Ireland and Spain have rejected a deal aimed at settling a dispute between the two nations over fishing rights in Irish waters.

While Ireland contends its fishing area is a special conservation zone created in 1985 (when Spain and Portugal joined the eu) to protect depleting fishing stocks, Spain insists it has unrestrained access to the waters since the agreement that limited fishing in the stretch expired on December 31, 2002.

The compromise pact that fell through was proposed by Greece, the current holder of the eu presidency. According to the proposal, a conservation zone roughly one-fourth the size of the present protected area could be maintained off Ireland's south and west coasts.