The European Commission is proposing mandatory logging by phone companies and Internet providers of all emails, telephone calls and other electronic communication.
Viviane Reding, the Commissioner for Information Society and Media told a telecoms industry conference today that Reding said the legislation should be put forward by the Commission rather than member states in order to ensure transparency.
She will make the legislative proposal jointly with EU Justice, Freedom and Security Commissioner Franco Frattini, but the step could spark a clash with some member states.
Ireland, Britain, France and Sweden made a similar proposal in April last year in the aftermath of the Madrid train bombings, which killed 191 people.
Ms Reding said she shared the overall objective in the member states' bill, but that harmonisation of any data retention obligations was an internal market matter and therefore the Commission should frame the legislation.
A proposal by the Commission would have to be agreed by the European Parliament and member states, making the process more transparent, she said. "This will help find the right balance not only in terms of privacy and consumer confidence, but also in terms of cost for the industry," she added.
The Commission would also request an analysis of the impact legislation would have so that a bill is proportionate, she said.
She said she did not know whether the four member states would withdraw their bill. But EU diplomats say justice and interior ministers may agree their own proposals they put forward last year when they meet in Luxembourg this week
Civil rights activists, telecom and Internet firms want the member state bill scrapped or diluted substantially as they say it would be overly intrusive, costly and technically difficult.
The Council of Ministers also put forward a proposal last year for all telecommunications data to be stored for a year to help the police solve terrorist and other crimes. The seizure of phone records was credited with helping police make quick arrests after the Madrid bombings.