Proposal for a Council Regulation amending Council Regulation (EC) No 2561/2001 aiming to promote the conversion of fishing vessels and of fishermen that were, up to 1999, dependent on the fishing agreement with Morocco
Date: 2003-07-24
Institutions: European Commission
Subjects: derogation from EU law, employment aid, fight against unemployment, fisherman, fishing industry, redevelopment aid, redirection of production

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 24.7.2003
COM(2003) 437 final

2003/157 (CNS)

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 2561/2001 aiming to promote the conversion of
fishing vessels and of fishermen that were, up to 1999, dependent on the fishing
agreement with Morocco

(presented by the Commission)

EXPLANATORY MEMORANDUM

The agreement on the relations as regards sea fishing between the European Community and
the Kingdom of Morocco expired on 30 November 1999; at that date, more than 400 fishing
vessels and about 4 300 fishermen were forced to stop their activities.

Council Regulation (EC) No 2561/2001 aiming to promote the conversion of vessels and of
fishermen  that  were,  up  to  1999,  dependent  on  the  fishing  agreement  with  Morocco
introduces a number of derogations from certain provisions of Regulation (EC) No 2792/1999
laying down  the  detailed rules  and arrangements  regarding  Community  structural  assistance
in the fisheries sector.

The necessary conversion is of exceptional magnitude and does  not result from  a deliberate
choice  by  the  stakeholders.  In  view  of  this  array  of  constraints,  the  Council  is  justified  in
adopting  exemption  conditions,  more  favourable  than  the  standard  conditions,  for  a  limited
period of time.

It  has  also  been  necessary  to  facilitate  the  permanent  cessation  of  activity  of  the  vessels,
whether  by  demolition  or  by  transfer  to  a  third  country,  including  within  the  framework  of
joint  enterprises;  it  is  also  appropriate  to  facilitate  the  replacement  of  fishing  gear  for  the
permanent conversion towards other fishing activities, either in Community waters or in the
waters of third countries with which the Community has concluded fisheries agreements.

Concerning the fishermen, it is certain that a significant number of them will be unable to find
a job in the fishing industry, and the Community should contribute to their reclassification or
if necessary help them to stop working. In this regard, Regulation (EC) No 2792/1999 makes
it possible to allocate public appropriations, with FIFG part-financing, to the implementation
of individual or collective social plans for their conversion from sea fishing.

Regulation  (EC)  No  2561/1999  provides  that  where  a  fishermen  is  paid  an  individual  lump
sum, the maximum eligible cost referred to in Article 12(3)(b) and (c) of Regulation (EC) No
2792/1999 is to be increased by 20%. The other provisions of Article 12 continue to apply to
the grant of individual lump sums.

Under Article 12(3)(b) of Regulation (EC) No 2792/1999, individual lump sums may be paid
to  fishermen  provided  the  fishing  vessel  on  which  they  were  employed  has  permanently
stopped its activities, within the meaning of Article 7 of that Regulation.

However, the fishermen covered by the Morocco specific measure did not themselves take the
decision to permanently stop the fishing activity of the vessel on which they were employed
and  may  find  themselves  unemployed  in  the  same  way  as  fishermen  whose  vessel  has
permanently  ceased  its  activity  following  conversion  of  the  vessel  to  another  activity  in
Community waters or other fishing methods.

In  the  interests  of  equal  treatment  of  fishermen  and  in  order  to  cover  the  largest  possible
number,  the  rules  restricting  the  grant  of  individual  lump  sums  exclusively  to  fishermen
whose vessel has permanently stopped its activities should be abolished.

According  to  Article 1  of  Regulation  (EC)  No  2561/2001,  fishermen  are  eligible  for
individual lump sums provided the Member States concerned notify the Commission, no later
than  three  months  after  the  entry  into  force  of  that  Regulation,  of  the  list  of  names  of  the
fishermen meeting the conditions referred to, namely fishermen to whom compensation was

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granted,  during  2000  and  2001,  under  Article  16(1)(b)  of  Regulation  (EC)  No  2792/1999,
owing  to  the  non-renewal  of  the  fishing  agreement  with  Morocco,  for  at  least  a  six-month
cumulative period of temporary cessation of activity. The Member States concerned all sent
their lists of names to the Commission within the deadline laid down in the Regulation.

The  derogation  rules  provided  for  in  Article 2(1)  of  Regulation  (EC)  No  2561/2001  apply
only  to  premiums  and  public  aid  granted  under  an  administrative  decision  taken  between  1
July 2001 and 30 June 2003 by the managing and paying authorities operating in the context
of Structural Fund assistance to fisheries in Spain and in Portugal during 2000-06. The final
date  for  eligibility  of  the  expenditure  is  fixed  at  31  December  2003  and  the  last  date  for
submission to the Commission of the request for payment of the balance is 30 June 2004.

For the purposes of the said derogation, the above-mentioned dates must also be amended by
twelve months, only for the grant of individual lump sums as referred to in Article 12(3)(b).

So that the proposed derogations can be applied, the reference date for taking account of the
period of unemployment should be set at 1 January 2002, instead of being fixed in relation to
the date on which the premium is paid.  If the beneficiary has taken up work as a fisherman
again  within  one  year  from  1  January  2002,  the  sum  paid  will  be  reimbursed  pro  rata
temporis.

The  derogations  proposed  in  this  draft  regulation  do  not  require  any  supplementary
Community budgetary funding.

Legal bases

The proposed legal bases are Articles 36 and 37 of the EC Treaty.

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2003/157 (CNS)

Proposal for a

COUNCIL REGULATION

amending Council Regulation (EC) No 2561/2001 aiming to promote the conversion of
fishing vessels and of fishermen that were, up to 1999, dependent on the fishing
agreement with Morocco

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles
36 and 37 thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the European Economic and Social Committee3,

Having regard to the opinion of the Committee of the Regions4,

Whereas:

(1)

(2)

1

2

3

4

5

6

The  agreement  on  the  relations  as  regards  sea  fishing  between  the  European
Community  and  the  Kingdom  of  Morocco  became  null  and  void  on  30  November
1999.  Consequently,  more  than  400  fishing  vessels  and  about  4  300  fishermen
operating in that context were forced to stop their fishing activities at that date.

Council Regulation (EC) No 2561/2001 of 17 December 20015 introduced derogations
from  Council  Regulation  (EC)  No  2792/19996  for  shipowners  and  fishermen  who
were,  up  to  1999,  dependent  on  the  fishing  agreement  with  Morocco,  applicable  to
certain types of premiums and public aid granted by administrative decision between 1
July  2001  and  30  June  2003.  The  same  Regulation  introduced  a  specific  action  to
supplement  the  measures  taken  in  the  context  of  Structural  Fund  assistance  in  the
Member  States  concerned  due  to  the  non-renewal  of  the  fisheries  agreement  with
Morocco.

OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ C […], […], p. […].
OJ  L  344,  28.12.2001,  as  amended  by  Article 6  of  Regulation  (EC)  No  2372/2002  of  20  December
2002, OJ L 358, 31.12.2002, p. 81.
OJ L 337, 30.12.1999, as last amended by Regulation (EC) No 2369/2002 of 20 December 2002, OJ L
358, 31.12.2002, p. 49.

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(3)

(4)

(5)

The  fishermen  affected  by  the  non-renewal  of  that  fisheries  agreement  may  find
themselves unemployed following conversion of their vessel to another activity in the
same way as fishermen whose vessel has permanently stopped its activity. In order to
ensure that all fishermen are treated equally, the provisions stipulating that individual
lump sums may be paid to fishermen only provided the fishing vessel on which they
were employed has permanently stopped its activities should be abolished.

The minimum period of less than one year referred to in Article 12(4)(c) of Regulation
(EC) No 2792/1999 during which  the  fisherman  may  not  work  as  a  fisherman  again
without being required to pay back the premium received pro rata temporis should be
calculated from 1 January 2002 - the date from which temporary cessation payments
may  no  longer  be  paid  -  and  not  from  the  date  on  which  the  premium  was  actually
paid.

In  view  of  the  deadlines  currently  in  force,  in  order  to  be  able  to  apply  the
abovementioned  amendments,  the  time  limits  for  the  date  of  the  administrative
decision, the final date  for eligibility of expenditure and the final date for presenting
the request for payment of the balance should all be extended by twelve months,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2561/2001 is hereby amended as follows:

1.

Article 2 is amended as follows:

(a)

paragraph 1(d) is replaced by the following:

d)

(i)

(ii)

in the case of an individual lump sum payment to a fisherman,

the maximum eligible cost referred to in Article 12(3)(b) and (c) shall be
increased by 20 %;

the  requirement  laid  down  in  Article 12(3)(b)  that  beneficiaries  must
have been employed on a fishing vessel which has permanently ceased its
activity within the meaning of Article 7 shall be abolished;

(iii)

the period  of less than  one  year referred  to in  Article 12(4)(c)  shall  run
from 1 January 2002.

(b)

Paragraph 2 is replaced by the following:

The  derogation  rules  laid  down  in  paragraph  1  shall  apply  only  to  premiums
and public aid that have been granted under an administrative decision by the
authorities  referred  to  in  Article  6,  taken  between  1  July  2001  and  30  June
2003.  The  latter  date  shall  be  30  June  2004  for  the  premiums  referred  to  in
Article 12(3)(b).

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2.

Article 5(4) is replaced by the following:

The expenses actually paid by the final beneficiary from 1 July 2001 shall be eligible
for  the  Community  contribution  under  this  measure.  The  deadline  for  eligibility  of
the expenditure shall be 31 December 2003. That date shall be 31 December 2004 for
the premiums referred to in Article 12(3)(b).

The  last  date  for  submission  to  the  Commission  of  the  request  for  payment  of  the
balance  shall  30  June  2004.  That  date  shall  be  30  June  2005  for  the  premiums
referred to in Article 12(3)(b).

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

Article 2

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

Done at Brussels,

For the Council
The President

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