2010, and de Gucht would be replacing Britain's Catherine Ashton -- chosen by European Union leaders to be its new foreign affairs supremo. She remains as Barroso's key deputy in the executive team.

An official announcement is to take place later on Friday.

The European Commission handles the money -- a 116-billion-euro (174-billion-dollar) budget for 2008 -- for the 27-nation bloc, home to half a billion people and the world's biggest trading entity.

It proposes and enforces laws from Portugal in the west to Poland in the east, and Finland in the north to Greece and Cyprus in the south-eastern Mediterranean.

Liberal de Gucht will notably take charge of negotiations for Brussels on multi-billion bilateral trade deals.

Ashton last month announced an end to negotiations with South Korea over a package said to be worth 19 billion euros a year to EU exporters.

De Gucht will take forward similar talks with India, several southeastern Asian states and Canada.

The similarly powerful post of competition commissioner will "very probably" go to Spain's Joaquin Almunia, currently in charge of macro-economic and monetary affairs.

Almunia is in China on Sunday, to meet Premier Wen Jiabao for talks on policy decisions affecting all-important currency markets in Asia, Europe and the United States.

The energy portfolio should go to German newcomer Guenther Oettinger, the diplomat said.

But in what would be a significant setback for Britain, France's former agriculture minister Michel Barnier could win the internal market job -- the object of much wrangling as it includes responsibility for supervising the market for financial services, 80 percent of which is in the City of London.

French President Nicolas Sarkozy was involved in late-night arm-twisting with Barroso, according to French sources, seeking to overcome British resistance.

Prime Minister Gordon Brown has made it a personal priority to rein in EU proposals to regulate financial services across Europe from Brussels.

Opposition foreign affairs spokesman William Hague, whose Conservatives are expected to be Britain's largest party after a general election next year, has also warned that "our French partners have a different view on market issues that touch on Britain's vital economic interests."

The single European market is due for major modernisation over the commission's five-year term in office, to reflect the age of digital commerce.

Meanwhile, a new post of climate commissioner -- to lead EU preparations in negotiations on an international treaty to fight the negative effects of global climate change -- could go to Denmark's Connie Hedegaard.

Finland's Olli Rehn, previously in charge of dealing with countries led by Croatia, Iceland and Turkey who want to become EU members, is favourite to take over Almunia's economic dossier.

The European parliament has to vet Barroso's nominations before his team can start active duty in February.