login
login
Image header Agence Europe
Europe Daily Bulletin No. 7961
Contents Publication in full By article 19 / 61
GENERAL NEWS / (eu) eu/fisheries

Commission opens inquiry into State aid in the Netherlands and in Italy

Brussels, 09/05/2001 (Agence Europe) - On Tuesday, the Commission formally opened an investigation into Dutch and Italian aid schemes intended to compensate the fishing industry for losses due to the rise in fuel prices last year. After a preliminary assessment of these schemes, the Commission expresses doubt about their compatibility with the Community rules on State aid. State aid in Italy consists in compensatory measures and reductions in social contributions and taxation, while those granted by the Dutch government concern the reimbursement of social contributions paid in 2000.

The Commission considers that the Dutch and Italian schemes have the characteristics of operational aid which are not compatible with the competition rules of the single market. The Commission also reproaches these countries for not having provided information likely to justify an exception to Community legislation.

The Italian aid scheme relates to three types of measures: the allocation of financial compensation according to the engine power of the vessels, rebates on social contributions and rebates on tax paid. The financial compensation (EUR 21.2 million) applies to all fishing vessels. The measures relating to reductions are an extension of an existing scheme in favour of larger vessels to boats which operate within the 20-mile coastal band, for a period of two months. The scheme is already in application for vessels operating in the Mediterranean at more than 20 miles off the Italian coast (the scheme was notified to the Commission in 1998 and was considered compatible with the rules of the common market).

The Netherlands informed the Commission of its intention to allocate financial compensation to all share fishermen (this represents almost all Dutch fishermen, the exception being those on board large pelagic vessels), with a view to covering last year's social contributions expenditure. The amount of compensation to fishermen cannot exceed the amount they paid, up to a maximum of 2,677 euros per fisherman. The Netherlands plans to allocate a budget of EUR 5.45 million for this measure.

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
ECONOMIC INTERPENETRATION