Britain might have to sacrifice fishing rights to persuade Europe to sign up for a major defence deal as part of Sir Keir Starmer’s Brexit “reset”. The Prime Minister is facing demands to back down on vessels accessing British waters in exchange for the military pact.

Jessica Rosencrantz, Sweden’s EU affairs minister, said it was vital to make fast progress on a formal security agreement with the UK, especially at a time of heightened tension over Ukraine. But she said EU member governments were unlikely to sign off on a security deal with the UK unless negotiations are also resolved on other “sensitive” issues, including access to British waters for European fishing fleets.

A deal on fish would also help in “building trust” between London and Brussels, she added.

“Just to be clear, I think it’s really important that the EU and UK work together on defence and security,” she told Politico.

“Obviously, there are other sensitive issues as well for many member states which also need to be resolved, fisheries being one.”

Asked if it would be possible to complete a defence pact first and then move onto negotiating fishing rights, she said: “I think we have to find a way where we can do both because we want to move ahead with the defence partnership but for many countries it’s important to solve the other sensitive issues as well.

“And therefore I think it will be important to take steps also when it comes to fisheries and other topics.”

Downing Street refused to be drawn on the remarks.

The Prime Minister’s spokesman said: “We’ve always said we’re not getting into running commentary on the talks that we’re having with the EU in relation to the reset.

“But clearly we’re pleased that countries have stepped up on defence just as the UK has.

“Clearly, we’ve set out an objective to do more on security and defence with the EU and I’m not going to get into the details of those discussions.”

EU leaders are due to travel to London for a summit in May, when an announcement could be made.

The new EU defence fund has been established in the wake of US president Donald Trump‘s threats to scrap American security guarantees for Europe and Ukraine

The €150billion fund will allow EU member states to take out loans from funds raised against the EU budget.

But, among other restrictions, it will prohibit the purchase of complex weapons systems where non-EU countries hold “design authority”.

Concerns were recently expressed in Germany that the US has the power to shut off F-35 fighter jets, which are widely used across Europe.

Ms Rosencrantz’s remarks come after Labour was urged to “stand up” to Emmanuel Macron during a blistering Brexit

Shadow Defence Secretary James Cartlidge said the French president was prioritising “fishing rights over Europe’s collective security”.

But Defence Secretary John Healey told him to “drop that Brexit rhetoric” during the exchange.

Speaking during defence questions, Mr Cartlidge highlighted the key role the UK is playing when it comes to securing peace in Ukraine.

He said: “On the potential peacekeeping force for Ukraine, we’ve heard from the Secretary of State that this is jointly British and French.

“So is therefore not extraordinary that at the very same time France should be working to undermine our defence industry by having us excluded from a £150billion European Defence Fund, which will include other non-EU states?”

Mr Healey replied: “The EU, when they produced their defence and security White Paper last week, set in place specific arrangements for any third nation like the UK that strikes a defence and security partnership with the European Union – exactly what we went to the country with as a promise to undertake as a UK Government – any country with a partnership in place then has potentially access to those sort of programmes, that sort of funding.

“That’s what we will try and negotiate for this country and our industry.”