The ban could be in force by the end of 2004 and, along with an EU law introducing hard-hitting health warnings on cigarette packets passed earlier this year, could cut the EU's number of smokers down from one third of the population to 20%.
The new draft law has dropped cinema, poster and "indirect" advertising from its remit after a previous attempt in 1998 was overturned last October by the European Court of Justice, saying such local media could be dealt with either nationally or at a more local level.
Instead, the new draft law focuses on cross-border media such as newspapers, broadcasting, internet and sponsorship. Television advertising is already banned in the EU.