The European Commission's 12-year attempt to reduce charges for cross-border money transfers in Europe is in danger of collapsing because of last-minute opposition from several European Union members and fierce lobbying by banks. At least six of the EU's 15 member-states, led by Germany, have expressed reservations over the proposals, which were expected to be approved at a council of ministers next Monday - the last chance to meet the commission's January deadline.

Their opposition could be enough to block the proposals in council and is a boost for Europe's banks, which have mounted an extensive lobbying campaign against the plans.

The proposed regulation would oblige banks to cut charges for transfers within the 12 euro-zone countries to the level of domestic charges by 2003. The charges for card payments and cash withdrawals would be cut to the domestic level by 2002.

Germany is believed to have presented a counter-proposal to freeze implementation of the Commission's proposal until July 2002, while Portugal, Ireland, the Netherlands, Luxembourg and Finland want delays of up to a year in the deadline.

The European Central Bank met yesterday but made no move on interest rates.