The package, dubbed Erika III after the tanker that caused an environmental catastrophe when it broke up off France in 1999, would improve respect for international shipping rules and create more competition in the industry.

With a billion tonnes of oil shipped along the European Union's coastlines each year, the chances of a repeat of the disaster remain high given lax controls on ships and the murky way the industry has long been run.

The rules would force a better ship inspection regime on the EU's 25 member states, some of whom have been badly applying existing regulations, and oblige shipping companies to have liability insurance to cover the costs of accidents.

The commission, the EU's executive arm, also wants to boost controls on ports and classification societies, which supply crucial information on the structural and mechanical fitness of ships.

"These measures will help us create a quality system of maritime defence," transport commissioner Jacques Barrot told reporters as he unveiled the package.

"Introducing stricter requirements for unscrupulous operators who distort competition, and maintaining high-performing maritime administrations and classification societies will also ensure the high quality of maritime transport," he said.

According to commission figures, the European fleet makes up a quarter of the ships plying the world's seas since the EU expanded to 25 members last year, bringing on board major shipping nations Cyprus and Malta.

Around 75 percent of the EU's exports and imports, in terms of volume, are carried out by sea -- or around 45 percent in terms of value.

At the moment, member states are only obliged to inspect 25 percent of the ships docking at their ports. Some countries, citing lack of time or staff, check only "easy vessels", usually new and in good shape, to meet their quotas.

The goal is to try to inspect them all by combing resources, with a special focus on ships carrying dangerous cargo or vessels flying flags of convenience out of countries whose regulations are considered a risk to shipping.

"All ships will be controlled," said Barrot, adding that the checks "will help us add a list of sub-standard ships to the black list of banned vessels."

Other elements of the package include the careful tracking of maritime traffic, including a demand that member states establish safe areas to where vessels in trouble will be able to seek refuge or be taken.

The damaged Liberian-flagged ship Prestige tried to approach the northwest Spanish coast three years ago but was forced out to sea by warships, only to break up and spew out tens of thousands of tonnes of oil.

"From now on the member states have to send the commission a list of ports of refuge for which we have planned special equipment," Barrot said.

Given the costs incurred by unseaworthy vessels, the commission also wants to boost controls on classification societies.

"If the work of the classification societies is not satisfactory they will be sanctioned in a gradually increasing way. This method will help us put useful pressure on them," Barrot said.

The commission's previous packages -- Erika I and II -- were adopted in 2000 and already had elements focused on such societies and improving controls at Europe's ports.

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