Brussels, 09/12/2008 (Agence Europe) - After two years of talks, the European Parliament and the Council of the EU reached agreement in the evening of Monday 8 December 2008 in conciliation on the third package of EU maritime legislation (ERIKA III). The European Parliament achieved two major breakthroughs vis-à-vis the financial solvency of shipping companies. On the draft directive on shipping companies in the event of accidents (one of the package's seven items of legislation that was discussed at greatest length), which transposes into EU legislation the international Athens Convention, the agreement struck on 8 December extends the directive's scope to class A and B ships (thereby increasing the Council's initial position by increasing the number of shipping routes covered by the Athens Convention). For ships of class C and D (which sail close to shore at distances of up to five nautical miles), the European Commission is invited to draft a report by 30 June 2013. The deadline for the directive to come into force is 1 January 2012, with a four-year conditional transition period for class A ships (sailing at more twenty nautical miles from the shore) or six years for class B ships (sailing more than 5 nautical miles from the shore). The directive sets caps on damages for passenger injury or death at €287,500 or €460,000 if the ship owner is directly responsible for the accident). The package also harmonises the European on board ship inspection system (draft directive on port state controls). Under the compromise, all ships entering EU ports from 1 January 2011 will be subject to inspections in line with the degree of risk (inspections every six months for high risk ships and less frequent checks for lesser risk ships). Ships will also be inspected at anchor, as desired by the European Parliament. Access to EU ports and berths shall be temporarily refused to ships that fail to comply with EU safety rules. Where an operator has had time to meet EU standards (six months, twelve months and, as requested by the Council, twenty-four months), after three consecutive rejections ships which fail to comply can be permanently banned from EU ports and berths, without any appeals being possible. It is hoped that agreement will be reached in second reading on two items of draft legislation (one on ship-owners' civil liability insurance and one on flag state obligations). (A.By trans fl)