In addition, countries that have not introduced effective controls may be made punished with reduced fishing quotas and see their EU subsidies cut back.

Under the new rules, ships will be monitored by satellites and logs surveyed electronically to make sure that they do not overfish and bring in illegal catches.

Up until now, fines used to be so minimal that fishermen would simply include them production costs and still make a profit.

But with the new control mechanisms, "the dissuasive element is significantly strengthened so it is no longer so easy for fishers to carry out illegal activities," said EU commissioner for fisheries Joe Borg.

The agreement also mentions hobby anglers, if they are fishing threatened species such as cod in the North Sea and bluefin tuna in the Mediterranean. Their fishing activities will be monitored by national authorities to determine what impact their catches have on overall stocks.

A proposal put forward by the EU commission to include their catches in the national quotas was rejected by the bloc's 27 ministers.

Even so, the provisions were slammed by the British Conservatives."I still do not see what benefit it will bring to fish conservation by forcing a hobby angler in Stonehaven to fill out a form every time he catches a cod," Tory MEP Struan Stevenson said in a statement.

Member states also agreed to water down new obligations on smaller vessels to carry satellite surveillance equipment which could be used to ensure fishing boats are not fishing where they are not supposed to.

The European Commission wanted boats of 10m in length to carry the equipment, but this was increased to 12m, with an exemption for boats going on trips for 24 hours or less.

However, the Greens deemed the new rules too mild. "The Fisheries Council did not agree on harmonised fines for illegal activities, which means fishermen from different countries will continue to be treated inconsistently," Spanish Green MEP Raul Romeva said.

The 20 percent allowed overfishing was halved to ten percent, but Mr Romeva pointed out that even if it was reduced, it still remained "a form of legalised cheating.

The PEW environmental group estimated last year that the cost of illegal fishing to EU member states by 2020 will be €10 billion in lost catches, and €8 billion of lost fishing stock value.

"Today's decision by the Council of ministers emphasises the pressing need to reverse some of the damage done by overfishing, such as decreased fish stocks and fewer fishing jobs," Uta Bellion from Pew's EU marine programme said in a statement.

She particularly welcomed the decision to withhold subsidies from member states if they fail to apply effective control measures. "Taxpayers want to know their money is encouraging sustainable fishing rather than rewarding illegal, unregulated and unreported fishing," she said.