Scotland's only ferry link to the Continent could be saved thanks to a European Commission subsidy, it has emerged.
Superfast Ferries, which runs the Rosyth to Zeebrugge ferry, is to end its operations in September, blaming financial reasons.
But the EU Commission now says a new operator on the route would now be eligible for a 30 per cent subsidy.
Four ferry operators - one Scottish, two Norwegian and one Danish - are said to be interested in providing a service from Fife to the Continent.
Instead of simply running between Rosyth and Belgium, the ferry could also go to Norway, possibly also calling at Shetland on certain days.
Replacing the
Superfast Ferries service would be a major boost for hundreds of Scots holidaymakers who use the ferry every year to escape "under the bridges" to Europe, and who will otherwise have to drive to Hull next year for the nearest sea link.
Proposals to be considered under the scheme have to be submitted by the end of September. These will then be considered by the commission in December.
The subsidy would be allowable under the Motorways of the Sea scheme run by the EU, which already supports ferry services in the Mediterranean and the Baltic.
Edinburgh-based SNP MEP Alyn Smith contacted Transport Commissioner Antonio Tajani asking if the Rosyth to Zeebrugge service would qualify for the financial support. He has received a letter confirming it would.
Mr Tajani writes: "I agree with your assessment that the potential exists.
"Firstly, linking Scotland to Europe's mainland enters into one of the two objectives of the Motorways of the Sea programme to increase cohesion by connecting peripheral regions to the centre of Europe.
"Secondly, there is an undeniable potential of shift of transport away from the road."
Mr Smith said the letter was "as good a green light as you'll get" from the EU Commission and will meet officials from Forth Ports this week to discuss the issue.
He says speed is now crucial, as freight operators who have been using the
Superfast Ferries service from Rosyth are already signing up to other ferry companies sailing from Hull and the Channel ports.
Margaret Smith, Edinburgh West Liberal Democrat MSP, has been among the politicians in Holyrood calling for a replacement service. She said: "The Rosyth-Zeebrugge ferry link is vital to the surrounding economies and Scotland as a whole."
Saving the service would be a boost for Scots holidaymakers who use the ferry each year, and who would otherwise have to travel to Tyneside.
Willie Rennie, Lib Dem MP for Dunfermline and West Fife, said: "The Rosyth ferry is not only symbolically important but means jobs and value for the Fife economy. This shows that Europe can help."
Rosyth councillor Douglas Chapman added: "I'm highly delighted Alyn has taken this initiative and has had a very positive response from the European Commissioner.
"I'll be backing it all the way."
The Motorways of the Sea programme already subsidises ferries between Corsica and France, in Greece, Sweden, Finland and in Estonia.