The EU will keep open its legal action against Ireland for contravening a law on nitrates until the autumn after failing to agree to the Government's new nitrates plan.
The decision to extend the legal action has been taken as differences emerged between the two parties over the penalties that can be levied on errant farmers who break the law.
Under the draft nitrates plan Irish farmers can be fined a maximum of just €3,000 if they use too much fertiliser on their land. The European Commission is concerned this may not act as an adequate disincentive for farmers to stay within the law.
The Government, which could face millions of euro in fines from Brussels for not implementing the directive, had hoped that the commission would agree to its amended action strategy quickly.
But despite weeks of negotiations the commission confirmed yesterday it would continue its legal action at least until the autumn in the absence of a final deal on the details of the amended nitrates strategy.
An Irish official said good progress had been made in the talks, but a substantive issue remained over the penalties for non-compliance with the law.
Under the implementing legislation for EU directives in Ireland the highest possible fine is €3,000 or six months in prison. It is understood the Attorney General has now been asked to clarify if it is legally possible to increase the maximum penalties.