Round two

At half past one in the morning, after a long EU summit, the German press room in Brussels was a little short on cheer. "I should have joined in - it would have been better," said German Chancellor Angela Merkel, who turned 60 during the summit, laughing as one journalist belted out an off-key "Happy Birthday to You" while others kept quiet.

"Thank you. That was the first song for my birthday," she said. "The Council didn't sing, but they did present me with flowers and champagne. That was also nice."

But there was little else to laugh about at the summit, because there was no clear outcome in key personnel questions. "My conclusion was that we were not yet at the point where we could get a consensual solution on a whole package," outgoing Council President Herman Van Rompuy said. "There will be another summit on August 30."

Still in World Cup fever, some EU diplomats said it would be like sending the summit into "stoppage time."

Italy and eastern Europe unable to compromise

There was no solution to the dispute between Italy and some central and eastern European countries as to whether Italian Foreign Minister Federica Mogherini should become the new EU foreign policy chief. Italian Prime Minister Matteo Renzi insisted on his 41-year-old candidate, who has been in office only since February. Leaders from eastern European countries, especially Lithuanian President Dalia Grybauskaite, however, criticized Mogherini's lack of experience and her alleged close ties to Russia. As a result, other personnel issues could not be decided.

The other open position is presidency of the European Council - the body made up of EU heads of state and government.

"We need to see who is the most suited to become Council president so that they can somehow hold us 28 government leaders together - I'm strongly convinced of that," said Merkel. "I wouldn't make any suggestions based on political party preferences but rather ask, what is the big picture? All these questions could be debated for the first time this evening, but it will all amount to a good result."

She added that it was common in politics to only make a decision when there was real time pressure.

Hopes pinned on Juncker

The newly elected European Commission president, Luxembourg's Jean-Claude Juncker, has been entrusted with the task of putting together the EU's executive arm from the other 27 states by the end of August. Juncker asked for several candidates to be nominated per country, including as many women as possible.

The 28 EU member states' nominated commissioners are to undergo individual confirmation hearings with parliamentary committees in September. Then the European Parliament will vote to confirm them in their positions, though parliamentarians cannot accept or reject individuals - they can only vote up or down on the entire Commission.

It is not clear how Juncker will fulfill this mission without knowing who is to become the EU head of foreign policy. This post is also the post of the European Commission vice president. Juncker now needs to find a compromise between the interests of large and small as well as northern and southern EU states while also taking into account party membership and gender.

New sanctions against Russia

When it came to foreign policy, the EU leaders found some common ground on expanding sanctions against Russia in response to the Ukraine crisis. Companies supporting pro-Russian separatists in eastern Ukraine, whether through funds or supplies, will now be liable to penalties. Similar rules apply to companies supporting Russian decision-makers responsible for the secession of Crimea from Ukraine and for the uprising in eastern Ukraine. Additionally, Russia will not receive any further credit from European financial institutions and the European Commission is to suspend financial aid for projects with Russia.

According to EU representatives, the measures are not about tough economic sanctions or embargoes against entire economic sectors in Russia. But, said Merkel, from the perspective of the companies in question they are definitely a harsh move.

Russia under fire

Merkel placed the blame on Russia for the escalation of the conflict, mentioning that Moscow has ignored the ultimatums issued at the last EU summit together with Ukrainian President Petro Poroshenko.

"It's regrettable that we need to resort to such strong measures with regard to Russia," sad Merkel. "But the fact is, in light or President Poroshenko's visit and his expectations from his ceasefire, unfortunately, too little has resulted."

She added that Russia was not actively contributing to peace negotiations or controlling the border between Russia and eastern Ukraine, hostages were still being held captive and no contact group had been formed.

By the end of June, the European Commission is to draft a list of businesses and individuals whose bank accounts and business activities with Europe could potentially be frozen.

Russian President Vladimir Putin responded to the latest sanctions by telling news agencies that the measures would have serious consequences on Russia's relationship with the EU. Nevertheless, Merkel announced that the diplomatic efforts to settle the Ukraine crisis would be continued.