The European Union's executive arm said that the funds were part of a package of emergency measures to encourage restructuring of segments of fishing fleets hardest hit by the current fuel crisis.

The new money only became available after European Commission President Jose Manuel Barroso insisted in the face of reluctance from some commissioners to lift subsidies.

However, after protests against fuel prices in southern Europe, he was encouraged by countries such as France, whose fishing sector has long complained that its cries for help fall on deaf ears in Brussels.

The package, which the commission first outlined in June, is to be financed in part by the European Fisheries Fund (EFF), which has a budget of 4.3 billion euros for the period from 2007 to 2013.

"In addition to the EFF, the commission has pledged up to another 600 million euros to fund this temporary specific action to help the fishing industry to adapt to high fuel prices," it said in a statement.

The package would raise the amount of public aid allowed in the sector from 30,000 euros per operation over three years currently to 100,000 euros, as urged by France and Italy.

The commission also pledged to consider emergency aid to help fishermen who refrain from going out to sea during a maximum period of three months, as long as it is part of a restructuring.