Explanatory Memorandum to COM(2004)497 - Proposal for a Council Regulation - European Fisheries Fund

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1. The legal basis for Community action under the common fisheries policy is Title II of the Treaty establishing the European Community, and in particular Article 37.

2. From its inception therefore the common fisheries policy has had a significant structural component. Over the past 20 years, the structural policy for fisheries has brought about a modernisation of the fisheries sector as a whole. These efforts need to be continued, particularly for the new Member States, paying particular attention to maintaining quality employment and a satisfactory level of economic viability in the sector, adapting capacity to available fisheries resources, the quest for high-quality products, the introduction of more environment- and resource-friendly techniques, not forgetting the ongoing improvement of living and working conditions.

3. The economic, social, environmental and political conditions are constantly changing. The Community instruments providing assistance will have to adapt in line with the tasks assigned to them in order to keep pace with the demands arising from changes in the fisheries and aquaculture sector, world markets, the use of new technologies, dwindling fisheries resources, the need for sustainable, environment-friendly fishing, the worsening quality of aquaculture waters, regional development policies and consumer demand.

4. In pursuing the specific objectives of the common fisheries policy, the Community has to ensure the long-term future of fishing activities and the sustainable exploitation of resources and thus to make essential structural adjustments to strike a balance between resources and fishing capacity. The Community needs to be given the means to speed up the elimination of surplus capacity and, as a number one priority, to oversee stock recovery or management plans and other emergency measures in an economically efficient and socially equitable manner.

5. The Community is to support more resolutely the development and dissemination of fishing techniques that are more compatible with the marine environment and fisheries resources, promote investment in selective fishing gear, establish boxes or any other private or joint initiatives to encourage selective fishing going beyond the obligations laid down in the Community rules.

6. The development of the aquaculture sector also represents real potential for the creation of remunerative jobs and new economic activities. The aquaculture sector should be included in a perspective for the sustainable development of quality products while at the same time ensuring that the environmental impact is reduced.

7. With a view to protecting fisheries resources, the greatest possible value should be added to catches and products, limiting all wastage and discards, by means of a modern marketing policy and the development of local processing facilities for fishery and aquaculture products. Community support for such a move aimed in particular at making the greatest possible quantity of products fit for human consumption will be targeted at micro and small enterprises.

8. In these times of great changes in the fisheries sector, steps have to be taken not only to preserve the human capital of the fishing industry, but also to acquire all the new know-how necessary to contribute to the sustainable exploitation of fisheries resources and the development of aquaculture, in particular by means of providing those engaged in the fisheries sector with suitable training throughout their working lives, bringing younger people in and promoting equal opportunities between men and women.

9. The socio-economic fabric of the coastal areas involved in fishing will be affected, and they will have to cope with the constraints arising from, among other things, changes in the fishing and aquaculture sector, developments on world markets, dwindling fisheries resources and the need to exploit natural resources and the environment in a sustainable manner, paying particular attention to the quality of fishing and aquaculture waters. The Community must be able to provide accompanying measures in conjunction with the conversion of areas affected by the restructuring of the fisheries sector. However, it will be necessary to restrict the areas eligible for this assistance: the Fund is not designed to cover all the coastal and lake areas of the Community.

10. To take greater account of the special characteristics of fishing activity, connected with the social structure of the fisheries sector and the structural and natural disparities between the various areas concerned with fishing, the European Fisheries Fund should be able to provide more direct assistance where necessary under a policy for the sustainable economic development of coastal areas, fully in line with and complementary to the other Community instruments, particularly the Funds devoted to structural change and convergence .

11. Having regard to the diversity of the situations and of the areas throughout the Community and to the principle of subsidiarity, assistance from the Fund for the development of coastal areas will have to form part of an integrated local approach centred on a relevant territorial strategy and adapted to the local situation. Its design and implementation will be as decentralised as possible, preference being given to the involvement of private actors on the ground and a bottom-up approach.

12. The European Fisheries Fund, like the FIFG, is to play a dual role in adding Community value. Firstly, as a financial instrument forming an integral part of the common fisheries policy, it is to accompany resource management measures and help adjust the structures of the production sector and the CFP monitoring tools. Secondly, it is to maintain a concern for cohesion vis-à-vis the populations and areas engaged in fishing activities.

13. As proposed here, the European Fisheries Fund will be able to play a greater role in the development and maintenance of the economic and social fabric of communities involved in fishing, for which the economic alternatives remain limited, while at the same time pursuing the objectives which the Treaty sets for the CFP.

14. The Fund will keep the same foundations and principles, as other Structural Funds, of multi-annual programming and monitoring, partnership, part-financing, subsidiarity and concentration on the least-favoured regions and those most under threat from the impact of fish stock recovery measures.

15. Each Member State will draw up a national strategic plan setting out its specific goals and priorities for Fund action, in the light of the Community strategic guidelines for the common fisheries policy. This strategic plan, which indicates the interventions and the financial contribution from the Fund and the other needed resources, will serve as a reference frame for drawing up the operational programmes.

16. To make action by the Fund more effective, the proposed approach is based on simplified instruments, with a single Regulation and a single Fund covering Community assistance. The operational programmes will also concentrate on a limited number of priorities, omitting all the technical details that might make them difficult to follow and implement.

17. The five priority axes are 'measures for the adjustment of Community fishing fleet,', 'aquaculture, processing and trade of fisheries and aquaculture products', 'measures of collective interest', 'sustainable development of fishing coastal zones' and 'technical assistance'.

18. The implementation of the Fund shall be carried out using shared management as defined in the Financial Regulation and is based on the principles of proportionality and subsidiarity. Major components of simplification and decentralisation are included in the proposal, in particular:

- The present three stage programming process is replaced by a two-stage approach, the first being strategic in nature, the second operational. In addition, the operational programmes will no longer as at present be backed up by programming complements which list the detailed measures but only establish the main priorities for assistance.

- For financial management, the payment system has been simplified and payments will be made at priority level only and no longer at measure level. Co-financing will also be determined at priority level.

- The Commission shall only require Member States to provide what is necessary for reasonable assurance of sound financial management which enables it to assume its responsibilities for implementing the Community budget. The notion of proportionality is also taken into account for the purposes of evaluation, inspection, reporting and membership of the committee.

- Eligibility rules shall be defined at national level, except for a shirt negative list. The proposal also introduces the possibilities of partial closure.

- In conclusion, the regulatory framework is radically simplified since this draft regulation shall replace or modify the provisions of current Regulations (EC) n° 1260/1999, (EC) n° 1263/1999, (EC) n° 2792/1999, (EC) n° 366/2001.

19. The financial allocation for the Fund under the Financial Perspectives proposed by the Commission for the 2007-2013 period i is EUR 4 963 million for an enlarged Europe of 27, this is roughly in line with the amount allocated for the Europe of 15 in the 2000-2006 period (EUR 3 7000 million). For the distribution of financial resources between Member States the Commission intends to apply the method based on objective criteria used at the Berlin Council in 1999 for the 'Convergence' objective by taking into account the need to show fairness to regions affected by the 'statistical effect' of enlargement. Resources allocated to regions not eligible for the Convergence objective will be allocated by the Commission between Member States on the basis of the following objective criteria, :: the size of the fisheries sector in the Member State concerned, the scale of adjustment needed to the fishing effort, the level of employment in the fisheries sector and the continuity of ongoing actions.


20. Consultation of the public and stakeholders on the future instrument for fisheries instrument 2007-2013 took place at a European conference held from 27 to 29 May 2004 in Bundoran, Donegal County, Ireland. This conference enabled some 300 participants to express their opinions. They represented not just the whole sector and competent government departments but also consumers and non-governmental organisations. The conference conclusions have where possible been included in this proposal for a Regulation.

21. The impact assessment of the proposal states that several effects are expected from EFF assistance, in particular, a contribution to the effort to achieve a balance between available resources and fishing levels, a degree of compensation for the socio-economic difficulties thrown up by the trends in activity in the sector, and the restructuring it must face, a contribution to the protection of the marine environment and to the improvement of selectivity of fishing gear, improvements to safety on board vessels, working conditions, health and product quality.