Brussels, 30/10/2003 (Agence Europe) - As we announced in EUROPE of 28 October (p.11), the European Commission adopted its new guidelines on Wednesday on State aid in the maritime transport sector, to replace the 1997 ones. Overall, the guidelines follow the same approach as the previous ones, but they contain new provisions for sailors and maritime transport over short distances.
The objective of these guidelines is to allow Member States to grant aid to European shipping companies (tax regime on tonnage, reduction of social and tax contribution for ship-builders and sailors, aid for training) on the condition that they observe social, environmental and safety standards. The aim is to protect the jobs of European seafarers and boost the world-level competitiveness of the European fleet, which has been badly affected by international competition, and the "flag of convenience". Having looked at how the sector has progressed since 1997, the Commission has noted improvements and decided to keep the proposed measures. In its communication, which was adopted on Wednesday, it does, however, plan new provisions: - reduction in tax and social costs will apply from now on to all seafarers, regardless of nationality or country of residence. However, only EU and EEA (European Economic Area) sailors will benefit from these measures, as they concern vessels providing regular passenger transport and ferry services between Community ports; - start-up aid for short-distance maritime transport services between ports in EU territory can be granted in the future, under certain conditions (not exceeding three years, and enabling transports which would otherwise have to be transported by road to be transported by sea).
The communication also clarifies the principle of the "link with the flag": to be eligible for an aid regime (such as reduction in tax), a shipping company must have a link with the Community flag. However, in the cases of a fleet made up of vessels flying the flag of the Community and of a third country, and carrying under 60% of its tonnage under the EU flag, before authorising an aid regime (such as tonnage-based taxation), Member States must ensure that the companies commit at least to keeping, under the Community flag, the proportion of tonnage that was under that flag when the communication enters into force. In the opposite case, vessels used by this company under a non-Community flag will not be eligible for any tax reduction. Exemptions will be possible if the Member States are able to prove that the companies in question are fulfilling certain conditions.
Loyola de Palacio: Provide European maritime sector with chance to compete with tax havens
On Thursday, the Commissioner responsible for Transport, Loyola de Palacio, explained, in a few figures, the state of European maritime transport: 90% of total trade between the Community and the rest of the world is undertaken through maritime routes, while 69% of the volume of goods transported between the member states is done by sea. With enlargement, and in particular the accession of Malta and Cyprus, which represent 10% of world tonnage, 30% of the world fleet will fly the European flag, noted Mrs de Palacio. According to the Communication adopted on Wednesday, the number of sailors' onboard ships flying the Community flag fell from 188,000 in 1996 to roughly 180,000 in 2001. The total number of EU nationals employed onboard EU ships rose by 29,000 in 1983 to around 60,000 at present. Improvements have been seen thanks to measures taken by member states following the 1997 guidelines. However, the European fleet, (and Community sailors), continue to suffer from competition with ships and sailors from third countries with fewer requirements in terms of social, environmental and safety standards. This is why it is necessary to continue offering full support to the European maritime sector to ensure the sector's survival and also to guarantee better safety, stated Mrs de Palacio, while noting that according to statistics, the European fleet is the safest and most compliant towards environmental standards. New measures should provide the EU with a chance of competing with tax havens, she hoped.