Commission authorises some French fishery aids, rejects others

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IP/04/962
Brussels, 20 July 2004
Commission authorises some French fishery aids,
rejects others
The European Commission has authorised certain aids granted by France (in
the form of reductions in social security contributions and other charges)
following the oil pollution caused by shipwreck of the Erika in December
1999 and a violent storm just afterwards. It considers the aids justified as far
as the fish farmers on the Atlantic coast particularly affected by the events
are concerned but for other fish farmers, and also for fishermen, it has found
them incompatible with the common market and they will have to be
recovered. It has also authorised certain fishery aids granted in Corsica
between 1986 and 1999 but those for vessel construction and vessel
modernisation with an increase in power granted between 1 January 1997
and 28 October 1998 have been found incompatible with the common market
and must also be recovered. New aids for purchasing second-hand vessels
were however authorised.
The Erika and the storm of December 1999
The combination of these events severely affected fishing and aquaculture on the
Atlantic coast. In 2001 the Commission authorised certain aids compensating
mollusc farmers and fishermen who had suffered losses but opened an investigation
into other French aids. The present decision relates to these.
The assistance granted to aquaculturists located on the Atlantic coast was found
compatible with the common market but for others, including those in the Overseas
Departments, two of the aid measures (reduction in social security contributions,
exemption from certain other charges) were found incompatible. Although the black
tide that followed shipwreck of the Erika did lead to a slump in the market for
molluscs, the producers’ losses (a 2.7% fall in average annual turnover) could not be
considered exceptional.
For fishery products the information gathered by the Commission showed that there
was no market slump. Authorisation was therefore refused for the aid (exemption
from social security contributions) granted to fishermen on that ground.
Fishery aids for Corsica
Most of the fishery aids granted in Corsica between 1986 and 1999 (for purchase of
new and second-hand vessels, modernisation of vessels with no increase in power,
equipment for use on land by fishermen and aquaculturists, etc.) was found to be
compatible with the common market, but authorisation was refused for aid for
purchase of new vessels and modernisation of vessels with an increase in power
during the period 1 January 1997 to 28 October 1998.
Aid of this type had been forbidden for the French fleet in that period owing to
France's failure to respect the fleet management rules in the MAGP III (fleet
orientation programme with compulsory minimum capacity reductions set in advance
for the Member States’ fleets).
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