A group of MEPs representing areas in the Midlands are enlisting the support of several European countries in their fight against proposed European legislation to relax precious metal regulations.

The Precious Metals Directive would abolish hallmarking, the traditional means of guaranteeing the quality of precious metals, with dire consequences for the economy of Birmingham.

The city's Court of Assay, where platinum items and other precious metal-based goods are tested for purity, is said to be threatened by the threat to third party testing.

Italian jewellery makers, who claim the testing adds to their costs and distorts the European jewellery market, support the change.

Ireland, the UK, Portugal, France and Spain would all have to abandon their historic commitment to third-party regulation if the Directive were passed unchallenged, instituting a system of voluntary self-marketing across the Union.

Conservative MEP Malcolm Harbour said that Spain, Holland and Austria would each vote against the move:

'The signs are now very encouraging that this matter will go no further after we have had positive feedback from Spain, Holland and Austria', he said.

'The British authorities and MEPs have adopted a tactic of steadily grinding down the opposition by explaining in detail the consequences of the directive and it has worked.'

There are also fears for the general standard of precious metals across the EU, as well as for the health of local industries. Campaigners were mindful of incidents of faking in Southern Europe, and a well-publicised crackdown on the practise in China.