Brussels, 12/06/2006 (Agence Europe) - EU Member States are expected on 13 June to reach agreement, by qualified majority, on the 2007-2013 European Fisheries Fund. The compromise, which is expected to be reached in the Committee of Permanent Representatives, should be endorsed by Ministers on 19 June.
On 23 May, the Council failed to reach political agreement on this issue, following what the Austrian Presidency described as a minority bent on blocking a second compromise text (see EUROPE 9198). Germany, the United Kingdom and Belgium opposed the text, and Poland abstained. Reports suggest that Germany, and perhaps even the United Kingdom, will remove their objections, following slight amendments made to the compromise text submitted to the May Council.
The amended proposal put forward by the Presidency confirms the ending of aid for the construction of new vessels from 1st January 2005. The Fund should contribute to the modernisation of fishing vessels (at least five years old), subject to the current strict rules (investment to improve security on board, working conditions, the quality of the product or energy efficiency). It could also be used to help finance the replacement of engines, on condition that the new engine is less powerful than the one it replaces (20% less powerful for vessels of over twelve metres). Aid is also allowed for the destruction of vessels and the temporary cessation of fishing activities (for eight months rather than six, as at present, when the reduction is fishing effort is large).
The Commission has accepted the retention of aid, with 50% co-financing by the EU, for fishermen aged under 40 who wish to buy a second-hand vessel (vessels between 5 and 30 years old and less than 24 metres). This aid is capped at 50,000 euro or 15% of the cost of the vessel. Currently, vessels withdrawn from the fleet with state aid cannot be replaced. In a departure to this rule, the compromise allows the retention of 4% of the withdrawn tonnage capacity to be used (without State aid) for fishermen wishing to invest in their vessels. The compromise also provides for measures for productive investment in small and medium-sized aquacultural companies. This aid will also be granted to companies with fewer than 750 employees and with a turn-over of under 200 million euro.