Proposals for severe cuts in the quotas have run into fierce opposition from European fishermen who say they will be driven into bankruptcy, and also from member states with large fleets which might have to be tied up at port for weeks on end.

Last year's quota deal took 28 hours of non-stop talks to achieve.

Not only must the quotas be agreed, with cuts that are large enough to halt a drastic decline in cod stocks, but ministers are also debating reform of the Common Fisheries Policy (CFP) - a much-criticised system blamed for causing the current crisis.

"It's completely deadlocked. I wouldn't expect a decision on such a big package (of proposals) until at least tomorrow morning, and maybe the evening, if last year is anything to go by," an EU diplomat said.

Most delegations are keen to see the executive European Commission further dilute its original proposals for quota reductions which called for cuts of up to 79 percent for cod.

Scientists say stocks of cod, a culinary staple in several European countries, stand at their lowest ever recorded levels in northern EU waters due to years of chronic over-fishing and have recommended a complete ban on cod fishing.

Fearing an even worse backlash from fishermen, the European Commission has avoided urging such a drastic course, but it insists on cutting the number of days vessels may spend at sea - 'fishing effort' - searching for the prized whitefish.

FURIOUS FISHERMEN

Ministers will now discuss a proposal to link a reduced fishing quota for those stocks most under threat of collapse with similar reductions in fishing effort. This is the main bone of contention for member states such as Spain and France, home to the bloc's largest and second largest national fleets.

In cases such as cod, this could mean just seven days permitted fishing every month. Haddock, hake and whiting would be similarly affected.

"The French are against the idea of effort limitation. This is a sticking point for most people," another diplomat said.

"But the idea of 'days at sea' would certainly have an effect on illegal fishing. It's being seen as quite a blunt but effective (negotiating) instrument," she said.

Brussels wants tightened measures to police the new limits, including port inspections, and says EU fish stocks are now so low partly because trawlers have cheated in their catches, falsified reporting or operated in prohibited areas.

Not surprisingly, the idea of leaving boats tied in port for three weeks out of every four has infuriated many cod fishermen who say it would devastate their local industry and bring ruin to entire coastal communities.

To make matters worse for them, the Commission's CFP reform plans envisage reductions in fleet size and the phasing-out of subsidies to build new vessels.

British fishermen held demonstrations and French trawlermen blockaded the ports of Calais and Boulogne last week in protest at the proposed CFP reform and quota cuts. If implemented, these would be the most severe cuts in the CFP's 20-year history.