Rethymno (Greece): The European Union (EU) has vowed to set up its own Army next year despite financial and political clouds while clearly disagreeing with the US over threatened military action against Iraq.

While massively outgunned by the US military might, the 15-member EU this weekend underlined its determination to stick to a timetable to build its long-stalled Rapid Reaction Force.

"We agreed on a clear political commitment to building the Rapid Reaction Force within the year 2003," said Greek Defence Minister Yannos Papantoniou at the end of two-day talks between EU Defence ministers on October 5.

"This goal will be met. This is our first priority, even though there was doubt at one stage about whether we could achieve it," he added.

The idea for the EU force was launched in 2001 with the aim of having it ready to deploy, within 60 days and for missions of up to one year, by 2003.

But the global economic slowdown has strained Defence budgets across the bloc, while political difficulties and the changed security landscape since September 11, 2001 have raised serious questions over the force.

Europe's military expenditure is dwarfed by the US, which spends more than double the EU's combined Defence budget, which stood at $ 116 billion in 2001.

Though Iraq was not on the formal agenda of the ministerial meeting, it overshadowed the talks from the start.

"Our objective is not regime change," EU foreign policy chief Javier Solana told reporters, demonstrating the clear trans-Atlantic gulf over the Iraqi question.