Up to 30,000 jobs could be lost as the European commission announces reform of the EU fisheries policy in a bid to protect dwindling fish stocks.

The reforms are expected to face strong opposition from Ireland and Southern European countries, who would be most affected by slashed catch quotas.

Fisheries commissioner, Franz Fischler, described the decision as "make or break time" for the industry.

"Either we have the courage to make bold reforms now, or we watch the demise of our fisheries sector in the years ahead," he said.

"The desperate race for fish has to stop. Over-capacity is the enemy - not only of the fish stocks, but also of the future of our fishermen.

"We want EU aid to work for conservation, not against it. This means more EU money to help fishermen, more money to scrap vessels, no more money for building new vessels.

"Only the right balance between our fleet and available fish will bring economic stability to the EU fleet and maintain employment in coastal areas."

Fish stocks in the North-East Atlantic are currently two thirds below safe biological limits.

However, critics have claimed that the proposals have been delayed and diluted following intervention by European president, Romano Prodi, and Spanish prime minister, Jose Maria Aznar.

Spain currently receives half the one billion euros fisheries budget, and directly employs 65,000 fishermen - compared to 16,000 in Britain, where the fleet has already been cut by a fifth.

The Spanish government is also opposed to the exclusive access UK fishermen have to parts of the North Sea.

The commission would like to pay fishermen to leave the industry and ending subsidies - a move which would provide finance to scrap and rebuild boats.

Under the new deal, quotas would also be linked to the state of marine ecosystems, a proposal which has already received the backing of environmental groups.

Fisheries minister, Elliot Morley, welcomed the proposals.

"This long-anticipated review comes not a moment too soon. Fish stocks like North Sea cod and hake are currently at risk of collapse," he said.

"However, elsewhere in Europe decommissioning and effort reduction measures are being undermined by misdirected boat building schemes.

"It does not make sense to fund new-build when capacity is already so far out of line with fishing opportunities"

Discussions at the council could go on until next year."It is essential that a reformed CFP safeguard the 6 and 12-mile exclusions zones around our coasts. At all costs the Government must ensure that an agreement is reached by the end of the year. Otherwise the present agreement will lapse and the Government will have allowed a European free for all in our coastal waters," said shadow fisheries minister David Lidington.

"Spain's interference over the last few weeks in the drawing up of proposals for the reform of the CFP has been extremely disturbing. The Common Fisheries Policy must be reformed now while we still have a British fishing industry left to defend."

Liberal Democrat fisheries spokesman, Andrew George, said that the common fisheries policy needs fundamental reform.

"The fisheries policy must stick to proven science. Unless we want to experience the kind of collapse witnessed by the Canadians on their east coast, then it is essential that the dire warnings about the health of stocks are heeded and acted upon," he said.

"It is right that the commission should resist calls from France, Spain and others and refuse to allow taxpayers money to be invest in new fishing efforts.

"Investment should not be in new build at this stage but in stock recovery. Public money could probably be more usefully employed in compensating fishermen for not targeting certain waters and particular species.

"This is the best opportunity in a generation to get EU fishing policy right. If we fail then we fail the next generation of fishermen."