Controversial new rules for hedge funds and private equity funds were on Tuesday backed by European Union finance ministers in Brussels.

The move follows a similar endorsement by a group of EU lawmakers on Monday â?? and means that regulation of the industry in Europe has now moved much closer.

There are, however, significant differences in the detailed regulation proposals agreed by the member statesâ?? ministers and parliamentarians. As a result, there will have to be potentially difficult negotiations between the member states, parliamentarians and eurocrats at the European Commission in an effort to arrive at a single common set of rules that all three parties are willing to support.

Those discussions will start on May 31. It is hoped that the issue could be finally resolved before the long summer break in Brussels, which starts at the end of July.