49. In the fisheries sector, the grant of national aid closely follows the development of and the
limits imposed by the Common Fisheries Policy (CFP) thereby contributing to the realisation of common objectives. Any conclusion to be drawn from the quantification of national aid has, therefore, not only to take account of its impact on competition but also of its impact on attaining the common aim to establish the conditions necessary for ensuring the viability and future of the fisheries sector.
50. The fisheries market is therefore organised to stabilise prices and unify the Community
market. The rules of fishing provide for the best possible use of available stocks and their optimum conservation whilst ensuring relative stability of access for fishermen. In addition to these measures, durable links have been established at international level with a view to maintaining or developing access to stocks outside Community waters. Moreover, the incorporation of the structural aspect of fisheries within the framework of the Structural Funds seeks to ensure the structural adaptation necessary to attain the objectives of the common fisheries policy. This requires that action in the sector comply with the objective of establishing a balance between stocks and their exploitation. State aid is only justified, therefore, if it is in accordance with the objectives of this policy.
51. State aid rules in this sector result from the development of the Common Fisheries Policy.
The criteria and arrangements regarding Community structural assistance in the fisheries and aquaculture sector and the processing and marketing of its products have been laid
down lastly in Council Regulation 2468/9815. In parallel with the development of the
common fisheries policy, guidelines for the examination of State aid to fisheries have
been developed16. It is within the framework established by them that the Commission
administers the derogation's to the principle of incompatibility of State aid with the common market (Article 87 (1) of the EC Treaty) provided for in Article 87 (2) and (3) of the Treaty and in its implementing instruments. Given the current review of the Community’s Structural Funds, including the Financial Instrument for Fisheries Guidance (FIFG), the Guidelines will also be subject to review in future.
These rules relate to all measures entailing a financial advantage in any form whatsoever funded directly or indirectly from the budgets of public authorities (national, regional, provincial, departmental or local). State aid may be granted only if it is consistent with the objectives of the common policy. Aid may not be protective in its effect: it must serve to promote the rationalisation and efficiency of the production and marketing of fishery products in a way which encourages and accelerates the adaptation of the industry to the new situation it faces.
Consequently the following principles apply:
- State aid must not impede the application of the rules of the common fisheries policy. In particular, aid to the export of or to trade in fishery products within the Community is incompatible with the common market.
- Whenever relevant regulations allow, in particular as regards structural policy, Member States may grant State aid provided such aid complies with the objectives of the common rules so as not to jeopardise or risk distorting the full effect of these rules; this is why it must, where relevant, be included in the various programming instruments provided for under Community rules.
- State aid which is granted without imposing any obligation on the part of recipients and which is intended to improve the situation of undertakings and increase their business liquidity or is calculated on the quantity produced or marketed, product prices, units produced or the means of production, and which has the effect of reducing the recipient's production costs or improving the recipient's income is, as operating aid, incompatible with the common market. The Commission examines such aid on a case-by-case basis where it is directly linked to a restructuring plan considered to be compatible with the common market.
52. Table 16 provides an overview of the average levels of aid granted by Member States to
this sector during the two periods 1994-1996 and 1996-1998. Table 16 also presents the same figures as a percentage of value added calculated on the basis of quantities landed and average prices, whilst Table 17 shows Community intervention in favour of the Community's fishing fleet, the commercialisation, and first-stage processing of the products.
Table 16
State aid to fisheries in per cent of gross value added* in this sector, calculated on the basis of quantities landed and average prices, and absolute amounts.
Annual averages 1994 – 1996 and 1996 – 1998
In per cent of value added In million Euro 1994-1996 1996-1998 1994-1996 1996-1998 Austria - - Belgium 2,4 3,7 1,87 3,05 Denmark 2,3 2,3 9,57 9,97 Germany 7,9 9,9 15,96 16,44 Greece 0,2 4,1 0,94 13,87 Spain 3,3 2,3 64,52 44,83 Finland 14,4 7,7 3,48 2,00 France 3,5 3,7 32,62 24,53 Ireland 7,7 7,2 13,39 13,86 Italy 8,1 6,9 105,75 81,26 Luxembourg - - Netherlands 1,1 1,6 4,52 6,29 Portugal 0,8 0,9 2,43 2,53 Sweden 7,9 8,1 8,45 9,13 United Kingdom 3,3 3,6 30,16 31,96 EUR 15 4,4 3,9 293,66 259,71 Averages in 1997 prices
* Value added figures used exclude transformation industry and on-shore production.
Table 17
Community interventions in the fisheries sector in the framework of the Common organisation of the market and structural policy 1994-1998.
Million euro
1994 1995 1996 1997 1998