P8_TC1-COD(2018)0210

Position of the European Parliament adopted at first reading on 4 April 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council on the European Maritime and, Fisheries and Aquaculture Fund and repealing Regulation (EU) No 508/2014 of the European Parliament and of the Council [Am. 1. This amendment applies throughout the text]

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 42, Article 43(2), Article 91(1), Article 100(2), Article 173(3), Article 175, Article 188, Article 192(1), Article 194(2), Article 195(2) and Article 349 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) It is necessary to establish a European Maritime, and Fisheries and Aquaculture Fund (EMFF EMFAF ) for the 2021-2027 period. [Am. 1. This amendment applies throughout the text.] That fund should aim to target funding from the Union budget support the implementation of the Common Fisheries Policy (CFP) and the Marine Strategy Framework Directive (MSFD) , the Union's maritime policy and the Union's international commitments in the field of ocean governance. Such funding is a key enabler for sustainable fisheries and , including the conservation of marine biological resources and habitats, for sustainable aquaculture , for food security through the supply of seafood products, for the growth of a sustainable blue economy , for prosperity and economic and social cohesion in fishing and aquaculture communities and for healthy, safe, secure, clean and sustainably managed seas and oceans. Support under the EMFAF should contribute to meeting the needs of both producers and consumers. [Am. 276]

(1a) The European Parliament underlines its position that, following the Paris Agreement, climate-related horizontal spending should be significantly increased in comparison with the current Multiannual Financial Framework (MFF) and reach 30 % as soon as possible and at the latest by 2027. [Am. 4]

(1b) On 14 March 2018 and 30 May 2018, the European Parliament stressed in its resolutions on the 2021-2027 MFF the importance of horizontal principles that should underpin the MFF 2021-2027 and all related Union policies. The European Parliament reaffirmed, in this context, its position that the Union must deliver on its commitment to be a frontrunner in implementing the UN Sustainable Development Goals (SDGs) and deplored the lack of a clear and visible commitment to that end in the MFF proposals; therefore, the European Parliament requested the mainstreaming of the SDGs into all Union policies and initiatives of the next MFF. Moreover, it reiterated that a stronger and a more ambitious Union can only be achieved if it is provided with additional financial means. The European Parliament called, therefore, for continuous support for existing policies, in particular the long-standing Union policies enshrined in the Treaties, namely the common agricultural policy and the CFP, and cohesion policy, as they provide Union citizens with tangible benefits. [Am. 5]

(1c) In its resolution of 14 March 2018, the European Parliament stressed the socioeconomic and ecological importance of the fisheries sector, the maritime environment and the ‘blue economy’ and their contribution to the sustainable food autonomy of the Union in terms of ensuring the sustainability of European aquaculture and fisheries and mitigating the environmental impact. In addition, the European Parliament called for specific amounts allocated to fisheries under the current MFF to be maintained and, to the extent that new goals for intervention in the blue economy are planned, for an increase in the financial appropriations for maritime affairs. [Am. 6]

(1d) Furthermore, in its 14 March and 30 May 2018 resolutions on the 2021-2027 MFF, the European Parliament stressed that the fight against discrimination is vital to fulfil the Union's commitments towards an inclusive Europe, and therefore that specific financial commitments for gender mainstreaming and gender equality should be included in all Union policies and initiatives in the scope of the next MFF. [Am. 7]

(1e) The EMFAF should prioritise support for small-scale fisheries to address specific issues in that segment and support local, sustainable management of the fisheries involved and the development of coastal communities. [Am. 8]

(2) As a global ocean actor and with the largest maritime area in the world when including the Outermost Regions and Overseas Countries and Territories, the Union has become the world's fifth largest producer of seafood, the Union and it has a strong responsibility to protect, conserve and sustainably use the oceans and their resources. Preserving seas and oceans is indeed vital for a rapidly growing world population. It is also of socio-economic interest for the Union: a sustainable blue economy that develops within ecological limits boosts investments, jobs and growth, fosters research and innovation and contributes to energy security through ocean energy. Moreover, safe and secure seas and oceans are essential for an efficient border control and for the global fight against maritime crime, thereby addressing citizens' security concerns. [Am. 277]

(2a) Sustainable fisheries and seawater and freshwater aquaculture contribute significantly to the Union's food security, to the maintenance and creation of rural jobs and to the preservation of the natural environment and, in particular, biodiversity. The support and the development of the fisheries and aquaculture sectors should be in the focus of the next Union fisheries policy. [Am. 10]

(3) Regulation (EU) xx/xx of the European Parliament and of the Council [Regulation laying down Common Provisions] (‘Common Provisions Regulation’) (4) has been adopted in order to improve the coordination and harmonise the implementation of support under Funds in shared management (the ‘Funds’), with the main aim of simplifying policy delivery in a coherent way. Those common provisions apply to the part of the EMFF EMFAF under shared management. The Funds pursue complementary objectives and share the same management mode. Therefore Regulation (EU) No [Regulation laying down Common Provisions] sets out a series of common general objectives and general principles such as partnership and multi-level governance. It also contains the common elements of strategic planning and programming, including provisions on the Partnership Agreement to be concluded with each Member State, and sets out a common approach to the performance orientation of the Funds. Accordingly, it includes enabling conditions, a performance review and arrangements for monitoring, reporting and evaluation. Common provisions are also set out with regard to eligibility rules, and special arrangements are defined for financial instruments, use of InvestEU, community-led local development and financial management. Some management and control arrangements are also common to all Funds. Complementarities between the Funds, including the EMFF EMFAF , and other Union programmes should be described in the Partnership Agreement, in accordance with Regulation (EU) No [Regulation laying down Common Provisions].

(4) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union apply to this Regulation. These rules are laid down in Regulation (EU) xx/xx of the European Parliament and of the Council [Regulation on the financial rules applicable to the general budget of the Union] (‘Financial Regulation’) (5) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 of the Treaty also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective Union funding.

(5) Under direct management, the EMFF EMFAF should develop synergies and complementarities with other relevant Union funds and programmes as well as synergies between Member States and regions . It should also allow financing in the form of financial instruments within blending operations implemented in accordance with Regulation (EU) xx/xx of the European Parliament and of the Council [Regulation on InvestEU] (6). [Am. 11]

(6) Support under the EMFF EMFAF should be used to address market failures or sub-optimal investment situations, in a proportionate manner, and should not duplicate or crowd out private financing or distort competition in the internal market. Support should have a clear European contributing to increased incomes from fishing, to the promotion of jobs with rights in the sector, to guaranteed fair prices for producers, to enhanced added value from fishing, and to support for the development of related activities, up- and downstream from fishing . [Am. 12]

(7) The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the priorities set for the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union]. [Am. 13]

(8) The multiannual financial framework MFF set out in Regulation (EU) xx/xx (7) provides that the Union budget must continue to support fisheries and maritime policies. The EMFF EMFAF budget should amount, in current prices, to EUR 6 140 000 000. EMFF be increased at least by 10 % with respect to the 2014-2020 EMFF. Its resources should be split between shared, direct and indirect management. EUR 5 311 000 000 87 % should be allocated to support under shared management and EUR 829 000 000 13 % to support under direct and indirect management. In order to ensure stability in particular with regard to the achievement of the objectives of the CFP, the definition of national allocations under shared management for the 2021-2027 programming period should be based on the EMFF 2014-2020 shares. Specific amounts should be reserved for the outermost regions, control and enforcement and collection and processing of data for fisheries management and scientific purposes, protection and restoration of marine and coastal biodiversity and ecosystems and marine knowledge, while amounts for permanent cessation and extraordinary temporary cessation of fishing activities and for investments in vessels should be capped. [Am. 14]

(8a) Regarding the importance of the aquaculture sector, the level of Union funds for the sector and, in particular, for freshwater aquaculture should be maintained at the level set for the current budgetary period. [Am. 15]

(9) Europe's maritime sector employs over 5 million jobs generating almost EUR 500 billion a year, with a potential to create many more jobs. The output of the global ocean economy is estimated at EUR 1,3 trillion today and this could more than double by 2030. The need to meet the Paris CO2 emissions targets, means that at least 30 % of the Union budget should be used for climate-related action. It is also necessary to increase resource efficiency and reduce the environmental footprint of the a blue economy that develops within ecological limits and which has been and must continue to be a significant driving force for innovation in other sectors such as marine equipment, shipbuilding, ocean observation, dredging, coastal protection and marine construction. Investment in the maritime economy has been provided by Union structural funds, in particular the European Regional Development Fund (ERDF) and the EMFF. New investment tools such as InvestEU must could be utilised to meet the growth potential of the sector. [Am. 16]

(9a) Investment in the blue economy should be backed by the best scientific advice available to avoid harmful effects on the environment that endanger long-term sustainability. If no suitable information or expertise for evaluating the impact of investments on the environment exists, it is advisable for both the public and private sectors to take a precautionary approach, as activities with potentially harmful effects may be carried out. [Am. 17]

(10) The EMFF EMFAF should be based on four five priorities: fostering sustainable fisheries and , including the conservation of marine biological resources ; fostering sustainable aquaculture ; contributing to food security in the Union through competitive and sustainable fisheries and aquaculture and markets and processing sectors ; enabling the growth of a sustainable blue economy , taking into account ecological carrying capacity, and fostering prosperous prosperity and economic and social cohesion in coastal and inland communities; strengthening international ocean governance and enabling safe, secure, clean and sustainably managed seas and oceans. Those priorities should be pursued through shared, direct and indirect management. [Am. 18]

(10a) The priorities could be specified with specific Union objectives to give further clarity on what the fund can be used for and to increase the efficiency of the fund. [Am. 19]

(11) The EMFF EMFAF beyond 2020 should be based on a simplified architecture without predefining measures and detailed eligibility rules at Union level in an overly prescriptive manner. Instead, broad areas of support should be described under each priority. Member States should thus draw up their programme indicating therein the most appropriate means for achieving the priorities. A variety of measures identified by the Member States in those programmes might be supported under the rules set out in this Regulation and in Regulation (EU) No [Regulation laying down Common Provisions], provided they are covered by the areas of support priorities identified in this Regulation. However, it is necessary to set out a list of ineligible operations so as to avoid detrimental impacts in terms of fisheries conservation, for example a general prohibition of on investments enhancing fishing capacity with certain duly justified derogations . Moreover, investments and compensations for the fleet should be strictly conditional on their consistency with the conservation objectives of the CFP. [Am. 20]

(12) The United nations 2030 Agenda for Sustainable Development identified conservation and sustainable use of oceans as one of the 17 Sustainable Development Goals (SDG 14). The Union is fully committed to that goal and its implementation. In that context, it has committed to promote a sustainable blue economy that develops within ecological limits which is consistent with an ecosystem-based approach to maritime spatial planning, in particular, taking into consideration the sensitivity of species and habitats to human activities at sea, the conservation of biological resources and the achievement of good environmental status, to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, to eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing and to refrain from introducing new such subsidies. This outcome should result from the World Trade Organisation fisheries subsidies negotiation. In addition, in the course of World Trade Organisation negotiations at the 2002 World Summit of Sustainable Development and at the 2012 United Nations Conference on Sustainable Development (Rio+20), the Union has committed to eliminate subsidies contributing to fisheries fleet overcapacity and overfishing. The sustainable Union fisheries and the seawater and freshwater aquaculture sectors contribute significantly to the achievement of the UN Sustainable Development Goals. [Am. 21]

(12a) The EMFAF should also contribute to the other Sustainable Development Goals (SDGs) for the United Nations. In particular, this Regulation takes into account the following goals: — SDG 1 — End Poverty: the EMFAF will contribute to improving living conditions for the most vulnerable coastal communities, in particular those that depend on a fishing resource threatened by overfishing, global changes or environmental problems. — SDG 3 — Good Health and Well-Being: the EMFAF will contribute to combating the coastal water pollution responsible for endemic diseases, and to guaranteeing good quality food from fisheries and aquaculture. — SDG 7 — Clean Energy: the EMFAF will promote the development of renewable marine energy by financing the blue economy jointly with the funds for Horizon Europe, and will ensure that this development is suitable for protecting the marine environment and preserving fishery resources. — SDG 8 — Decent Work and Economic Growth: the EMFAF will contribute to the development of the blue economy jointly with the ESF, as a factor for economic growth. It will also ensure that this economic growth is a decent source of employment for coastal communities. Furthermore, the EMFAF will contribute to improving working conditions for fishers. — SDG 12 — Responsible Consumption and Production: the EMFAF will contribute to moving towards the responsible use of natural resources and limiting natural resources and energy wastage. — SDG 13 — Climate Action: the EMFAF will provide guidance on its budget for combating climate change. [Am. 22]

(13) Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the United Nations Sustainable Development Goals, this Regulation should contribute to mainstream climate actions and to the achievement of an overall target of 25 % 30 % of the Union budget expenditures supporting climate objectives. Actions under this Regulation are expected to contribute to 30 % of the overall financial envelope of enable the EMFF EMFAF to contribute to the achievement of climate objectives , but without prejudice to the funding of the CFP, for which funding must be reassessed positively . Relevant actions , including projects aimed at protecting and restoring seagrass beds and coastal wetlands which are major carbon sinks, will be identified during the preparation and implementation of the EMFF EMFAF , and reassessed in the context of the relevant evaluations and review processes. [Am. 23]

(14) The EMFF EMFAF should contribute to the achievement of the environmental objectives of the Union having due regard to social cohesion, within the framework of the CFP and the Marine Strategy Framework Directive and should follow European environmental policy, including water quality standards guaranteeing the quality of the marine environment suitable for improving the outlook for fisheries . This contribution should be tracked through the application of Union environmental markers and reported regularly in the context of evaluations and annual performance reports. [Am. 24]

(15) In accordance with Article 42 of Regulation (EU) No 1380/2013 of the European Parliament and of the Council (‘CFP Regulation’) (8), Union financial assistance under the EMFF EMFAF should be conditional upon full compliance with the rules of the CFP and relevant Union environmental law. Union financial assistance should be granted only to those operators and Member States who fully comply with their relevant legal obligations . Applications from beneficiaries that do not comply with the applicable rules of the CFP should not be admissible. [Am. 25]

(16) In order to address the specific conditions of the CFP referred to in Regulation (EU) No 1380/2013 and to contribute to the full compliance with the rules of the CFP, provisions additional to the rules on interruption, suspension and financial corrections as set out in Regulation (EU) No [Regulation laying down Common Provisions] should be laid down. Where a Member State or a beneficiary has failed to comply with its obligations under the CFP, or where the Commission has evidence that suggests proves such a lack of compliance, the Commission should, as a precautionary measure, be allowed to interrupt payment deadlines provisionally . In addition to the possibility of interruption of the payment deadline, and in order to avoid an evident risk of paying out ineligible expenditure, the Commission should be allowed to suspend payments and impose financial corrections in cases of serious non-compliance with rules of the CFP by a Member State. [Am. 26]

(17) Much has been achieved Steps have been taken over the last few years by the CFP in towards bringing fish stocks back to healthy levels, in increasing the profitability of the Union's fishing industry and in conserving marine ecosystems. However, substantial challenges remain to fully achieve the socio-economic and environmental objectives of CFP , including the legal obligation to restore and maintain all populations of fish stocks above biomass levels capable of producing maximum sustainable yield . This requires continued support beyond 2020, notably in sea basins where progress has been slower , particularly in the most isolated ones such as outermost regions . [Am. 27]

(17a) Article 13 TFEU provides that in formulating and implementing inter alia the Union's fisheries policy, the Union and the Member States are to pay full regard to the welfare requirements of animals, since they are sentient beings, while respecting the legislative or administrative provisions and customs of the Member States relating in particular to religious rites, cultural traditions and regional heritage. [Am. 2]

(18) Fisheries are vital to the livelihood and cultural heritage of many coastal and island communities in the Union, in particular where small-scale coastal fishing plays an important role such as outermost regions . With the average age in many fishing communities being over 50, generational renewal and diversification of activities within the fisheries sector remain a challenge. It is therefore essential that the EMFAF should provide support for the attractiveness of the fisheries sector by ensuring vocational training and access for young people to careers in fishing. [Am. 28]

(18a) The implementation of co-management mechanisms in the professional and recreational fishing activity and aquaculture, with the direct participation of stakeholders involved, such as administration, the fishing and aquaculture sector, the scientific community, and civil society, which bases its functionality on an equitable distribution of responsibilities in decision making, and on adaptive management based on knowledge, information and immediacy, favours the achievement of the objectives of the CFP. The EMFAF should support the implementation of those mechanisms at local level. [Am. 29]

(19) The EMFF EMFAF should aim to achieve contribute to achieving the environmental, economic, social and employment objectives of the CFP, as defined in Article 2 of Regulation (EU) No 1380/2013. Such support should ensure that fishing activities are environmentally sustainable in the long-term and managed in a way that is consistent with the objectives of set out in Article 2(2) of Regulation (EU) No 1380/2013, which will contribute to achieving economic, social and employment benefits, and of contributing to the availability of healthy food supplies , and at the same time ensure fair labour conditions . In that regard, fisheries depending on small offshore islands should be especially recognised and supported in order to enable them to survive and prosper . [Am. 30]

(20) Support from the EMFF EMFAF should aim to achieve contribute to the timely achievement of the legal obligation to restore and maintain sustainable fishing based on the populations of all fish stocks above biomass levels capable of producing maximum sustainable yield (MSY) and to minimise , and where possible eliminate, the negative impacts of unsustainable and harmful fishing activities on the marine ecosystem. That support should include innovation and investments in low-impact, climate resilient and low-carbon fishing practices and techniques , as well as techniques aimed at selective fishing . [Am. 31]

(21) The landing obligation is a legal obligation and is one of the main challenges of the CFP. It has implied the end of the environmentally unacceptable practice of discarding as well as significant and important changes in fishing practices for the sector, sometimes with an important financial cost. It The Member States should therefore be possible for use the EMFF EMFAF to support innovation and investments that contribute to the full and timely implementation of the landing obligation, with a higher aid intensity rate than the one that applies to other operations, like investments in selective fishing gears as well as the application of temporal and spatial selectivity measures , in the improvement of port infrastructures and in the marketing of unwanted catches. It should also grant a maximum aid intensity rate of 100 % to the design, development, monitoring, evaluation and management of transparent systems for exchanging fishing opportunities between Member States (‘quota swaps’), in order to mitigate the ‘choke species’ effect caused by the landing obligation. [Am. 279]

(21a) The landing obligation should be monitored equally across the entire spectrum, from small-scale to large-scale fishing vessels, in every Member State. [Am. 33]

(22) It should be possible for the EMFF EMFAF to support innovation and investments on board fishing vessels in order to improve health, safety and working conditions, environmental protection, energy efficiency, animal welfare and the quality of catches as well as support to specific health care issues . Such support should, however, not lead to a risk of an increase of fishing capacity or ability to find fish and should not be granted simply for complying with requirements that are obligatory under Union or national law. Under the architecture with no prescriptive measures, it should be up to Member States to define the precise eligibility rules for those investments and support . With regard to health, safety and working conditions on board fishing vessels, a higher aid intensity rate than the one that applies to other operations should be allowed. [Am. 34]

(23) Fisheries control is of utmost importance for the implementation of the CFP. Therefore, the EMFF EMFAF should support under shared management the development and implementation of a Union fisheries control system as specified in Council Regulation (EC) No 1224/2009 (‘Control Regulation’) (9). Certain obligations foreseen by the revision of the Control Regulation justify a specific support from the EMFF EMFAF , i.e. the compulsory vessel tracking and electronic reporting systems in the case of small-scale coastal fishing vessels, the compulsory remote electronic monitoring systems and the compulsory continuous measurement and recording of propulsive engine power. In addition, investments by Member States in control assets could also be used for the purpose of maritime surveillance and cooperation on coastguard functions.

(24) The success of the CFP is dependent on the availability of scientific advice for the management of fisheries, and hence on the availability of data on fisheries. In the light of the challenges and costs to obtain reliable and complete data, it is necessary to support Member States' actions to collect and, process and exchange data in line with Regulation (EU) 2017/1004 of the European Parliament and of the Council (‘Data Collection Framework Regulation’) (10) and to contribute to the best available scientific advice. This support should allow synergies with the collection and, processing and exchange of other types of marine data , including data about recreational fisheries . [Am. 35]

(25) The EMFF EMFAF should support an effective knowledge-based implementation and governance of the CFP under direct and indirect management through the provision of scientific advice, the development and implementation of a Union fisheries control system, the functioning of Advisory Councils and voluntary contributions to international organisations , as well as a better commitment of the Union in international ocean governance . [Am. 36]

(26) Given the challenges to achieve the conservation objectives of the CFP, it should be possible for the EMFF EMFAF to support actions for the management of fisheries and fishing fleets. In this context, support for fleet adaptation remains sometimes necessary with regard to certain fleet segments and sea basins. Such support should be tightly targeted to the conservation and sustainable exploitation of marine biological resources and aimed to achieve balance between the fishing capacity and the available fishing opportunities. Therefore, it should be possible for the EMFF EMFAF to support the permanent cessation of fishing activities in fleet segments where the fishing capacity is not balanced with the available fishing opportunities. Such support should be a tool of the action plans for the adjustment of fleet segments with identified structural overcapacity, as provided for in Article 22(4) of Regulation (EU) No 1380/2013, and should be implemented either through the scrapping of the fishing vessel or through its decommissioning and retrofitting for other activities. Where the retrofitting would lead to an increased pressure of recreational fishing on the marine ecosystem, support should only be granted if in line with the CFP and the objectives of the relevant multiannual plans. In order to ensure the consistency of fleet structural adaptation with conservation objectives, support for the permanent cessation of fishing activities should be strictly conditional and linked to the achievement of results. It should therefore be implemented only by financing not linked to costs, as provided for in Regulation (EU) No [Regulation laying down Common Provisions]. Under that mechanism, Member States should not be reimbursed by the Commission for permanent cessation of fishing activities on the basis of real costs incurred but on the basis of the fulfilment of conditions and of the achievement of results. For this purpose, the Commission should establish in a delegated act such conditions, which should relate to the achievement of the conservation objectives of the CFP. [Am. 37]

(26a) To establish sustainable, environmentally virtuous fisheries with reduced pressure on fishing resources, the EMFAF should support the modernisation of vessels to strive towards units that use less energy, including for imbalanced segments, either through subsidies or by means of financial instruments. The EMFAF should also allow aid to young fishermen to acquire their work tool, including vessels of over 12 m, except in imbalanced segments. [Am. 38]

(26b) As fishing ports, landing sites, shelters and auction halls play an essential role in ensuring the quality of the products landed, as well as safety and working conditions, the EMFAF should as a priority support the modernisation of port infrastructures, and in particular in the marketing of fishery products, to optimise the added value of landed products. [Am. 39]

(27) Given the high level of unpredictability of fishing activities, exceptional circumstances temporary cessation may cause significant economic losses to fishers. In order to mitigate those consequences, it should be possible for the EMFF EMFAF to support a compensation for the extraordinary temporary cessation of fishing activities caused by the implementation of certain conservation measures, i.e. multiannual plans, targets for the conservation and sustainable exploitation of stocks, measures to adapt the fishing capacity of fishing vessels to available fishing opportunities and technical measures, by the implementation of emergency measures, by the interruption, due to reasons of force majeure, of the application or of non-renewal of a sustainable fisheries partnership agreement, by a natural disaster or by an environmental incident , including episodes of health closures or abnormal mortality of fishery resources, accidents at sea during fishing activities and adverse climate events . Support should be granted only if the impact on fishers of such circumstances is significant, i.e. if the commercial activities of the vessel concerned are stopped during at least 90 120 consecutive days and if the economic losses resulting from the cessation amount to more than 30 % of the average annual turnover of the business concerned during a specified period of time the last two years . The specificities of eel fisheries should be taken into account in the conditions for granting such support. [Am. 40]

(27a) It should be possible for fishermen and seawater and freshwater aquaculture producers to receive support from the EMFAF in the event of crisis in the fisheries and aquaculture markets, natural disasters or environmental incidents. [Am. 41]

(27b) In order to contribute to the positive development of water sources and to the maintenance of fishing outside the close season, the EMFAF should be able to support biological seasons, whenever these seasons, when held in certain critical phases of the species' life cycle, are necessary for the sustainable exploitation of fisheries resources. [Am. 306]

(27c) The European Parliament stresses the urgent need to support the establishment of a wage compensation fund to cover non-fishing periods and that such periods be treated as actual working time for the purposes of the retirement pension and other social security entitlements. Further, the European Parliament advocates the establishment of a minimum wage, set in accordance with local practices, negotiation and collective bargaining agreements. [Am. 307]

(28) Small-scale coastal fishing is carried out by fishing vessels below 12 metres and not using towed fishing gears. That sector represents nearly 75 % of all fishing vessels registered in the Union and nearly half of all employment in the fishery sector. Operators from small-scale coastal fisheries are particularly dependant on healthy fish stocks for their main source of income. The EMFF EMFAF should therefore give them a preferential treatment through a 100 % aid intensity rate, including for operations related to control and enforcement, with the aim of encouraging sustainable fishing practices in line with the CFP objectives . In addition, certain areas of support should be reserved for small-scale fishing in fleet segment where it being necessary to ensure that the fishing capacity is balanced with the available fishing opportunities, i.e. support for the acquisition , renovation and reclassification of a second-hand vessel and for engine replacement or modernisation as well as for young fishermen . Furthermore, Member States should include in their programme an action plan for small-scale coastal fishing, which should be monitored on the basis of indicators for which milestones and targets should be set. [Ams. 42 and 308]

(29) The outermost regions, as outlined in the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank of 24 October 2017 entitled ‘A stronger and renewed strategic partnership with the EU's outermost regions’ (11), face specific challenges linked to their remoteness, topography and climate as referred to in Article 349 of the Treaty and also have specific assets on which to develop a sustainable blue economy. Therefore, for each outermost region, an action plan for the development of sustainable blue economy sectors, including the sustainable exploitation of fisheries and aquaculture, should be attached to the programme of the concerned Member States and a financial allocation should be reserved to support the implementation of those action plans. It should also be possible for the EMFF to support a compensation of the additional costs In order to maintain the competitiveness of certain fishery and aquaculture products from the outermost regions face due to their location and insularity. compared to that of similar products from other regions of the Union, the Union introduced measures in 1992 to compensate for the related additional costs in the fisheries sector. The measures that apply for the period 2014-2020 are laid down in Regulation (EU) No 508/2014 of the European Parliament and of the Council (12) . It is necessary to continue to provide support in order to offset the additional costs for the fishing, farming, processing and marketing of certain fishery and aquaculture products from the outermost regions, so that the compensation contributes to the retaining of the economic viability of operators from those regions. In view of the different marketing conditions in the outermost regions, the fluctuations in catches and stocks and of market demands, it should be capped as a percentage of this left to the Member States concerned to determine the fishery products eligible for compensation, their respective maximum quantities and the compensation amounts, within the overall financial allocation per Member State. Member States should be authorised to differentiate the list and the quantities of fishery products concerned and the amount of compensation within the overall allocation per Member State. They should also be authorised to adjust their compensation plans if justified by changing conditions. Member States should set the compensation amount at a level which allows appropriate off-setting of additional costs, arising from the specific handicaps of the outermost regions. To avoid overcompensation, that amount should be proportionate to the additional costs that the aid off-sets. For that purpose, it should also take into account other types of public intervention having an impact on the level of additional costs . In addition, a higher aid intensity rate than the one that applies to other operations should be applied in the outermost regions. [Am. 43]

(29a) In order to ensure the survival of the small-scale coastal fisheries sector in the outermost regions and in compliance with the principles of differential treatment for small islands and territories referred to in Sustainable Development Goal (SDG) 14, it should be possible for the EMFAF to support, on the basis of Article 349 TFEU, the acquisition and the renewal of the outermost regions' small-scale coastal fishing vessels which land all their catches in ports in the outermost regions and contribute to local sustainable development, so as to increase human safety, to comply with Union hygiene standards, to fight IUU fishing and to achieve greater environmental efficiency. That fishing fleet renewal should remain within the limits of authorised capacity ceilings and should comply with the CFP objectives. It should be possible for the EMFAF to support associated measures, such as the construction or the modernisation of shipyards dedicated to small-scale coastal fishing vessels in the outermost regions, the acquisition or the renovation of infrastructures and equipment or studies. [Am. 44]

(29b) Having regard to the European Parliament resolution on the special situation of islands (2015/3014(RSP) and the European Economic and Social Committee's opinion on ‘Specific problems facing islands’ (1229/2011), agriculture, breeding and fisheries constitute an important element of local island economies. European insular regions suffer due to lack of accessibility, particularly for SMEs, a low level of product differentiation and need a strategy in order to use all possible synergies between the European Structural and Investment Funds and other Union instruments with a view to counterbalancing the handicaps of islands and enhancing their economic growth, job creation and sustainable development. While Article 174 TFEU recognises the permanent natural and geographical handicaps specific to the situation of islands, the Commission must establish a ‘Union Strategic Framework for Islands’ with a view to linking up instruments that can have a major territorial impact. [Am. 45]

(30) Under shared management, it should be possible for the EMFF EMFAF to support the protection and restoration of marine and coastal biodiversity and ecosystems. For that purpose, support should be available to compensate the collection by fishers of lost fishing gears and marine litter , in particular plastic, from the sea and for investments in ports to provide adequate reception and storage facilities for lost fishing gears and marine litter collected . Support should also be available for actions to achieve or maintain a good environmental status in the marine environment as set out in Directive 2008/56/EC of the European Parliament and of the Council (‘Maritime Strategy Framework Directive’) (13), for the implementation of spatial protection measures established pursuant to that Directive and, in accordance with the prioritised action frameworks established pursuant to Council Directive 92/43/EEC (‘Habitats Directive’) (14), for the management, restoration and monitoring of NATURA 2000 areas as well as for the protection of species under Directive 92/43/EEC and Directive 2009/147/EC of the European Parliament and of the Council (‘Birds Directive’) (15) and Directive 2000/60/EC of the European Parliament and of the Council (16) , as well as the Union standards for urban waste water and also for the construction, installation, modernization and scientific preparation and evaluation of static or movable facilities intended to protect and enhance marine fauna and flora in the outermost regions . Under direct management, the EMFF EMFAF should support the promotion of clean and healthy seas and the implementation of the European Strategy for Plastics in a Circular Economy developed in the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 16 January 2016 (17), in coherence with the objective of achieving or maintaining a good environmental status in the marine environment. [Am. 46]

(31) The United Nations 2030 Agenda for Sustainable Development identified achieve end hunger, achieve food security and improved nutrition as one of the 17 Sustainable Development Goals (SDG 2). The Union is fully committed to that goal and its implementation. In that context, fisheries and sustainable aquaculture contribute to food security and nutrition. However, the Union currently imports more than 60 % of its supply of fishery products and is therefore highly dependent on third countries. An important challenge is to encourage the consumption of fish protein fishery products produced in the Union with high quality standards and available for consumers at affordable prices supplying public institutions, such as hospitals or schools, with local small-scale fishing products and initiating training and awareness programmes in educational institutions on the importance of eating local fish . [Am. 47]

(32) It should be possible for the EMFF EMFAF to support the promotion and the sustainable development of aquaculture, including freshwater aquaculture, for the farming of aquatic animals and plants for the production of food and other raw material. Complex administrative procedures in some Member States remain in place, such as difficult access to space and burdensome licensing procedures, which make it difficult for the sector to improve the image and competitiveness of farmed products. Support should be consistent with the multiannual national strategic plans for aquaculture developed on the basis of Regulation (EU) No 1380/2013. In particular, support for environmental sustainability, productive investments, innovation, acquisition of professional skills, improvement of working conditions, compensatory measures providing critical land and nature management services should be eligible. Public health actions, aquaculture stock insurance schemes and animal health and welfare actions should also be eligible. However, in the case of productive investments Support should be provided only preferably through financial instruments and, through InvestEU, which offer a higher leverage on markets and are therefore more relevant than and through grants to address the financing challenges of the sector. [Am. 48]

(33) Food security relies on the protection of the marine environment, the sustainable management of fish stocks, efficient and well-organised markets, which improve the transparency, stability, quality and diversity of the supply chain, as well as consumer information. For that purpose, it should be possible for the EMFF EMFAF to support the marketing of fishery and aquaculture products, in line with the objectives of Regulation (EU) No 1379/2013 of the European Parliament and of the Council (‘CMO Regulation’) (18). In particular, support should be available inter alia for the creation of producer organisations including fishing cooperatives, small-scale producers , the implementation of production and marketing plans, promotion and communication campaigns, the promotion of new market outlets , conducting of studies on markets, preservation and strengthening of the European Market Observatory for Fisheries and Aquaculture products (EUMOFA) and the development and dissemination of market intelligence. [Ams. 49 and 280]

(33a) The quality and diversity of the Union's seafood products provide a competitive advantage for producers, which makes an important contribution to cultural and gastronomic heritage, reconciling the preservation of cultural traditions with the development and application of new scientific expertise. Citizens and consumers increasingly demand quality products with different specific characteristics linked to their geographic origin. For this purpose, the EMFAF will be able to support seafood products included in Regulation (EU) No 1151/2012 of the European Parliament and of the Council (19) . In particular, it will be able to support the recognition and registration of quality Geographical Indications under this Regulation. It will also be able to support the management entities for the Protected Designations of Origin (PDOs) and the Protected Geographical Indications (PGIs), as well as the programmes they develop for improving quality. Furthermore, it will be able to support the research carried out by these management entities for better awareness of the specific production facility, processes and products. [Am. 50]

(33b) Considering the European Parliament Resolution of 4 December 2008 on a ‘European Cormorant Management Plan’ and the Resolution of 17 June 2010 on a new impetus for the Strategy for the Sustainable Development of European Aquaculture, the EMFAF should support scientific research and data collection on the impact of migratory birds on the aquaculture sector and on the relevant Union fish stocks. [Am. 51]

(33c) Considering the need for a growing aquaculture sector and the important losses of fish stocks they are encountering due to migratory birds, the EMFAF should include certain compensations for these losses until a European Management plan is put in place. [Am. 52]

(34) The processing industry plays a role in the availability and quality of fishery and aquaculture products. It should be possible for the EMFF EMFAF to support targeted investments in that industry, provided they contribute to the achievement of the objectives of the CMO. Such support should may be provided only through grants, through financial instruments and through InvestEU and not through grants. [Am. 53]

(34a) Apart from the eligible measures already mentioned, it should be possible for the EMFAF to support other areas related to fisheries and aquaculture including the support for protective hunting or nuisance wildlife management of species that endanger sustainable levels of fish stocks, notably seals and cormorants. [Am. 54]

(34b) Apart from the eligible measures already mentioned, it should be possible for the EMFAF to support other areas related to fisheries and aquaculture including the compensation for damage to catches caused by mammals and birds protected by Union legislation, notably seals and cormorants. [Am. 55]

(35) Job creation in coastal regions relies on a locally driven development of a sustainable blue economy that develops within ecological limits and revives the social fabric of those regions , including the islands and outermost regions . Ocean industries and services are likely to outperform the growth of the global economy and make an important contribution to employment and growth by 2030. To be sustainable, blue growth depends on innovation and investment in new maritime businesses and in the bio-economy and in biotechnology , including sustainable tourism models, ocean-based renewable energy, innovative high-end shipbuilding and new port service and the sustainable development of the fisheries and the aquaculture sector , which can create jobs and at the same time enhance local development , as well as development of new biology-based marine products . Whilst public investment in the sustainable blue economy should be mainstreamed throughout the Union budget, the EMFF EMFAF should specifically concentrate on enabling conditions for the development of the a sustainable blue economy that develops within ecological limits and on removing bottlenecks to facilitate investment and the development of new markets and technologies or services. Support for the development of the sustainable blue economy should be delivered through shared, direct and indirect management. [Am. 56]

(35a) In accordance with Recital 3 of the CFP Regulation, recreational fisheries can have a significant impact on fish resources and Member States should therefore ensure that they are conducted in a manner that is compatible with the objectives of the CFP. However, recreational fisheries cannot be managed properly without reliable and recurring collection of recreational fisheries data as stressed by the European Parliament Resolution on the state of play on recreational fisheries in the European Union (2017/2120(INI)). [Am. 57]

(35b) The goal of a sustainable blue economy is to guarantee sustainable consumption and production, as well as efficient use of resources combined with the protection and preservation of the diversity, productivity, resilience, principal functions and intrinsic values of marine ecosystems. It is based on evaluating the long-term needs of current and future generations. This also means setting the right prices for goods and services. [Am. 58]

(35c) There is a need for support measures in order to facilitate social dialogue and to use the EMFAF to help train skilled professionals for the maritime and fisheries sector. The importance of modernising the maritime and fisheries sector and the role that innovation plays in this regard calls for reassessing the financial allocations for professional and vocational training in the EMFAF. [Am. 59]

(35d) Investment in human capital is also vital to increase the competitiveness and economic performance of fishing and maritime activities. Therefore, the EMFAF should support advisory services, cooperation between scientists and fishers, professional training, lifelong learning, and should stimulate the dissemination of knowledge, help to improve the overall performance and competitiveness of operators and promote social dialogue. In recognition of their role in fishing communities, spouses and life partners of self-employed fishers should, under certain conditions, also be granted support for professional training, lifelong learning and the dissemination of knowledge, and for networking that contributes to their professional development. [Am. 60]

(36) The development of a sustainable blue economy strongly relies on partnerships between local stakeholders that contribute to the vitality and sustainability of the populations of coastal , island and inland communities and economies. The EMFF EMFAF should provide tools to foster such partnerships. For that purpose, support for community-led local development (CLLD) should be available under shared management. That approach should boost economic diversification in a local context through the development of coastal and inland fisheries, aquaculture and a sustainable blue economy. CLLD strategies should ensure that local communities better exploit and benefit from the opportunities offered by the sustainable blue economy, capitalising on and strengthening environmental, cultural, social and human resources. Every local partnership should therefore reflect the main focus of its strategy by ensuring a balanced involvement and representation of all relevant stakeholders from the local sustainable blue economy. [Am. 61]

(37) Under shared management, it should be possible for the EMFF EMFAF to support the a sustainable blue economy that develops within ecological limits through the collection, management and use of data to improve the knowledge on the state of the marine and freshwater environment and of the resources . That support should aim to fulfil requirements under Directive 92/43/EEC and Directive 2009/147/EC, to support maritime spatial planning , the sustainability of the fisheries and the aquaculture sector and to increase data quality and sharing through the European marine observation and data network. [Am. 62]

(38) Under direct and indirect management, the EMFF EMFAF should focus on the enabling creating conditions for a sustainable blue economy that develops within ecological limits and that fosters a healthy marine environment through the promotion of an integrated governance and management of the maritime policy, the enhancement of the transfer and uptake of research, innovation and technology in the sustainable blue economy, the improvement of maritime skills, sea and ocean literacy and sharing of environmental and socio-economic data on the sustainable blue economy, the promotion of a low-carbon and climate resilient sustainable blue economy and the development of project pipelines and innovative financing instruments. Due consideration to the outermost regions' specific situation of the outermost regions and islands falling within the scope of Article 174 TFEU should be given in relation to the above mentioned fields. [Am. 63]

(39) 60 % of the oceans are beyond the borders of national jurisdiction. This implies a shared international responsibility. Most problems facing the oceans are transboundary in nature such as overexploitation, climate change, acidification, pollution and declining , oil prospecting or underwater mining, which lead to reduction of biodiversity, and therefore require a shared response. Under the United Nations Convention on the Law of the Sea, to which the Union is a Party under Council Decision 98/392/EC (20), many jurisdictional rights, institutions and specific frameworks have been set up to regulate and manage human activity in the oceans. In recent years, a global consensus has emerged that the marine environment and maritime human activities should be managed more effectively to address the increasing pressures on the oceans and seas . [Am. 64]

(40) As a global actor, the Union is strongly committed to promoting international ocean governance, in accordance with the Joint Communication to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions of 10 November 2016 entitled ‘International Ocean Governance: and agenda for the future of our oceans’ (21). The Union's ocean governance policy is a new policy that covers the oceans in an integrated manner. International ocean governance is not only core to achieve the 2030 Agenda for Sustainable Development, and in particular Sustainable Development Goal 14 (‘Conserve and sustainably use the oceans, seas and marine resources for sustainable development’), but also to guarantee safe, secure, clean and sustainably managed seas and oceans for future generations. The Union needs to deliver on those international commitments and be a driving and leading force for better international ocean governance at bilateral, regional and multilateral levels, including to prevent, deter and eliminate illegal, unreported and unregulated IUU fishing and minimise the impact on the marine environment , to improve the international ocean governance framework, to reduce pressures on oceans and seas, to create the conditions for a sustainable blue economy that develops within ecological limits and to strengthen international ocean research and data. [Am. 65]

(41) Actions promoting international ocean governance under the EMFF EMFAF are to improve the overarching framework of international and regional processes, agreements, rules and institutions to regulate and manage human activity in the oceans. The EMFF EMFAF should fund international arrangements that the Union has concluded in areas not covered by the Sustainable Fisheries Partnership Agreements (SFPAs) established with various third countries as well as the Union's legal membership contribution to regional fisheries management organisations (RFMOs). SFPAs and RFMOs will continue to be funded under different strands of the Union budget.

(42) With regard to security and defence, improved border protection and maritime security are essential. Under the European Union Maritime Security Strategy adopted by the Council of the European Union on 24 June 2014 and its Action Plan adopted on 16 December 2014, information sharing and the European Border and Coast Guard cooperation between the European Fisheries Control Agency, the European Maritime Safety Agency and the European Border and Coast Guard Agency are key to deliver on those objectives. The EMFF EMFAF should therefore support maritime surveillance and coastguard cooperation under both shared and direct management, including by purchasing items for multipurpose maritime operations. It should also allow the relevant agencies to implement support in the field of maritime surveillance and security through indirect management.

(43) Under shared management, each Member States should prepare one single programme in collaboration with all the regions that should be approved by the Commission. In the context of regionalisation and with a view to encouraging Member States to have a more strategic approach during the preparation of programmes, the Commission should develop an analysis for each sea basin indicating the common strengths and weaknesses with regard to the achievement of the objectives of the CFP. That analysis should guide both the Member States and the Commission in negotiating each programme taking into account regional challenges and needs. When assessing the programmes, the Commission should take into account the environmental and socio-economic challenges of the CFP, the socio-economic performance of the a sustainable blue economy that develops within ecological limits, particularly as regards small-scale coastal fisheries, the challenges at sea basin level, the conservation and restoration of marine ecosystems, the reduction and collection of marine litter and climate change fight, mitigation and adaptation. [Am. 66]

(43a) In order to ensure the effective implementation of the management measures at regional level, Member States should put in place a co-management scheme involving Advisory Councils, fishermen's organisations and competent institutions/authorities to strengthen dialogue and the engagement of the parties. [Am. 67]

(44) Performance of EMFF EMFAF support in Member States should be assessed on the basis of indicators. Member States should report on progress towards established milestones and targets and the Commission should carry out a performance review based on annual performance reports prepared by Member States, allowing for early detection of potential implementation issues and corrective actions. A monitoring and evaluation framework should be established for that purpose.

(44a) The payment procedure under the current EMFAF has been reported to be poor, as after four years of application only 11 % have been used. That procedure should be improved in order to accelerate payments to beneficiaries, especially as regards individuals or families. [Am. 68]

(45) Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission of 13 April 2016 on Better Law-Making (22), there is a need to evaluate the EMFF EMFAF on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can include measurable indicators, as a basis for evaluating the effects of the EMFF EMFAF on the ground.

(46) The Commission should implement information and communication actions relating to the EMFF EMFAF , and its actions and results. Financial resources allocated to the EMFF EMFAF should also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the priorities of the EMFF EMFAF .

(46a) The Commission should also provide adequate tools to inform society about fishing and aquaculture activities and the benefits of diversification of fish and seafood consumption. [Am. 69]

(47) In accordance with Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union], Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (23), Council Regulation (Euratom, EC) No 2988/95 (24), Council Regulation (Euratom, EC) No 2185/96 (25) and Council Regulation (EU) 2017/1939 (26), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities, including fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) might should carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Council Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) might should investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (27). In accordance with Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union], any person or entity receiving Union funds is to fully cooperate in the protection of the Union's financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. Member States should ensure that in the management and implementation of the EMFF EMFAF , the financial interests of the Union are protected, in accordance with Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union] and Regulation (EU) No [Regulation laying down Common Provisions]. [Am. 70]

(48) In order to enhance transparency regarding the use of Union funds and their sound financial management, in particular reinforcing public control of the money used, certain information on the operations funded under the EMFF EMFAF should be published on a website of Member State in accordance with Regulation (EU) No [Regulation laying down Common Provisions]. When a Member State publishes information on operations funded under EMFF EMFAF , the rules on the protection of personal data set out in Regulation (EU) 2016/679 of the European Parliament and of the Council (28) are to be complied with. [Am. 71]

(49) In order to supplement and amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of the identification of the threshold triggering and the length of period of time of inadmissibility with regard to the admissibility criteria of applications, the definition of conditions related to the implementation of conservation measures for financing not linked to costs with regard to the permanent cessation of fishing activities, the definition of criteria for the calculation of the additional costs resulting from the specific handicaps of the outermost regions, the definition of the cases of non-compliance by Member States which can trigger interruption of the payment deadline, the definition of the cases of serious non-compliance by Member States which can trigger suspension of payments, the definition of the criteria for establishing the level of financial corrections to be applied and the criteria for applying flat rates or extrapolated financial corrections, the amendment of Annex I and the establishment of a monitoring and evaluation framework. In order to facilitate a smooth transition from the scheme established by Regulation (EU) No 508/2014 to the scheme established by this Regulation, the power to adopt delegated acts in accordance with Article 290 of the Treaty should also be delegated to the Commission in respect of establishing transitional conditions.

(50) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred to the Commission in respect of the approval and amendment of the operational programmes, the approval and amendment of the national work plans for data collection, the suspension of payments and financial corrections.

(51) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred to the Commission in respect of the procedures, format and timetables for the submission of the national work plans for data collection and the presentation of the annual performance reports.

HAVE ADOPTED THIS REGULATION:

TITLE I

GENERAL FRAMEWORK

CHAPTER I

General provisions

Article 1 Subject-matter This Regulation establishes the European Maritime, and Fisheries and Aquaculture Fund (EMFF EMFAF ). It lays down the priorities of the EMFF EMFAF , the budget for the period 2021-2027, the forms of Union funding and the specific rules for providing such funding, complementing the general rules applying to the EMFF EMFAF under Regulation (EU) No [Regulation laying down Common Provisions].

Article 2 Geographical scope This Regulation shall apply to operations carried out in the territory of the Union, unless otherwise provided for in this Regulation.

Article 3 Definitions 1. For the purpose of this Regulation and without prejudice to paragraph 2, the definitions referred to in Article 4 of Regulation (EU) No 1380/2013, Article 5 of Regulation (EU) No 1379/2013, Article 4 of Regulation (EC) No 1224/2009 and Article 2 of Regulation (EU) No [Regulation laying down Common Provisions] shall apply. 2. For the purpose of this Regulation, the following definitions apply: (1) ‘blending operation’ means actions supported by the Union budget, including within blending facilities pursuant to Article 2(6) of Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union], combining non-repayable forms of support and/or financial instruments from the Union budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors; (2) ‘common information sharing environment’ (CISE) means an environment of systems developed to support the exchange of information between authorities involved in maritime surveillance, across sectors and borders, in order to improve their awareness of activities carried out at sea; [Am. 72] (3) ‘coastguard’ means national authorities performing coastguard functions, which encompass maritime safety, maritime security, maritime customs, prevention and suppression of trafficking and smuggling, connected maritime law enforcement, maritime border control, maritime surveillance, protection of the marine environment, search and rescue, accident and disaster response, fisheries control , inspection and other activities related to those functions; [Am. 73] (4) ‘European marine observation and data network’ (EMODnet) means a partnership assembling marine data and metadata in order to make these fragmented resources more available and usable by public and private users by offering quality-assured, interoperable and harmonised marine data; (5) ‘exploratory fishing’ means fishing for stocks that have not been subject to fishing or have not been subject to fishing by a particular gear type or technique in the previous ten years; (6) ‘fisher’ means any natural person engaging in commercial fishing activities, as recognised by the relevant Member State; (6a) ‘recreational fisheries’ means non-commercial fishing activities exploiting marine biological resources for recreation, tourism or sport; [Am. 74] (6b) ‘recreational fisheries sector’ means all segments of recreational fisheries and the businesses and jobs dependant on or generated by those fisheries; [Am. 75] (7) ‘inland fishing’ means fishing activities carried out for commercial purposes in inland waters by vessels or other devices, including those used for ice fishing; (7a) ‘on-foot fisher’ means any natural person engaging in commercial on-foot fishing activities, as recognised by the relevant Member State; [Am. 76] (8) ‘international ocean governance’ means a Union initiative to improve the overarching framework encompassing international and regional processes, agreements, arrangements, rules and institutions through a coherent cross-sectoral and rules-based approach to ensure that oceans are healthy, safe, secure, clean and sustainably managed; (9) ‘maritime policy’ means the Union policy that aims to foster integrated and coherent decision-making to maximise the sustainable development, economic growth and social cohesion of the Union, notably of the coastal and insular areas and of the outermost regions, and of the sustainable blue economy sectors, through coherent maritime-related policies and relevant international cooperation; (10) ‘maritime security and surveillance’ means the activities to understand, prevent wherever applicable and manage in a comprehensive way all the events and actions related to the maritime domain which would impact the areas of maritime safety and security, law enforcement, defence, border control, protection of the marine environment, fisheries control, trade and economic interest of the Union; (11) ‘maritime spatial planning’ means a process by which the relevant Member State's authorities analyse and organise human activities in marine areas to achieve ecological, economic and social objectives; (12) ‘productive aquaculture investments’ means investments in the construction, extension, modernisation or in the equipment of facilities for aquaculture production; [Am. 77] (13) ‘sea basin strategy’ means an integrated framework to address common marine and maritime challenges faced by Member States, and where appropriate third countries, in a specific sea basin or in one or more sub-sea basins, and promote cooperation and coordination in order to achieve economic, social and territorial cohesion; it is developed by the Commission in cooperation with the Member States and third countries concerned, their regions and other stakeholders as appropriate; [Am. 78] (14) ‘small-scale coastal fishing’ means fishing carried out by fishing vessels of an overall length of less than 12 metres and not using towed gear as listed in Article 2(1) of Council Regulation (EC) No 1967/2006 (29) , fishing on foot and shellfish gathering ; [Am. 79] (14a) ‘small-scale fleet from outermost regions’ means a small-scale fleet that operates at the outermost regions as defined in each national operational programme; [Am. 80] (15) ‘sustainable blue economy’ means all sectoral and cross-sectoral economic activities throughout the single market related to oceans, seas, coasts and inland waters, covering the Union's insular and outermost regions and landlocked countries, including emerging sectors and non-market goods and services and being , aimed at ensuring environmental, social and economic well-being for present and future generations while maintaining and restoring healthy marine ecosystems and protecting vulnerable natural resources, consistent with Union environmental legislation.; [Am. 81] (15a) ‘ co-management’ means a partnership arrangement in which government, the community of local resource users (fishers), external agents (non-governmental organisations, research institutions), and sometimes other fisheries and coastal resource stakeholders (boat owners, fish traders, credit agencies or money lenders, tourism industry, etc.) share the responsibility and authority for decision-making over the management of a fishery; [Am. 82] (15b) ‘environmental incident’ means an accidental phenomenon of natural or human origin resulting in the degradation of the environment. [Am. 83]

Article 4 Priorities The EMFF EMFAF shall contribute to the implementation of the CFP and of the maritime policy. It shall pursue the following priorities: (1) Fostering sustainable fisheries and the protection, restoration and conservation of marine biological resources; [Am. 291/rev] (1a) Fostering sustainable aquaculture; [Am. 85] (2) Contributing to food security in the Union through competitive and sustainable and socially responsible aquaculture , fisheries and markets; [Am. 291/rev] (3) Enabling the growth of a sustainable blue economy , taking into account the ecological carrying capacity, and fostering prosperous prosperity and economic and social cohesion in coastal , island and inland communities; [Am. 87] (4) Strengthening international ocean governance and enabling safe, secure, clean and sustainably managed seas and oceans. Support under the EMFF EMFAF shall also contribute to the achievement of the environmental and climate change mitigation and adaptation objectives of the Union. That contribution shall be tracked in accordance with the methodology set out in Annex IV. [Am. 88] The pursuit of those objectives shall not result in an increase in fishing capacity. [Am. 281]

Article 4a Outermost Regions All the provisions of this Regulation must take into account the specific constraints recognised in Article 349 of the Treaty on the Functioning of the European Union. [Am. 89]

CHAPTER II

Financial framework

Article 5 Budget 1. The financial envelope for the implementation of the EMFF EMFAF for the period 2021-2027 shall be EUR 6 140 000 000 increased to EUR 6 867 000 000 in 2018 constant prices (i.e. EUR 7 739 000 000 in current prices). [Am. 90] 2. The part of the financial envelope allocated to the EMFF EMFAF under Title II shall be implemented in shared management in accordance with Regulation (EU) No [Regulation laying down Common Provisions] and Article 63 of Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union]. 3. The part of the financial envelope allocated to the EMFF EMFAF under Title III shall be implemented either directly by the Commission in accordance with Article 62(1)(a) of Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union] or within the framework of indirect management in accordance with Article 62(1)(c) of that Regulation.

Article 6 Budgetary resources under shared management 1. The part of the financial envelope under shared management as specified in Title II shall be EUR 5 311 000 000 87 % of the EMFAF financial envelope [EUR xxx] in current prices in accordance with the annual breakdown set out in Annex V. [Am. 91] 2. For operations located in the outermost regions, each Member State concerned shall allocate, within its Union financial support set out in Annex V, at least: (a) EUR 102 000 000 for the Azores and Madeira; (b) EUR 82 000 000 for the Canary Islands; (c) EUR 131 000 000 for Guadeloupe, French Guiana, Martinique, Mayotte, Réunion and Saint-Martin. [Am. 92] 3. The compensation referred to in Article 21 shall not exceed 50 % of each of the allocations referred to in points (a), (b) and (c) of paragraph 2. [Am. 93] 4. At least 15 % of the Union financial support allocated per Member State shall be allocated to the areas of support referred to in Articles 19 and 20. Member States with no access to Union waters may apply a lower percentage with regard to the extent of their control and data collection tasks. Where allocations for control and data collection under Articles 19 and 20 of this Regulation are not used, the Member State concerned may transfer corresponding amounts to be used under direct management for the purposes of development and implementation, by the European Fisheries Control Agency, of a Union fisheries control system under point (b) of Article 40 of this Regulation. [Am. 94] 4a. At least 25 % of the Union financial support allocated per Member State shall be allocated to the protection and restoration of marine and coastal biodiversity and ecosystems and for marine knowledge (Articles 22 and 27). [Ams. 283 and 315] 4b. At least 10 % of the Union financial support allocated per Member State shall be allocated to improving the safety, working and living conditions of the crew, training, social dialogue, skills and employment. However, the Union financial support from the EMFAF allocated per Member State for all investments on board shall not exceed 60 % of the Union financial support allocated per Member State. [Am. 96] 5. The Union financial support from the EMFF EMFAF allocated per Member State to the areas of support referred to in Articles 17(2) and 18 shall not exceed the higher of the following two thresholds: (a) EUR 6 000 000; or (b) 10 % 15 % of the Union financial support allocated per Member State. [Am. 97] 6. In accordance with Articles 30 to 32 of Regulation (EU) No [Regulation laying down Common Provisions], the EMFF EMFAF may support technical assistance for the effective administration and use of this Fund at the initiative of a Member State.

Article 7 Financial distribution for shared management The resources available for commitments by Member States referred to in Article 6(1) for the period from 2021 to 2027 are set out in the table in Annex V.

Article 8 Budgetary resources under direct and indirect management 1. The part of the financial envelope under direct and indirect management as specified in Title III shall be EUR 829 000 000 13 % of the EMFAF financial envelope [EUR xxx] in current prices. [Am. 98] 2. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the EMFF EMFAF , such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems. In particular, the EMFF EMFAF may support, at the initiative of the Commission and subject to the ceiling of 1,7 % of the financial envelope referred to in Article 5(1): (a) technical assistance for the implementation of this Regulation as referred to in Article 29 of Regulation (EU) No [Regulation laying down Common Provisions]; (b) the preparation, monitoring and evaluation of sustainable fisheries partnership agreements and the Union participation in regional fisheries management organisations; (c) the setting-up of a European network of local action groups. 3. The EMFF EMFAF shall support the costs of information and communication activities linked to the implementation of this Regulation.

CHAPTER III

Programming

Article 9 Programming for support under shared management 1. In accordance with Article 16 of Regulation (EU) No [Regulation laying down Common Provisions], each Member State shall prepare a single national programme or regional operational programmes to implement the priorities referred to in Article 4. [Am. 99] 2. Support under Title II shall be organised along the areas of support set out in Annex II. 3. In addition to the elements referred to in Article 17 of Regulation (EU) No [Regulation laying down Common Provisions], the programme shall include: (a) an analysis of the situation in terms of strengths, weaknesses, opportunities and threats and the identification of the needs that require to be addressed in the relevant geographical area, including, where appropriate, sea basins covered by the programme; (b) the action plan for small-scale coastal fishing referred to in Article 15; (c) where applicable, the action plans for the outermost regions referred to in paragraph 4 Article 29c ; [Am. 100] (ca) where appropriate, sea-basin action plans for subnational or regional authorities responsible for fisheries, shellfish and maritime affairs. [Am. 101] 4. Member States concerned shall prepare as part of their programme an action plan for each of their outermost regions referred to in Article 6(2), which shall set out: (a) a strategy for the sustainable exploitation of fisheries and the development of sustainable blue economy sectors; (b) a description of the main actions envisaged and the corresponding financial means, including: (i) the structural support to the fishery and aquaculture sector under Title II; (ii) the compensation for additional costs referred to in Article 21; (iii) any other investment in the sustainable blue economy necessary to achieve a sustainable coastal development. [Am. 102] 5. The Commission , after obtaining the opinions of the relevant Advisory Councils, shall develop an analysis for each sea basin indicating the common strengths and weaknesses of the sea basin with regard to the achievement of the objectives of the CFP, as referred to in Article 2 of Regulation (EU) No 1380/2013 , and the achievement of good environmental status, as referred to in Directive 2008/56/EC . Where applicable, This analysis shall take into account the existing sea basin and macro-regional strategies. [Am. 103] 6. The Commission shall assess the programme in accordance with Article 18 of Regulation (EU) No [Regulation laying down Common Provisions]. In its assessment it shall take into account, in particular: (a) the maximisation of the contribution of the programme to the priorities referred to in Article 4; (b) the balance between the fishing capacity of the fleets and the available fishing opportunities, as reported annually by Member States according to Article 22(2) of Regulation (EU) No 1380/2013; (ba) where applicable, the need to modernise or to renew the fleets; [Am. 104] (c) where applicable, the multiannual management plans adopted under Articles 9 and 10 of Regulation (EU) No 1380/2013, the management plans adopted under Article 19 of Council Regulation (EC) No 1967/2006 and the recommendations from regional fisheries management organisations, where applicable to the Union; (d) the implementation of the landing obligation referred to in Article 15 of Regulation (EU) No 1380/2013; (da) control of invasive species that cause considerable damage to the productivity of fisheries; [Am. 105] (db) support for research into and use of innovative selective fishing gear throughout the Union, not only but including in accordance with Article 27 of Regulation (EU) No 1380/2013; [Am. 106] (e) the most recent evidence on the balance between the environmental priorities and the socio-economic performance of the sustainable blue economy, and in particular the fishery and aquaculture sector; [Am. 107] (f) where applicable, the analyses referred to in paragraph 5; (g) the contribution of the programme to bringing about a balance between the economic and social considerations and the conservation and restoration of marine and freshwater ecosystems, while the support related to Natura 2000 areas shall be in accordance with the prioritised action frameworks established pursuant to Article 8(4) of Directive 92/43/EEC; [Am. 108] (h) the contribution of the programme to the collection and reduction of marine litter, in accordance with Directive xx/xx of the European Parliament and of the Council [Directive on the reduction of the impact of certain plastic products on the environment] (30); [Am. 109] (i) the contribution of the programme to climate change fight, mitigation and adaptation , including by reducing CO2 emissions by means of fuel savings ; [Am. 110] (ia) the contribution of the programme to tackling IUU fishing. [Am. 111] 7. Subject to Article 18 of Regulation (EU) No [Regulation laying down Common Provisions], the Commission shall adopt implementing acts approving the programme. The Commission shall approve the proposed programme provided the necessary information has been submitted. 8. Subject to Article 19 of Regulation (EU) No [Regulation laying down Common Provisions], the Commission shall adopt implementing acts approving amendments to a programme.

Article 10 Programming for support under direct and indirect management Titles III shall be implemented through work programmes referred to in Article 110 of Regulation (EU) No [Regulation on the financial rules applicable to the general budget of the Union]. Work programmes shall set out, where applicable, the overall amount reserved for the blending operations referred to in Article 47.

TITLE II

SUPPORT UNDER SHARED MANAGEMENT

CHAPTER I

General principles of support

Article 11 State aid 1. Without prejudice to paragraph 2, Articles 107, 108 and 109 of the Treaty shall apply to aid granted by Member States to undertakings in the fishery and aquaculture sector. 2. However, Articles 107, 108 and 109 of the Treaty shall not apply to payments made by Member States pursuant to this Regulation and falling within the scope of Article 42 of the Treaty. 3. National provisions setting up public financing going beyond the provisions of this Regulation concerning payments referred to in paragraph 2 shall be treated as a whole on the basis of paragraph 1.

Article 12 Admissibility of applications 1. An application submitted by a beneficiary an applicant for support from the EMFF EMFAF shall be inadmissible for an identified period of time laid down pursuant to paragraph 4, if it has been determined by the competent authority that the beneficiary applicant concerned: [Am. 112] (a) has committed serious infringements under Article 42 of Council Regulation (EC) No 1005/2008 (31) or Article 90 of Council Regulation (EC) No 1224/2009 or under other legislation adopted by the European Parliament and by the Council within the framework of the CFP and Union environmental legislation ; [Am. 317] (b) has been involved in the operation, management or ownership of fishing vessels included in the Union IUU vessel list as set out in Article 40(3) of Regulation (EC) No 1005/2008, or of a vessel flagged to countries identified as non-cooperating third countries as set out in Article 33 of that Regulation; or (c) has committed any of the environmental offences set out in Articles 3 and 4 of Directive 2008/99/EC of the European Parliament and of the Council (32) , where the application is made for support under Article 23. [Am. 114] 2. The beneficiary, after submitting the application, shall continue to comply with the admissibility conditions referred to in paragraph 1 throughout the period of implementation of the operation and for a period of five two years after the final payment to that beneficiary. [Am. 115] 3. Without prejudice to more far-reaching national rules as agreed on in the Partnership Agreement with the Member State concerned, an application submitted by a beneficiary shall be inadmissible for an identified period of time laid down pursuant to paragraph 4, if it has been determined by the competent authority that the beneficiary has committed a fraud, as defined in Article 3 of Directive 2017/1371/EU of the European Parliament and of the Council (33). 4. The Commission shall be empowered to adopt delegated acts in accordance with Article 52 concerning: (a) the identification of the threshold triggering and the length of period of time of inadmissibility referred to in paragraphs 1 and 3, which shall be proportionate to the nature, gravity, duration and repetition of the serious infringements, offences or fraud, and shall be of at least one year's duration; (aa) any conditions under which the duration of the period of ineligibility is reduced; [Am. 116] (ab) the definition of the conditions to be complied with after the submission of the request referred to in paragraph 2 and the arrangements for recovering the aid granted in the event of non-compliance, to be scaled according to the seriousness of the infringement committed; [Am. 117] (b) the relevant starting or ending dates of the period of time referred to in paragraphs 1 and 3. 5. Member States shall require that beneficiaries submitting an application under the EMFF EMFAF provide to the managing authority a signed statement confirming that they respect the criteria listed in paragraphs 1 and 3. Member States shall verify the veracity of that statement before approving the operation, based on the information available in the national registers of infringements referred to in Article 93 of Regulation (EC) No 1224/2009, or any other available data. For the purposes of the verification referred to in the first subparagraph, a Member State shall provide, on request from another Member State, the information contained in its national register of infringements referred to in Article 93 of Regulation (EC) No 1224/2009. 5a. Member States may apply the inadmissibility period also to applications submitted by fishers in inland waters who have committed serious infringements as defined by national rules. [Am. 118]

Article 12a Eligible operations A variety of operations identified by the Member States in their programmes may be supported by the EMFAF, provided that they are covered by one or more of the priorities identified in this Regulation. [Am. 119]

Article 13 Ineligible operations The following operations shall not be eligible under the EMFF EMFAF : (a) operations that increase the fishing capacity of a fishing vessel or support the acquisition of equipment that increases the ability of a fishing vessel to find fish , except for the purpose of improving the safety or the working or living conditions of the crew which includes corrections to vessel stability, or the quality of the product, provided that the increase is within the limit allocated to the Member State concerned, without jeopardising the balance between fishing capacity and available fishing opportunities and without increasing the ability of the fishing vessel concerned to catch fish ; [Am. 120] (b) the construction and acquisition of fishing vessels or the importation of fishing vessels, unless otherwise provided for in this Regulation; (c) the transfer or reflagging of fishing vessels to third countries including through the creation of joint ventures with partners of those countries; (d) the temporary or permanent cessation of fishing activities, unless otherwise provided for in this Regulation; (e) exploratory fishing; (f) the transfer of ownership of a business , except for the transfer of an undertaking to young fishermen or young aquaculture producers ; [Am. 121] (g) direct restocking, except explicitly provided for as a conservation measure by a Union legal act or in the cases of experimental restocking or restocking associated with processes to improve the environmental and production conditions of the natural environment ; [Am. 122] (h) the construction of new ports, or new landing sites or new auction halls except for small ports and landing sites in remote areas, particularly in the outermost regions, on remote islands and in peripheral and non-urban coastal areas ; [Am. 123] (i) market intervention mechanisms aiming to temporarily or permanently withdraw fishery or aquaculture products from the market with a view to reducing supply in order to prevent price decline or drive up prices; by extension, storage operations in a logistics chain that would produce the same effects either intentionally or unintentionally; [Am. 124] (j) except where otherwise provided for in this Regulation, investments on board fishing vessels necessary to comply with the requirements under Union or national law, including requirements under the Union's obligations in the context of regional fisheries management organisations , unless those investments lead to disproportionate costs for the operators ; [Am. 125] (k) investments on board fishing vessels that have carried out activities at sea for less than 60 days in each of the two calendar years preceding the year of submission of the application for support. [Am. 126] (ka) the replacement or modernisation of the main or auxiliary engine of a fishing vessel if it results in an increase in power in Kw; [Am. 127] (kb) the production of genetically modified organisms where such production may adversely affect the natural environment. [Am. 128]

Article 13a Support for operations for the management of fisheries and fishing fleets The EMFAF may support operations for the management of fisheries and fishing fleets in accordance with the entry/exit scheme referred to in Article 23 of Regulation (EU) No 1380/2013 and with the fishing capacity ceilings established in Annex II to that Regulation. In particular, Member States shall endeavour to optimise the allocation of their available fishing capacity, taking into account the needs of their fleet, without increasing their overall fishing capacity . [Am. 323]

CHAPTER II

Priority 1: Fostering sustainable fisheries and, the conservation of marine biological resources and the socio-economic stability [Am. 129]

Section 1

General conditions

Article 14 General scope of support 1. Support under this Chapter shall contribute to the achievement of the environmental, economic, social and employment objectives of the CFP, as set out in Article 2 of Regulation (EU) No 1380/2013 , and will foster social dialogue between the parties . [Am. 130] 2. Where support under this Chapter is granted for a vessel, that vessel shall not be transferred or reflagged outside the Union during at least the five years from the final payment for the supported operation. 3. Support under this Chapter shall also apply to inland fishing, with the exception of Articles 15 and 17.

SECTION 2

SMALL-SCALE COASTAL FISHING

Article 15 Action plan for small-scale coastal fishing 1. Member States shall prepare as part of their programme an , and in due collaboration with the relevant sectors, a specific action plan for small-scale coastal fishing which shall set out a strategy for the development of profitable and sustainable small-scale coastal fishing. This strategy shall be structured along the following sections, where applicable: [Am. 131] (a) adjustment and management of fishing capacity; (b) promotion of low-impact, climate resilient and low-carbon fishing practices that minimize damage to the marine environment; (c) reinforcement of the value chain of the sector and promotion of marketing strategies , promoting any mechanisms that improve first-sale price, in order to benefit fishers by increasing their reward for their work, and that promote fair and appropriate distribution of value added throughout the sector's value chain, reducing intermediaries' margins, increasing the prices paid to producers and restricting the prices paid by end-consumers; [Am. 311] (d) promotion of skills, knowledge, innovation and capacity building , in particular for young fishers ; [Am. 132] (e) improvement of health, safety and working conditions on board fishing vessels , in fishing on foot and shellfish gathering, as well as on-shore in direct fishing-related activities ; [Am. 133] (f) increased compliance with data collection, traceability, monitoring, control and surveillance requirements; (g) involvement in the participatory management of the maritime space, including Marine Protected Areas and Natura 2000 areas; (h) diversification of activities in the broader sustainable blue economy; (i) collective organisation and participation in the decision-making and advisory processes. 2. The action plan shall take into account the FAO voluntary guidelines for securing sustainable small-scale fisheries and, where appropriate, the regional plan of action for small-scale fisheries from the General Fisheries Commission for the Mediterranean. 3. For the purpose of monitoring the implementation of the strategy referred to in paragraph 1, the action plan shall establish specific milestones and targets linked to relevant indicators established under the monitoring and evaluation framework referred to in Article 37. 3a. In order to alleviate the administrative burden on operators applying for aid, Member States shall endeavour introducing a single Union simplified application form for EMFAF measures. [Am. 134]

Article 16 Investments in small-scale coastal fishing vessels 1. The EMFF EMFAF may support the following investments in respect of small-scale coastal fishing vessels which belong to a fleet segment for which the latest report on fishing capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown a balance with the fishing opportunities available to that segment: (a) the first acquisition of a fishing vessel by a young fisher who, at the moment of submitting the application, is under 40 years of age and has worked a least five years as fisher or has acquired adequate vocational qualification; (aa) the reclassification, renewal and resizing of vessels, when they are clearly obsolete, making it possible to improve fishing conditions and increase periods spent out at sea. [Am. 312] (b) the replacement or modernisation of a main or ancillary engine. (ba) the facilitation of access to credit, insurance and financial instruments. [Am. 136] 2. The vessels referred to in paragraph 1 shall be equipped for sea fishing and be between 5 and 30 years old. [Am. 137] 3. The support referred to in paragraph 1(b) may only be granted under the following conditions: (a) the new or modernised engine shall not have more power in kW than the current engine; (b) any reduction of fishing capacity in kW due to the replacement or modernisation of a main or ancillary engine shall be permanently removed from the Union fleet register; (c) the engine power of the f