EC package proposed to tackle fuel crisis

The measures proposed are to promote the restructuring of those segments of the European fishing fleet hardest hit by the crisis, while cushioning short-term impacts for those who commit to take long-term action.

The core of the proposal consists of a regime of temporary derogations to the European Fisheries Fund (EFF), allowing funds to be targeted quickly where they are needed the most.

European Commissioner for Maritime Affairs and Fisheries Joe Borg said: "High fuel prices and chronic overcapacity mean that European fisheries are in a time of crisis. The Commission recognises the need to help the sector adjust to the new realities. That is why the action the Commission is proposing rests on three main principles: that we must focus aid on reducing overcapacity, on reducing fuel dependency, and on market measures which can help fishermen raise the first-sale value of their fish. Only in this way can we help establish a truly sustainable future for the industry."

He continued: "The current crisis is very painful for those sections of the EU fishing industry where fuel makes up a large part of costs – sometimes, as much as 60% of revenues. However, first sale fish prices have stagnated for the last decade and hence fishermen have not been able to pass their cost increases down the chain."

The package proposed incorporates:

• Emergency measures, consisting principally of temporary cessation aid, to help fishermen cope with short-term pressures while the sector prepares a longer-term strategy.

• A whole new range of restructuring measures for fleet segments which sign up to Fleet Adaptation Schemes, to be adopted at national level.

• Horizontal measures which fall outside the Fleet Adaptation Schemes, including increased EFF aid-intensity for fuel-saving equipment, expertise in relation to energy audits and restructuring plans, expanding the rank of beneficiaries eligible for early retirement under the EFF, and promoting research on fuel-saving technologies.

• Market measures under both the EFF and the Common Organisation of the Market, including a new price-monitoring observatory, and additional financial support for stakeholder-led initiatives.

• Measures designed to facilitate the use of the EFF, so as to ensure fast and targeted action by Member States.

In addition, the Communication also examines possible changes to the de minimis rules for the fisheries sector, social aid in the form of decreased social security contributions, and the scope for additional funding outside of the EFF.

The EU financing tool for realising the strategy will be the EFF. In addition to the EFF the Commission has pledged up to another €600 million to fund this temporary specific action to help the fishing industry to adapt to high fuel prices.

At the time of going to press, the Commission said that it anticipates that the Council of Ministers will be able to discuss the package adopted in the course of the month of July, with a view to ensuring its rapid entry into force.