[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 21.12.2005

COM(2005) 677 final

2005/0262 (CNS)

Proposal for a

COUNCIL REGULATION

Denouncing the Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fisheries off Angola and derogating from Regulation (EC) No 2792/1999

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fishing off Angola[1] was signed in Luanda on 1 February 1989. The Agreement entered into force on that same date pursuant to Article 15 thereof[2].

The last Protocol annexed to the Agreement setting out, for the period from 3 August 2002 to 2 August 2004, the fishing opportunities for demersal, pelagic and tuna species and the financial contribution provided for by the Agreement[3], has not been renewed. After two rounds of formal negotiations and numerous contacts between the Commission services and the Angolan authorities, the two parties have not been able to agree on the main principles of the new Protocol. The new legislative framework adopted by Angola in October 2004 stipulates that the fishing activities subject to an Agreement between the Community and Angola shall be carried out in conformity with Angola's laws and regulations concerning fisheries. In accordance with the new Angolan Law on Biological Aquatic Resources, all fishing activities would have to be carried out in association with Angolan enterprises and the origin of the fish would have to be Angolan. In the case of tuna, the catches would be registered under ICCAT rules as Angolan catches. Furthermore, all EC vessels would have to be fitted with satellite tracking devices directly linked to the Angolan fishing vessel monitoring centre (tracking by coastal state in stead of flag state).

In these circumstances, the Commission has informed Angola in June that the negotiations have broken down, and it is considered necessary to formally denounce the Fisheries Agreement in accordance with the procedure set out in its Article 14.

The Community should give notice of the denouncement to Angola by 31 October 2007, in order that the denunciation takes effect on 1 February 2008.

A number of Community fishing vessels which used to operate under the bilateral Agreement EC/Angola are affected by this denunciation. So far, these vessels have benefited from an aid scheme for a six month tie-up which started in August 2004. This scheme has been extended by another six months, following the presentation by the Spanish authorities of a conversion plan which was approved by the Commission. To facilitate the implementation of this conversion plan, it is now proposed to waive existing obligations to pay back construction and tie-up aids for those vessels which would decide to switch to the Angolan flag, or to demonstrate continuous activity in the year preceding the deletion from the Community fleet register for those which would opt for permanent withdrawal aid.

2005/0262 (CNS)

Proposal for a

COUNCIL REGULATION

Denouncing the Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fisheries off Angola and derogating from Regulation (EC) No 2792/1999

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 36 and Article 37 in conjunction with Article 300(2) and the first subparagraph of Article 300(3) thereof,

Having regard to the proposal from the Commission[4],

Having regard to the opinion of the European Parliament[5]

Whereas:

(1) The Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fishing off Angola[6] was signed in Luanda on 1 February 1989 and entered into force on that date pursuant to Article 15 thereof[7].

(2) The last Protocol annexed to the Agreement which set out, for the period from 3 August 2002 to 2 August 2004, the fishing opportunities and the financial contribution provided for by the Agreement[8], has not been renewed since certain conditions laid down in the new legislative framework on Biological Aquatic Resources adopted by the Government of the Republic of Angola in October 2004, were incompatible with the Community’s requirements for fishing by Community fishing vessels in the waters of Angola..

(3) It is therefore appropriate to denounce that Agreement in accordance with the procedure set out in Article 14 thereof.

(4) Under Regulation (EC) No 2792/1999 of 17 December 1999 laying down the detailed rules and arrangements regarding the Community structural assistance in the fisheries sector[9] the Member States may grant compensation to fishermen and owners of vessels for the temporary cessation of activities where a fisheries agreement is not renewed, or where it is suspended, for the Community fleets dependent on the agreement. The granting of compensation may not last longer than six months. It may be extended by a further six months provided a conversion plan approved by the Commission is implemented for the fleet concerned.

(5) On 18 July 2005 the Commission adopted a Decision approving the conversion plan for fishing vessels affected by the non renewal of the fishing protocol between the European Community and the Republic of Angola within the framework of the FIFG operational programme relating to Community structural interventions in the fisheries sector for objective I regions in Spain during the 2000-2006 period.

(6) In order to facilitate the implementation of that conversion plan, Community fishing vessels covered by the plan which, as a result of this denunciation, cease their activities under the Agreement should be exempted from certain provisions of Regulation (EC) No 2792/1999. In particular, they should not be subject to the obligation to reimburse public aid for the temporary cessation of activities or for renewal, modernisation or equipment or to the obligation to demonstrate continuous activity in the year preceding their deletion from the fishing vessel register of the Community,

HAS ADOPTED THE FOLLOWING REGULATION:

Article 1

The Fisheries Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fishing off Angola signed in Luanda on 1 February 1989 is hereby denounced on behalf of the Community.

Article 2

The President of the Council is hereby authorised to designate the persons empowered to notify the Government of the Republic of Angola of the denunciation of the Fisheries Agreement referred to in Article 1.

Article 3

Community fishing vessels listed in the conversion plan approved by Commission Decision of 18 July 2005 shall not be subject to Article 10 (3)(b)(ii) or (4) of Regulation (EC) No 2792/1999 or to point 1.1.(a) of Annex III thereto.

Article 4

This Regulation shall enter into force on the seventh day following that of its publication in the Official Journal of the European Union .

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the Council

The President

LEGISLATIVE FINANCIAL STATEMENT

1. NAME OF THE PROPOSAL:

Proposal for a Council Regulation denouncing the Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fisheries off Angola and derogating from Regulation (EC) 2792/1999.

2. ABM / ABB FRAMEWORK

POLICY AREA(S) CONCERNED AND ASSOCIATED ACTIVITY/ACTIVITES:

11. Fisheries, 1103. International Fisheries Agreements

1106:.Financial Instrument for Fisheries Guidance

3. BUDGET LINES

3.1 Budget lines (operational lines and related technical and administrative assistance lines (ex- B.A lines)) including headings:

110301: “International Fisheries Agreements”

11010404: “International Fisheries Agreements, administrative expenditure”.

1106: “Financial Instrument for Fisheries Guidance”

3.2. Duration of the action and of the financial impact :

This proposal has the following impact on the Community budget in the form of expenditures or revenues:

- The denunciation of the Agreement and the non-renewal of the protocol annexed to it, will free the commitment and payment appropriations assigned to a Fisheries Agreement between the Community and Angola under the budgetary multiannual programming as from 2004. Yearly payments under the last protocol, which expired in August 2004, amounted to 15,5 mio €.

- Waivers from the obligation under the FIFG regulation[10] to pay back construction and tie-up aids would not entail, for the Community budget, any additional spending under the FIFG, because the corresponding funds have already been allocated to Spain. They would not deprive the Community budget of revenues either, because Spain would have been entitled to re-allocate such funds to alternative projects.

3.3 Budgetary characteristics ( add rows if necessary ):

Budget line | Type of expenditure | New | EFTA contribution | Contributions from applicant countries | Heading in financial perspective |

11.0301 | Comp | Diff[11] | NO | NO | NO | No 4 |

11.010404 | Comp | Non-diff[12] | NO | NO | NO | No 4 |

4. SUMMARY OF RESOURCES

4.1 Financial Resources

4.1.1 Summary of commitment appropriations (CA) and payment appropriations (PA)

EUR million (to 3 decimal places)

Expenditure type | Section no. | Min. Max. | Year n | n + 1 | N + 2 | n + 3 | n + 4 and later | Total |

Operational expenditure[13] |

Commitment Appropriations (CA)[14] | a | Min. Max. |

Payment Appropriations (PA) | b | Min. Max. |

Administrative expenditure within reference amount[15] |

Technical & administrative assistance (NDA) | c |

TOTAL REFERENCE AMOUNT |

Commitment Appropriations | A+c | Min. Max |

Payment Appropriations | B+c | Min. Max |

Administrative expenditure not included in reference amount[16] |

Human resources and associated expenditure (NDA) | d |

Administrative costs, other than human resources and associated costs, not included in reference amount (NDA) | e |

Total indicative financial cost of intervention

TOTAL CA including cost of Human Resources | A+c+d+e | Min. Max. |

TOTAL PA including cost of Human Resources | B+c+d+e | Min. Max. |

Co-financing details

EUR million (to 3 decimal places)

Co-financing body | Min. Max | Year n | n + 1 | n + 2 | n + 3 | n +4 and later | Total |

…………………… | f |

TOTAL CA including co-financing | a+c+d+e+f |

4.1.2 Compatibility with Financial Programming

X Proposal is compatible with existing financial programming.

( Proposal will entail reprogramming of the relevant heading in the financial perspective.

( Proposal may require application of the provisions of the Interinstitutional Agreement[17] (i.e. flexibility instrument or revision of the financial perspective).

4.1.3 Financial impact on Revenue

X Proposal has no financial implications on revenue

( Proposal has financial impact – the effect on revenue is as follows:

NB: All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.

EUR million (to one decimal place)

Prior to action [Year n-1] | Situation following action |

Total number of human resources | - 0.8 | - 0.8 | - 0.8 |

5. CHARACTERISTICS AND OBJECTIVES

Details of the context of the proposal are required in the Explanatory Memorandum. This section of the Legislative Financial Statement should include the following specific complementary information:

5.1. Need to be met in the short or long term

Community fishing vessels which are dependent on fishing under the Agreement between the European Economic Community and the Government of the People’s Republic of Angola on fisheries off Angola, have been obliged to cease their activities under this Agreement as a consequence of its denunciation and non renewal of the protocol attached to it. The Commission has endorsed the conversion plan drawn up by the Spanish authorities, listing the vessels affected by the non renewal of the protocol. The conversion plan may involve that vessels concerned switch to other fishing agreements or leave the Community census through scrapping or switching to another flag.

Certain provisions applicable to the granting of financial assistance under the FIFG in respect of the vessels in question may hinder their conversion in accordance with the above plan. Therefore, it is necessary to exempt these vessels from provisions such as the obligation to pay back construction aid received in the previous 10 years ( pro rata temporis) and tie-up aids. Such waivers are fully justified because the 2002 reform of the CFP removed public aid to export and joint ventures thus eliminating the risk of double funding which had motivated these obligations in the first place

5.2 Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy

Fisheries are an area falling under the exclusive competence of the Community.

As stated in its Communication on the CFP reform[19] and the communication on Fisheries Partnership Agreements, it is essential that an improved policy concerning the fisheries agreements is established together with all partners, private and public, within the Community. This position was endorsed in 2003 by the European Parliament and in July 2004 by the Council.

It appeared not to be possible to conclude a Fisheries Partnership Agreement since the Government of the Republic of Angola adopted domestic legislation ‘angolising’ fisheries in its waters.

The Community should adopt measures for the conversion of Community fishing vessels highly dependent on fishing in Angolan waters.

5.3 Objectives, expected results and related indicators of the proposal in the context of the ABM framework

The conclusion of fishery agreements with third countries responds to the general objective to maintain and safeguard traditional activities of the Community fleet. As regards Angola it appeared not possible to conclude a new agreement. Therefore, the objective of the present proposal is to denunciate the existing Agreement and to lay down certain provisions facilitating the conversion of vessels which are highly dependent on fishing in Angolan waters.

The expected result is the denunciation of the existing agreement and the conversion of the Community fishing vessels affected by the non renewal of the protocol attached to the Agreement. The indicator should consist of the conversion success of the vessels concerned.

5.4 Method of Implementation (indicative)

Show below the method(s)[20] chosen for the implementation of the action.

X Centralised Management

X Directly by the Commission

ٱ Indirectly by delegation to:

ٱ Executive Agencies

ٱ Bodies set up by the Communities as referred to in art. 185 of the Financial Regulation

ٱ National public-sector bodies/bodies with public-service mission

ٱ Shared or decentralised management

ٱ With Member states

ٱ With Third countries

ٱ Joint management with international organisations (please specify)

Relevant comments:

6. MONITORING AND EVALUATION

6.1 Monitoring system

This proposal does not comprise specific monitoring provisions. As regards to the waiver of certain provisions under the FIFG, they are subject to the extensive monitoring provisions laid down in the context of the policy governing the structural funds in general.

6.2 Evaluation

6.2.1 Ex-ante evaluation

An ex-post evaluation of the last protocol and an impact assessment of a new agreement between the Community and Angola have been drawn up by an outside consultant. These evaluations served for the elaboration of the negotiation strategy for a Fishery Partnership Agreement to be concluded between the Community and Angola.

In accordance with the new national legislation adopted by Angola, foreign vessels operating in Angolan waters must comply with a number of provisions notably requiring that each vessel is operated by an Angolan joint venture and that its catch is of Angolan origin. To this end, all foreign vessels operating in Angolan waters would have to fly the Angolan flag. As these provisions are not compatible with fishing by Community fishing vessels in Angolan waters, the negotiations on a Fishery Partnership Agreement between the Community and Angola have been suspended. Moreover, the current Agreement between Community and Angola should be denounced since it is not compatible with the new Angolan legislation.

In cooperation with the Spanish authorities the situation of the Community fleet traditionally operating in Angolan waters has been evaluated. A number of Community fishing vessels flying the Spanish flag (16) operated, exclusively or principally, in Angolan waters under the Agreement and are highly dependent on fishing in those waters. These vessels are affected by the non-renewal of the last protocol and the denunciation of the agreement. As from the expiry of the last Protocol, these vessels qualified for aid to temporary tying up which was available for 6 months. In the framework of the above mentioned conversion plan drawn up by Spain and endorsed by the Commission, these vessels qualify for an additional 6 months tie up.

The possibility for these vessels to operate under other Fishery Agreements or elsewhere is actively explored, but if no appropriate alternative fishing possibilities were found, these vessels would be immobilised. Their owners would then qualify for FIFG aid for their scrapping, and they would be demolished or made unsuitable for fishing which would result in a loss of capital and to additional spending under the Spanish share of FIFG funds.

Alternatively, vessels intending to stay in Angola in accordance with the new national legislation would have to switch to the Angolan flag. The option to stay is the most logical one in view of the development of the fishing industry in Angola and is compatible with the CFP and in particular the Guidelines for the negotiation of Fisheries Partnership Agreements[21].

The Spanish authorities are responsible for analysing the best option for the vessels concerned, within the available budgetary means from the FIFG. However, in accordance with existing FIFG provisions, the vessels concerned are no longer eligible for public support for the creation of joint enterprises. Furthermore, they would be required to pay back part of FIFG aid received for construction, modernisation and temporary tying up when abandoning the Spanish flag, which makes less attractive the option to continue operating in Angolan waters under Angolan flag and which creates the risk that certain vessels would discontinue their activities and qualify for FIFG aid for scrapping instead.

It is proposed to waive these FIFG provisions to encourage these vessels to keep operating in Angolan waters with the corresponding economic and social benefits, rather than to qualify for scrapping aid. Furthermore, as indicated above, the risk of double funding which had motivated these obligations in the first place has been removed at the same time as public aid to export and joint ventures within the framework of the 2002 reform of the CFP.

6.2.2 Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experiences in the past)

An ex-post evaluation of the last protocol and an impact assessment of a new agreement have been drawn up by an outside consultant. As the negotiations between the Parties have been suspended by the Community and the prospect on a future agreement seems inexistent, the option of “no Agreement” has become the reality. This option entails beside a loss of fishing opportunities and accordingly employment and added value generated by them conversion costs for vessels dependent on fishing in Angolan waters.

Since the interruption in the Fishery Agreement between the Community and Morocco cannot be compared in terms of size and consequences with the discontinuation of the agreement between the Community and Angola, no similar experiences are available.

6.2.3 Terms and frequency of future evaluation

The present proposal brings the agreement between the Community and Angola to an end whilst the waiver of certain FIFG provisions is specifically applicable to certain vessels which may benefit from it only for their conversion to alternative fishing opportunities. Therefore, no specific evaluation of the present proposal is foreseen.

7. ANTI-FRAUD MEASURES

NO SPECIFIC ANTI-FRAUD MEASURES ARE ENVISAGED.

8. DETAILS OF RESOURCES

8.1 Objectives of the proposal in terms of their financial cost

Commitment appropriations in EUR million (to 3 decimal places)

(Headings of Objectives, actions and outputs should be provided) | Type of output | Av. cost | Year n | Year n+1 | Year n+2 | Year n+3 and later | TOTAL |

Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 |

Officials or temporary staff[23] (XX 01 01) | A*/AD | - 0.3 | - 0.3 | - 0.3 |

B*, C*/AST | - 0.3 | - 0.3 | - 0.3 |

Staff financed[24] by art. XX 01 02 | - | - | - |

Other staff[25] financed by art. 11 01 04/05 | - 0.2 | - 0.2 | - 0.2 |

TOTAL | - 0.8 | - 0.8 | - 0.8 |

8.2.2 Description of tasks deriving from the action

( Assist the negotiator in preparing and conducting the negotiations of the fisheries agreements:

- Participate in negotiations with third countries to conclude fisheries agreements.

- Prepare Draft Assessment Reports and Strategy notes for the Commissioner.

- Present and defend the positions of the Commission in the external working group of the Council.

- Participate in finding compromises with the Member States and reflect these in the final text of the Agreements.

( Monitoring of the agreements:

- Day to day follow-up of the fisheries agreements.

- Prepare and check the commitments and the payment orders of the financial compensations and of the targeted actions

- Regular reporting of the implementation of the agreements.

- Evaluation of the agreements - scientific and technical aspects

( Policy design:

- Prepare draft Regulations and Decisions of the Council. Elaborate text of the agreements.

- Launch and follow up the approval procedures.

( Technical assistance:

- Prepare the Commission position in view of Joint Committees.

( Institutional Relations:

- Represent the Commission before the Council, European Parliament and Member States in the context of the negotiation process.

- Drafting of replies to written and oral Parliamentary questions …

( Inter-service co-ordination and consultation:

- Liaise with other Directorates General in matters concerning the negotiations and the follow-up of the agreements.

- Carry out and respond to inter-service consultations.

( Evaluation:

- Participate in the various evaluation exercises (ex-ante, mid-term, ex-post) and impact assessments.

- Analyse the attainment of objectives and quantified indicators.

8.2.3 Sources of human resources (statutory)

(When more than one source is stated, please indicate the number of posts originating from each of the sources)

X Posts currently allocated to the management of the programme to be replaced or extended

( Posts pre-allocated within the APS/PDB exercise for year n

( Posts to be requested in the next APS/PDB procedure

( Posts to be redeployed using existing resources within the managing service (internal redeployment)

( Posts required for year n although not foreseen in the APS/PDB exercise of the year in question

8.2.4 Other Administrative expenditure included in reference amount (11 01 04/05 – Expenditure on administrative management)

EUR million (to 3 decimal places)

Budget line (11 01 04 04, Heading 4) | Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 and later | TOTAL |

Other technical and administrative assistance |

- intra muros |

- extra muros | - 0.033 | - 0.033 | - 0.073 | - 0.139 |

Total Technical and administrative assistance | - 0.033 | - 0.033 | - 0.073 | - 0.139 |

8.2.5 Financial cost of human resources and associated costs not included in the reference amount

EUR million (to 3 decimal places)

Type of human resources | Year n | Year n+1 | Year n+2 | Year n+3 | Year n+4 | Year n+5 and later |

Officials and temporary staff (XX 01 01) | - 0.065 | - 0.065 | - 0.065 |

Staff financed by Art XX 01 02 (auxiliary, END, contract staff, etc.) (specify budget line) |

Total cost of Human Resources and associated costs (NOT in reference amount) | - 0.065 | - 0.065 | - 0.065 |

Calculation– Officials and Temporary agents

Reference should be made to Point 8.2.1, if applicable

1A = € 108.000* 0.3 = € 32 400

1B = € 108.000* 0.15 = € 16 200

1C = € 108.000* 0.15 = € 16 200

Sub-total: € 64 800 per year

1 ALAT = 165,000 X 0.20 = 33 000

Sub-total : € 33 000 per year

Total : € 97 800 per year

Calculation– Staff financed under art. XX 01 02

Reference should be made to Point 8.2.1, if applicable

8.2.6 Other administrative expenditure not included in reference amount EUR million (to 3 decimal places) |

XX 01 02 11 02 – Meetings & Conferences | - 0.002 | - 0.002 | - 0.002 | - 0.006 |

XX 01 02 11 03 – Committees[27] |

XX 01 02 11 04 – Studies & consultations |

XX 01 02 11 05 - Information systems |

2 Total Other Management Expenditure (XX 01 02 11) |

3 Other expenditure of an administrative nature (specify including reference to budget line) |

Total Administrative expenditure, other than human resources and associated costs (NOT included in reference amount) | - 0.012 | - 0.012 | - 0.012 | - 0.036 |

Calculation - Other administrative expenditure not included in reference amount

[1] OJ L 268 of 19.9.1987.

[2] OJ L 39 of 11.2.1989.

[3] OJ L 351 of 28.12.2002.

[4] OJ L […], […], p. […].

[5] OJ L […], […], p. […].

[6] OJ L 268 of 19.9.1987

[7] OJ L 39 of 11.2.1989

[8] OJ L 351 of 28.12.2002

[9] OJ L 337, 20.12.1999, p. 10, Regulation as last amended by Regulation (EC) No 485/2005(OJ L 81, 30.3.2005, p. 1).

[10] See Article 10 of Council Regulation (CE) n° 2792/1999 of 17 December 1999(OJ L 337 of 30.12.1999, p 10) as last amended by Council Regulation (CE) n° 485/2005 of 1 6 March of 200 5 (OJ L 81 of 30.3.2005, p. 1).

[11] Differentiated appropriations.

[12] Non-differentiated appropriations hereafter referred to as NDA.

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[15] Expenditure within chapter 11 01 other than articles 11 01 04.

[16] Expenditure within article 11 01 04 of Title 11.

[17] Expenditure within chapter 11 01 other than articles 11 01 04.

[18] See points 19 and 24 of the Interinstitutional agreement.

[19] Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years.

[20] COM(2002) 181 final of 28 May 2002.

[21] If more than one method is indicated please provide additional details in the "Relevant comments" section of this point.

[22] Guidelines adopted by the Council in July 2004.

[23] As described under Section 5.3.

[24] Cost of which is NOT covered by the reference amount.

[25] Cost of which is NOT covered by the reference amount.

[26] Cost of which is included within the reference amount.

[27] Reference should be made to the specific legislative financial statement for the Executive Agency(ies) concerned.

[28] Specify the type of committee and the group to which it belongs.