And the European Union's British presidency said it hopes for agreement on the new rules by next month, despite a request by the new government in Germany -- which has a huge chemicals industry -- for a delay to study the proposals.

The new law seeks to balance health and environment protection with business resistance to a fresh dose of regulation over subtances in everything from soap powder to children's toys and food additives to building materials.

The EU's plan is to set up a system for the registration, evaluation and authorisation of chemicals (REACH) under which companies have to register all chemicals used and provide information about them and potential hazards.

The new rules, which have been under discussion for over two years, would also clamp down on the use of animals to test new chemicals.

But the chemicals industry has been lobbying lawmakers hard for rules that are not too strict, warning jobs are on the line, while ecologists are pushing for tough regulations to protect consumers and the environment.

"Chemicals and raw materials are vital for the EU economy," said business leaders' federation UNICE, pointing out that Europe produces 28 percent of the world's chemicals, with an industry turnover of 360 billion euros.

"We ... welcome the desire to produce an effective regulatory framework for the safe management of chemicals," added the European Chemical Industry Council (CEFIC), which represents 27,000 companies in Europe.

"We believe, however, that some crucial workability issues remain to be solved before the system can work in practice and achieve its objectives."

Britain, which currently holds the EU's six-month rotating presidency, had hoped to secure a deal from EU governments by the end of November.

But that attempt was put on hold after incoming German chancellor Angela Merkel's new government asked for a delay to allow the new government in Berlin to study the dossier.

British junior environment minister Lord Bach said however that he still hopes for a "political agreement" by the end of London's turn at the EU helm, on December 31.

"This legislation offers a once in a lifetime opportunity to achieve proper protection of humans and the environment while at the same time being workable and maintaining the competitivenss of European industry," he added.

The main political groups in the EU parliament agreed last week on a broad compromise, which was being discussed by EU lawmakers Tuesday ahead of a vote on Thursday.

But discordant voices remained in the EU assembly.

"If the agreement reached by (the parliament's main parties) is voted through, we risk getting legislation that would be a major setback for the environment and for people's health,"said leftist MEP Jonas Sjostedt of Sweden.

Environmental group Friends of the Earth underlined their opposition with a protest outside the Strasbourg parliament, featuring 100 garden gnomes.

"Don't dwarf REACH," said a banner. "After the intense lobbying of the chemicals industry, REACH as it stands today is nothing but a vague reminder of its original form," said the group's Aleksandra Kordecka.