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EU, known as the European Security and Defence Policy.
ECONOMIST: NATO's future
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The EU's 15 leaders approved a detailed report on European security and defence policy, compiled by France, but the scheme is viewed with concern by some NATO members, including the United States.
CNN: NATO battles EU over defence
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In principle, November's agreement paves the way for co-operation on other areas of policy, such as European defence and security, where Lib Dems feel that Mr Blair has anyway stolen some of their best ideas.
ECONOMIST: Why Paddy will miss Peter most