The political agreement was reached despite strong opposition to the existing laws being tightened from powerful lobby groups within the chemicals industry.

Ecologists and health campaigners were quick to condemn the accord as a compromise that was watered down and would not properly address serious threats to the environment and human health in the 25-nation bloc.

The plan sets 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 European Commission, the EU's executive body, said it expected the meaures to enter into force by the first half of 2007, with operational requirements scheduled to start from 2008 onwards.

"This agreement puts an end to a long period of uncertainty for industry and helps them plan for the very challenging task of meeting the new requirements," said commission vice president Guenter Verheugen.

"We have succeeded in making REACH more effective and more workable. And we have succeeded in maintaining the competitiveness of EU industry, and a crucial point, reducing the burden for small and medium-sized companies," he said.

The new rules, which have been under discussion for more than two years, will now be sent to the European Parliament for its second vote of approval in the second half of next year -- a procedure that is seen as a formality.

Under the new REACH laws, companies would have to register the manufacture of all chemicals produced in quantities of more than 10 tonnes per year EU-wide.

They would also have to supply a complete data record for chemicals produced in quantities of between one and 10 tonnes if they are cancer causing, show high levels of toxicity or are particularly hazardous in other respects.

In all, some 30,000 different chemicals are produced in quantities of one tonne or more per year, and some 10,000 in quantities exceeding 10 tonnes.

"This agreement will represent a marked improvement in the protection of health and the environment," environment commissioner Stavros Dimas said in a statement.

"It will reduce chemical related disease and will allow users and consumers to make informed choices about the substances they come in contact with," he said.

But the European consumers' organisation, BEUC, said the agreement reached by the council of member states had weakened the original aim of the rules.

"BEUC is extremely disappointed by the decision taken by the council today to further water down the REACH proposal," the group's director Jim Murray said in a statement.

The Greens group in the European Parliament described the agreement as member states sending a "Merry X-mas for the chemical industry."

"Council made a big Christmas present to the chemical industry -- and citizens got the rod," said UK Greens member Caroline Lucas. "This is very bad decision-making at the expense of human health and the environment."

Swedish Environment Minister Lena Sommestad was also critical.

"We would have liked to go further," she said, quoted by the TT news agency.

The implementation of the new laws would be overseen by a new agency based in Finland and staffed by representatives from each country.

The EU chemical industry is estimated to be worth 360 billion euros (429 billion dollars) in annual sales, accounting for 28 percent of world-wide production.

Source: Agence France-Presse

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