The great EU stitch-up: Low-profile Labour crony is made EU foreign minister - so a fanatical Belgian federalist can become President

By Jason Groves and James Chapman
Last updated at 12:49 AM on 20th November 2009

A virtually unknown Labour crony was last night installed as Europe's first 'foreign secretary'.

In a move derided as an EU stitch-up, Baroness Ashton was Britain's 'consolation prize' after Tony Blair's dream of the presidency was crushed.

The similarly low-profile Belgian prime minister Herman Van Rompuy - who favours the introduction of EU-wide taxes and the abolition of national flags and anthems - was named president.

He had been hot favourite to win the job as Mr Blair's bid crumbled in recent days. 

Congratulations all-round: Baroness Cathy Ashton (right) and Belgium's Prime Minister Herman Van Rompuy celebrate with a kiss after being named Europe's first foreign minister and first EU president respectively

Ashton who? French president Nicolas Sarkozy and Lithuanian president Dalia Grybauskaite greet the Baroness, while Brown looks on with Estonian prime minister Andrus Ansip (top right)

But the elevation of Lady Ashton - who only eight years ago was head of Hertfordshire Health Authority - to EU high representative had been unexpected.

Lady Ashton herself was so unprepared for her promotion last night that she had no speech ready when she held a joint press conference with Mr Van Rompuy.

Yet her new role will make her one of the world's most powerful unelected figures.

She will also be in charge of thousands of staff and have the run of a grace-and-favour home in Brussels. 

Lady Ashton helped steer the Lisbon Treaty, which has created her new job, through Parliament without a referendum as Labour leader in the House of Lords.

Since then, she has had an unimpressive spell as EU trade commissioner. 

Her appointment came as Gordon Brown ditched his support for Mr Blair's audacious bid to win the new EU presidency.

The former prime minister was dumped by Mr Brown before the EU's 27 leaders even started what had been billed as a marathon private meeting in Brussels to select a candidate for the post.

Downing Street said it had 'become clear that the chances of a Blair presidency, for a number of good reasons, were declining'.

Gordon Brown on Ashton's appointment: 'It shows that Britain is at the heart of Europe'

Mr Brown last night welcomed Lady Ashton's appointment as High Representative for Foreign and Security Policy. The Prime Minister said she would also hold the vicepresidency of the European Commission.

'It gives Britain a powerful voice both within the council and the commission,' Mr Brown said. 'It will ensure, of course, that Britain's voice is very loud and clear.'

But, adding to the sense that Lady Ashton had been plucked from obscurity, Mr Brown repeatedly referred to her as 'Cathy Ashdown'.

Lady Ashton had to be called on the telephone to see if she would accept the job once Mr Brown dropped his backing for Mr Blair.

Dashing to the summit after a swift celebratory drink with some of her team of EU Commission trade officials, she said: 'I am very honoured and proud to have been asked to take on this role.'

She added: 'I will make sure I represent our values across the world, and I will endeavour to do in my own way the best that I can.'

Say cheese: The winners Ashton (far right) and Van Rompuy (far left) are joined by Sweden's Prime Minister Fredrik Reinfeldt (centre left) and European Commission President Jose Manuel Barroso for an EU 'family photo'

Top job: German Chancellor Angela Merkel congratulates Ashton as Van Rompuy and Reinfeldt look on

Winners are grinners: Sarkozy shares a laugh with Van Rompuy whom he backed to the detriment of former British prime minister Tony Blair

All smiles: Ashton with her congratulatory flowers and Barroso address the press after the announcement

Lady Ashton will head up a 5,000-strong EU diplomatic service with 120 embassies around the globe, and have a say in the allocation of the bloc's £6.5billion foreign aid budget.

The job is expected to attract a salary of more than £200,000 a year, along with a grace-and-favour home and lavish expenses.

A former employee of CND, Lady Ashton will now be responsible for Europe's security and defence policy. 

The Prime Minister said he still felt that Mr Blair - whom he backed for the presidency - would have been 'excellent'.

But he added: 'As the week went by it became clear that the EPP [the centre-right grouping in the European Parliament] wanted to have one of their own members as president of the council.'

A senior No 10 source said Mr Brown's backing of Mr Blair, long after his chances had faded, had given Britain 'leverage' to get Lady Ashton the job as the second most powerful figure in the EU.

Side-by-side: French President Nicolas Sarkozy and German Chancellor Angela Merkel, pictured in Brussels, both backed Van Rompuy

Relief: Could Sarkozy be thinking, 'Thank goodness that's over'?

Friends of the bruised former prime minister - nicknamed 'Boney Blair' for his Napoleonic ambitions - said he was deeply disappointed by his rejection.

Mr Blair's biographer Anthony Seldon said the former prime minister was so angry over Tories' decision to try to torpedo his bid that he is willing to set aside his differences with Mr Brown and campaign for him in next year's General Election.

But he said Mr Blair's failure to get the EU post had also 'whetted his appetite for another big international role'.

Some EU leaders feared that they might be overshadowed by Mr Blair's grandstanding on the world stage.

Crushed: Tony Blair was ruled out of the running for the EU presidency when Gordon Brown switched his support to Lady Ashton

By contrast, Mr Van Rompuy, 62, and Lady Ashton, 53, are both virtually unknown outside their own countries.

Leaked documents yesterday revealed that the president will have a salary of £320,000, far in excess of the £197,000 paid to Mr Brown or the £245,000 received by U.S. president Barack Obama.

The total cost of the president and his team to the taxpayer is expected to top £5.5million a year.

Mr Van Rompuy somewhat cryptically promised to listen to all EU members.

'Even though our unity is our strength, our diversity remains our wealth,' he said. He is expected to take office on January 1.

Nigel Farage, leader of the UK Independence Party, said: 'The EU has this evening appointed two political pygmies who have the power to remove the last vestiges of democracy from the UK.

'Baroness Ashton is ideal for the role. She's never had a proper job, and never been elected to public office.'

Lorraine Mullally, director of the think-tank Open Europe, said: 'This is an outrageous stitch-up by Europe's elite.

'Meeting over a nice big dinner and behind closed doors 27 people in Brussels will decide on the two biggest jobs in Europe while the 500million citizens they are supposed to represent are expected just to hang on and wait for the outcome.'

Shadow Foreign Secretary William Hague, however, congratulated Mr Van Rompuy and Lady Ashton on their appointments.

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