The European Union's fisheries chief said she will decide by the end of the month whether to propose sanctions against Iceland in a row over mackerel quotas, which could see the island's fishermen banned from landing catches at EU ports.
The warning on Monday by EU fisheries commissioner Maria Damanaki came on the eve of a visit to Brussels by Prime Minister Sigmundur Gunnlaugsson, who in May suspended Iceland's bid to join the 28-nation bloc, pending a referendum.
The fishing dispute erupted in 2009 when Iceland — suffering from the collapse of its banking system during the financial crisis — massively increased its mackerel catches to cash in on an increase in stocks in its waters.