Lord Frost: French threats to shut UK out of EU energy market are ‘unreasonable’

He insisted the UK Government had been “extremely generous” in approving applications for EU trawlermen to operate in Britain’s coastal waters, adding: “We have granted 98 per cent of the licence applications from the EU boats.”

His intervention came after Mr Beaune said energy supplies to Britain and Jersey could be blocked – a flashpoint for further tensions over fishing – and added that they were dependent on EU supplies.

Jersey, which relies on France for 95 per cent of its electricity supply, has taken a similar decision to restrict the level of access for EU trawlermen off its coast. It issued 64 full and 31 temporary licences, but refused 75 applications.

Mr Beaune told the European 1 broadcaster that France “will not stand for this”, adding: “We defend our interests. We do it nicely and diplomatically, but when that doesn’t work, we take measures.

“For example, we can imagine, since we’re talking about energy… the United Kingdom depends on our energy supplies. It thinks it can live all alone, and bash Europe. For example, you could imagine the Channel Islands, where the United Kingdom depends on us for its energy supply.”

On Tuesday night, a UK Government source warned France against following through with its threat to cut off energy supplies to Jersey, adding that it would be seen as a significant “overreaction” and a “hostile” act.

Other sources played down the prospects of EU retaliation, telling The Telegraph most member states were “relaxed” about the UK’s announcement on fishing licences and pointing out that 98 per cent of those requested had been granted.

Despite the spat, Liz Truss, the Foreign Secretary, said the Anglo-French alliance remains as important as ever. She told a fringe event at the Conservative party conference that the two countries should continue to work together in the “global effort to improve our prosperity and security”.

The European Commission played down the prospect of retaliation and said resolving the row was a “top priority” for the bloc.

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