The Danish EU presidency last night presented a compromise text to European Union finance ministers mounting a last-ditch bid here to agree a savings taxation.

Ministers are struggling to reach a year-end deadline on how to tax savings held by citizens of the EU in banks outside their native countries.

The main sticking point to date has been a refusal by Switzerland, which is not a member of the EU, to agree to the free exchange of information on funds held by EU nationals in its secret bank accounts.

Luxembourg, Austria and to a lesser extent Belgium, which also have protective banking systems, are demanding further concessions from the Swiss.

Wednesday's extraordinary meeting was called after ministers last week again failed to strike a deal.

They face a December 31st deadline to reach agreement on an entire EU tax harmonisation package, or it will collapse.