Council Regulation (EC) No 744/2008 of 24 July 2008 instituting a temporary specific action aiming to promote the restructuring of the European Community fishing fleets affected by the economic crisis
Date: 2008-07-24
Institutions: Council of the European Union
Subjects: EU aid, EU financing, State aid, fishing fleet, fishing regulations, industrial restructuring

31.7.2008

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

I

REGULATIONS

COUNCIL REGULATION (EC) No 744/2008

of 24 July 2008

instituting a temporary specific action aiming to promote the restructuring of the European
Community fishing fleets affected by the economic crisis

THE COUNCIL OF THE EUROPEAN UNION,

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

establishing the European

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

Whereas:

(1)

(2)

(3)

Council Regulation (EC) No 1198/2006 of 27 July 2006
on the European Fisheries Fund (2) lays down the rules
regarding Community structural assistance in the fisheries
sector. In particular, Chapter I of Title IV of that Regu­
lation lays down the terms on which the Member States
may receive a financial contribution from the European
Fisheries Fund (EFF) for the measures for the adaptation
of the Community fishing fleet.

The EFF aims to contribute to the steps that have been
taken since the 2002 reform of the common fisheries
policy (CFP) in view of reducing pressure on fish stocks,
whilst
economic
conditions for the sector concerned.

sustainable

ensuring

social

and

the

context of

situation,
economic
In the
following in particular
the drastic increase in fuel
prices, there is an impending need to take additional
the
measures aiming for a more rapid adaptation of

recent

current

to the

fishing fleet

situation,
Community
addressing the need to ensure sustainable social and
economic conditions for
the sector concerned. Such
measures
should contribute to attaining the general
objectives set out in Article 33 of the Treaty and the
CFP objectives as laid down in Council Regulation (EC)
No 2371/2002 of 20 December 2002 on the conser­
vation and sustainable exploitation of fisheries resources
under the common fisheries policy (3). In this context,
should address both the immediate
those measures
situation of
and social hardship while
tackling systemic overcapacity.

economic

(4)

(5)

It is of importance to ensure that such measures will be
equally available for all Member States and that they do
introduce any distortion of competition between
not
Member States or fleets. They therefore need to be
addressed and coordinated at Community level.

provisions

of Regulation

Consequently, there is a need for a Community initiative
supplementing and allowing for temporary derogations
from certain
(EC) No
1198/2006 and to temporarily derogate from certain
provisions of Regulations (EC) No 2371/2002 and (EC)
No 1198/2006. This initiative should therefore provide
for specific measures of general nature and for the imple­
mentation of Fleet Adaptation Schemes in the Member
States, which effectively address the current economic
difficulties, whilst ensuring the long-term viability of
fisheries sector.

(6)

In view of the exceptional nature of those measures and
of the economic hardship they intend to address, the
these measures should be limited to the
duration of
shortest possible period sufficient
the
expected aims.

to achieve

(1) Opinion delivered on 10 July 2008 (not yet published in the Official

Journal).

(2) OJ L 223, 15.8.2006, p. 1.

(3) OJ L 358, 31.12.2002, p. 59. Regulation as amended by Regulation

(EC) No 865/2007 (OJ L 192, 24.7.2007, p. 1).

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(7)

(8)

(9)

(10)

(11)

These measures should be implemented by the Member
States in the context of
their operational programme
under the EFF and financed from the funds allocated to
them in that framework.

be

States

entitled

to
should
Moreover, Member
supplement
the measures benefiting from such funds
by financing certain measures through solely national
funds with no financing from Community financial
instruments. In view of the need to rapidly tackle the
those
serious situation faced by the fisheries sector,
measures,
structural
improvement and long-term economic viability of the
sector, should not be subject
to the application of
Articles 87, 88 and 89 of the Treaty. In order to limit
possible distortions of competition and effects on the
internal market,
to
certain limitations.

those measures should be subject

bringing

aimed

about

at

This Regulation should provide for a Community contri­
bution to measures
for permanent and temporary
cessation of fishing activities, for investments on board
aiming to reduce fuel dependency of fishing vessels, for
socio-economic compensation as well as for certain
actions of a more collective nature. In order to ensure
the effectiveness of those measures, as well as to allow
Member States to make use of the available funds to the
fullest extent possible, the thresholds for private partici­
pation in the financing of
the measures should be
lowered.

fishing activities

In order to contribute to restructuring, the temporary
cessation of fishing activities should be made available.
Temporary cessation of
should in
particular be aimed at enhancing economic benefits by
supporting stock recovery or by promoting more
effect,
favourable marketing
Member States should be encouraged to link the period
of temporary cessation with considerations of biological
dynamics,
In the
it is also necessary to
context of the economic crisis,
facilitate the compensation to be granted to fishers that
have temporary ceased their activities prior
to the
adoption of this Regulation.

seasonality and market dynamics.

conditions.

that

To

In view of assisting the fishing sector to adapt to less fuel
to
consuming fishing techniques,
facilitate the replacement of existing equipment on
less
board fishing vessels in order to allow for new,
energy-consuming,
regard,
additional possibilities for contributions to investments
on board fishing vessels should be made available.

fishing techniques.

appropriate

In this

is

it

(12) A Community contribution should also be provided for
collective actions aimed at delivering expertise to vessel
owners in relation to energy audits for vessels, and expert
advice on the development of restructuring and moder­
nisation plans and Fleet Adaptation Schemes. Moreover,
financing should be made available for pilot projects
aiming at
reducing energy consumption for vessels,
engines, equipment or gear.

(13)

In view of long-term viability of the fishing sector, a new
instrument should be introduced allowing Member States
to reduce capacity and to increase profitability of the
fleets. This should take the form of Fleet Adaptation
Schemes and concern fleets where the energy costs
represent on average at least 30 % of the production
costs. These Fleet Adaptation Schemes should result in
a capacity reduction of the fleets concerned of at least
30 % expressed in GT and kW.

(14) Where measures are implemented by Member States in
the context of Fleet Adaptation Schemes, with a view to
ensuring the long-term viability of one or more of their
fleets
favourable
conditions should apply.

through capacity reduction, more

(15)

(16)

their

There is a need to encourage Member States to further
extend their permanent cessation schemes in order to
adjust
fleets to the available resources. Conse­
quently, it is appropriate to allow for further contribution
possibilities to permanent cessation. In order to facilitate
restructuring, further possibilities for temporary cessation
of fishing activities should be allowed for fishers and
vessel owners concerned by Fleet Adaptation Schemes.

be

also

should

allowed

Scheme

Furthermore, Member States having adopted a Fleet
Adaptation
to
implement partial decommissioning measures ensuring
a more cost-efficient use of funds available for reducing
capacity and energy consumption of the fleet concerned.
Within such partial decommissioning measures, vessel
owners withdrawing one or more of their vessels from
the fleet should be allowed to re-use part of the capacity
withdrawn for a new smaller and less energy consuming
vessel. In addition, Member States should be allowed to
allocate a limited amount of the total capacity withdrawn
under the Fleet Adaptation Scheme to new vessels. In
such case, funds should be made available only for the
part of the capacity which is permanently withdrawn.

(17)

The obligations of Member States regarding management
and control pursuant to Article 70 of Regulation (EC) No
1198/2006 and the mechanism for corrections pursuant
to Article 97 of Regulation (EC) No 1198/2006 should
apply in the framework of this Regulation.

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(18)

(19)

Failure to achieve the 30 % minimum reduction in
capacity laid down in a Fleet Adaptation Scheme or
failure
rules on temporary
cessation, permanent cessation or partial decommis­
sioning should be regarded as irregularities within the
meaning of Article 97 of Regulation (EC) No 1198/2006.

to comply with the

Article 2

Scope

This Regulation shall apply only to public aid which has been
the subject of an administrative decision by the relevant
national authorities by 31 December 2010.

In view of the urgency of the situation and the need for
immediate action in all Member States, it is appropriate
to increase the percentage of Community co-financing
under the EFF of the measures under this initiative to
it is important that these
95 %.
funds are available to Member States within shorter
delays than normally applicable and that expenditure is
eligible from the date of the entry into force of this
Regulation.

In the same context,

Article 3

Financial framework

The measures provided for under this Regulation may
1.
receive financial support from the EFF within the limits of the
commitment appropriations defined for the period 2007-13.

(20) Given the urgency of the situation, there is a compelling
need to allow an exception to the six-week period
referred to in Section I.3 of the Protocol on the role of
national parliaments in the European Union, annexed to
the Treaty on European Union and to the Treaties estab­
lishing the European Communities,

2.
Public aid granted under this specific action may not be
cumulated with another public aid having the same purpose,
and in particular that granted by the European Agricultural
Fund for Rural Development (EAFRD), the European Regional
Development Fund (ERDF), the European Social Fund (ESF), the
Cohesion Fund, other Community financial
instruments and
national funds.

HAS ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

Article 4

Application of State aid rules

1. Without prejudice to paragraph 2 of this Article, Articles
87, 88 and 89 of the Treaty shall not apply to aid granted by
Member States, pursuant to and in conformity with this Regu­
lation within the scope of Article 36 of the Treaty.

1.
This Regulation establishes a specific Community action
designed to provide for exceptional and temporary support for
the persons and enterprises active in the fisheries sector affected
by the economic crisis induced by the increase of oil prices in
2008, as a special regime under the European Fisheries Fund
(hereinafter referred to as EFF).

2.

This specific action shall consist of:

Aid granted by Member States with no financing from
2.
Community financial
instruments and exceeding the limits
laid down in Article 1(3) of Commission Regulation (EC) No
736/2008 of 22 July 2008 on the application of Articles 87
and 88 of the Treaty to State aid to small and medium-sized
enterprises active in the production, processing and marketing
of fisheries products (1) shall be subject to the application of
Articles 87, 88 and 89 of the Treaty.

(a) general measures

supplementing and derogating from
certain provisions of Regulation (EC) No 1198/2006, and

(b) special measures supplementing and derogating from certain
provisions of Regulations (EC) No 2371/2002 and (EC) No
1198/2006 that are conditional upon the implementation
of a Fleet Adaptation Scheme as referred to in Article 12.

3. Where aid is granted by Member States with no financing
from Community financial
instruments within the limits laid
down in Article 1(3) of Regulation (EC) No 736/2008, they
shall forward to the Commission a summary of the information
regarding such aid prior to its implementation. Moreover, each
year, by 1 July at the latest, Member States shall submit to the
Commission a report on the aid granted under this paragraph.

(1) OJ L 201, 30.7.2008, p. 16.

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CHAPTER II

GENERAL MEASURES

Article 5

General measures

Public aid to the persons and enterprises referred to in Article 1
may be granted until 31 December 2010 according to the rules
set out in this Chapter.

Article 6

Temporary cessation of fishing activities

1.
In addition to the measures provided for in Article 24 of
Regulation (EC) No 1198/2006, the EFF may contribute to the
financing of aid measures for the temporary cessation of fishing
for a
activities
maximum duration of three months implemented during the
period from 1 July 2008 to 31 December 2009, provided that:

fishers and owners of

fishing vessels

for

(a)

the temporary cessation of
before 31 December 2008, and

fishing activities commenced

(b) the beneficiary enterprises become subject until 31 January
2009 to restructuring measures such as Fleet Adaptation
Schemes, fishing effort adjustment plans, national decom­
missioning schemes, catch plans, other restructuring/moder­
nisation measures.

The management plans provided for in Articles 9 and 10 of
Regulation (EC) No 2371/2002 shall be covered by this
paragraph,
insofar as they involve fishing effort adjustment
plans pursuant to Article 21 of Regulation (EC) No 1198/2006.

The measures provided for in paragraph 1 may cover the

2.
following costs:

(a) part of the fixed cost incurred by the vessel owners when
(such as port charges,
financial costs related

is tied-up in the port
the vessel
insurance cost, maintenance costs,
to loans);

(b) part of the basic salary of the fishers.

3.
The total public aid per Member State to the measures
provided for in paragraph 1 shall not exceed the higher of the
following two thresholds: EUR 6 million or an amount equal to
8 % of the EFF financial assistance allocated to the sector in the
Member State concerned.

Article 7

Investments on board fishing vessels and selectivity

By way of derogation from point (a) of Annex II to Regulation
(EC) No 1198/2006 where a contribution is granted for the
including auxiliary motors, which
financing of equipment,
energy efficiency on board fishing
significantly improves
vessels,
fishing vessels, and
reduces emissions and contributes to the fight against climate
the minimum private financial participation to that
change,
operation shall be 40 %.

including small

scale coastal

Article 8

Socio-economic compensation

In addition to the measures provided for in Article 27 of Regu­
the EFF may contribute to the
lation (EC) No 1198/2006,
financing of early departure measures, including early retirement
for workers in the fisheries sector, with the exception of
workers
in the aquaculture sector and in the sector of
processing of fisheries and aquaculture products.

Article 9

Collective actions

1.
in
In addition to the collective actions provided for
Article 37 of Regulation (EC) No 1198/2006, the EFF may
contribute to the financing of measures providing assistance for:

(a) carrying out energy audits for groups of vessels, and

(b) expert advice on the development of

restructuring or
including Fleet Adaptation Schemes

modernisation plans,
referred to in Article 12.

2.
By way of derogation from point (a) of Annex II to Regu­
lation (EC) No 1198/2006, where a contribution is granted for
the financing of measures referred to in paragraph 1 of this
the maximum rate for public contribution shall be
Article,
100 %.

The EFF may contribute to the financing of compensation
3.
granted to producer organisations which are no longer entitled
to benefit from aid under the second and third subparagraph of
Article 10(1) of Council Regulation (EC) 104/2000 of
the
17 December 1999 on the common organisation of
markets in fishery and aquaculture products (1),
in order to
offset the costs arising from the obligations imposed on them
under Article 9 of the same Regulation, and subject to the
conditions laid down in Article 10, paragraphs 2, 3 and 4 of
that Regulation.

(1) Council Regulation (EC) No 104/2000 of 17 December 1999 on the
common organisation of the markets in fishery and aquaculture
products (OJ L 17, 21.1.2000, p. 22). Regulation as last amended
by Regulation (EC) No 1759/2006 (OJ L 335, 1.12.2006, p. 3).

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Article 10

Pilot projects

In addition to the measures provided for in Article 41(2) of
Regulation (EC) No 1198/2006, the EFF may contribute to the
financing of pilot projects
improvements
aiming at reducing energy consumption for vessels, engines,
equipment or gear and at reducing emissions and contributing
to the fight against climate change.

testing technical

or where a Fleet Adaptation Scheme covers only vessels of
less than 12 metres, and a 30 % reduction would dispro­
portionately affect
related
the viability of
activities depending on it, and

the fisheries

(b) it shall include the list of the vessels covered by the scheme,
identified by their names and Community Fishing Fleet
Register numbers.

CHAPTER III

SPECIAL MEASURES APPLICABLE ONLY

TO FLEETS

CONCERNED BY FLEET ADAPTATION SCHEMES

Each fishing vessel may be included only in one Fleet
5.
Adaptation Scheme. The conditions for including a fishing
vessel in a Fleet Adaptation Scheme shall be as follows:

Article 11

Measures applicable only to fleets subject to Fleet
Adaptation Schemes

Public aid to the persons and enterprises referred to in Article 1
may be granted until 31 December 2010, according to the rules
set out in this Chapter, provided they are subject to a Fleet or
Fleet Segment Adaptation Scheme referred to in Article 12.

Article 12

Fleet Adaptation Schemes

1. Member States may adopt and implement Fleet Adap­
tation Schemes aimed at restructuring the fishing fleets or
fleet segments affected by the economic crisis.

2.
Fleet Adaptation Schemes may include the measures
provided for in Chapter I of Title IV of Regulation (EC) No
1198/2006 and those provided for in this Regulation.

(a) vessels must have carried out a fishing activity of at least
120 days at sea during the two years preceding the date of
the adoption of the Fleet Adaptation Scheme; and

(b) vessels must be operational on 31 July 2008.

By 30 June 2009 at

to the Commission the

the latest, Member States shall
Fleet Adaptation

6.
communicate
Schemes adopted.

7. When a Member State requests a revision of its operation­
al programme for the purpose of incorporating the Fleet Adap­
tation Schemes, Article 18 of Regulation (EC) No 1198/2006
shall apply accordingly.

3.
A Fleet Adaptation Scheme shall concern only fleets or
fleet segments where the energy costs represent on average at
least 30 % of
the production costs, based on the trading
account for the 12 months preceding 1 July 2008 for the
fleet concerned by that scheme.

Compliance and audit of Fleet Adaptation Schemes

The reports mentioned in Article 67 of Regulation (EC)
1.
No 1198/2006 shall include the results achieved in implemen­
tation of the Fleet Adaptation Schemes.

Article 13

A Fleet Adaptation Scheme shall

4.
requirements:

fulfil

the following

2.
The Commission may perform audits on the implemen­
tation of the Fleet Adaptation Schemes. To that purpose, it may
be assisted by external experts financed by the EFF under the
provisions of Article 46(1) of Regulation (EC) No 1198/2006.

(a)

least 30 % of

reduction of at
the fleet or

in a
it shall result, by 31 December 2012 at the latest,
the fishing
permanent
capacity of
fleet segment covered by the
scheme; that threshold may be lowered to a minimum of
20 %, subject to the approval of the Commission, where the
Fleet Adaptation Scheme concerns a Member State whose
fleet is less than 100 active vessels, or less than 12 000 GT,

Article 14

Permanent cessation of fishing activities

1.
For the purposes of Article 23 of Regulation (EC) No
1198/2006, Fleet Adaptation Schemes are assimilated to the
fishing effort adjustment plans referred to in that Article.

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The provisions of Article 23(2) of Regulation (EC) No
2.
1198/2006 shall not apply to permanent cessation measures
adopted in the context of a Fleet Adaptation Scheme.

3. Within six months from the adoption of a Fleet Adap­
tation Scheme, the vessels listed for permanent cessation of
this Fleet Adaptation Scheme shall
fishing activities under
cease permanently their fishing activities.

Article 16

Investments on board fishing vessels and selectivity

1.
By way of derogation from point (a) of Annex II to Regu­
lation (EC) No 1198/2006, where a contribution is granted for
the financing of equipment or of gear or engine replacement
which significantly improves energy efficiency on board fishing
vessels, including small scale coastal fishing vessels, and reduces
emissions and contributes to the fight against climate change,
the minimum private financial participation to that operation
shall be 40 % of the total of the eligible costs of the operation.

Article 15

Temporary cessation of fishing activities

1.
In addition to the measures provided for by Article 24 of
Regulation (EC) No 1198/2006 and in Article 6 of this Regu­
lation, the EFF may contribute to the financing of aid measures
fishing activities for fishers and
for temporary cessation of
owners of
included in a Fleet Adaptation
fishing vessels
Scheme, provided that the temporary cessation is implemented
during the period going from 1 January 2009 to 31 December
2009 and has a maximum duration of:

(a)

three months prior to the permanent withdrawal of the
vessel or during the period of engine replacement; a
maximum of
three additional months may be granted
where the process of engine replacement is still ongoing;

(b) six weeks in the case of the other vessels included in a Fleet
Adaptation Scheme when those vessels are subject to one of
the other measures referred to in Article 12, paragraph 2.

The measures provided for in paragraph 1 may cover the

2.
following costs:

(a)

the fixed cost incurred by the vessel owners when the vessel
is tied-up in the port (such as port charges, insurance cost,
maintenance costs, financial costs related to loans);

(b) part of the basic salary of the fishers.

3.
The total public aid per Member State to the measures
provided for in paragraph 1 shall not exceed the higher of the
following two thresholds: EUR 6 million or an amount equal to
8 % of the EFF financial assistance allocated to the sector in the
Member State concerned.

2. Member States shall
fix the minimum private financial
participation referred to in paragraph 1 on the basis of
objective criteria such as the age of the vessel, the energy effi­
the amount of capacity reduction
ciency improvement, or
included in the Fleet Adaptation Scheme.

3.
The age limit referred to in Article 25(1) of Regulation
(EC) No 1198/2006 shall not apply to the vessels receiving aid
under this Article for equipment or gear replacement.

4.
By way of derogation from Article 25(3)(c) of Regulation
(EC) No 1198/2006, the EFF may contribute to one repla­
cement of the engine per vessel of more than 24 metres in
overall
Fleet Adaptation Scheme,
provided that the new engine has at least 20 % less power
than the old one and it increases energy efficiency.

length included in a

By way of derogation from paragraph 7 of Article 25 of
5.
Regulation (EC) No 1198/2006, one additional replacement of
gear shall be allowed to vessels included in a Fleet Adaptation
Scheme under the condition that the new gear significantly
improves energy efficiency. The conditions
laid down in
points (a) and (b) of that paragraph shall not apply.

CHAPTER IV

MEASURES FOR PARTIAL DECOMMISSIONING UNDER FLEET
ADAPTATION SCHEMES

Article 17

Partial decommissioning

Public aid to vessel owners permanently withdrawing one or
more vessels included in a Fleet Adaptation Scheme in order to
build a new vessel of lesser fishing capacity and lesser energy
consumption (hereinafter
referred to as partial decommis­
sioning) may be granted until 31 December 2010 according
to the rules laid down in this Chapter, and provided that the
Fleet Adaptation Scheme fulfils the following two requirements:

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(a)

it includes vessels using one and the same fishing gear, and

CHAPTER V

(b) it includes vessels representing at least 70 % of the capacity

of the fleet using that gear in the Member State.

Article 18

Public aid for the permanent cessation of fishing in the
case of partial decommissioning

1.
In addition to Article 23 of Regulation (EC) No
1198/2006, vessel owners engaging in partial decommissioning
shall be entitled to receive public aid for
the permanent
cessation of
fishing activities for the difference between the
capacity withdrawn and the capacity re-allocated to a new
vessel.

The fishing capacity of the new vessel shall not be higher

2.
than 40 % of the capacity withdrawn by the vessel owners.

3. Where appropriate, Member States shall adapt the fishing
licence accordingly.

Article 19

Withdrawal and reallocation of fishing capacity

1.
By way of derogation from Article 11, paragraphs 3 and
4, of Regulation (EC) No 2371/2002, Member States shall be
entitled to reallocate up to 25 % of the capacity permanently
withdrawn in the context of a Fleet Adaptation Scheme to new
vessels as referred to in Article 17 of this Regulation.

2.
The reference levels referred to in Article 12 of Regulation
(EC) No 2371/2002 are deducted by the difference between the
capacity permanently withdrawn and the capacity reallocated.

3.
The capacity reallocated under paragraph 1 of this Article
need not be taken into account for the establishment of the
balance of entries and exits by Member States under Article 13
of Regulation (EC) No 2371/2002.

FINANCIAL PROVISIONS

Article 20

Financial provisions

1.
By way of derogation from Article 53 of Regulation (EC)
No 1198/2006, the contribution from the EFF to operations
financed in the context of the specific action set out in this
Regulation shall be subject to a ceiling of 95 % of the total
public expenditure and shall not be taken into account for
the purposes of the ceilings referred to in Article 53(3) of the
said Regulation.

By way of derogation from Article 55(1) and (3), second
2.
subparagraph, of Regulation (EC) No 1198/2006, the date of
eligibility of expenditure for measures financed by this specific
action shall be 31 July 2008.

3.
By way of derogation from Article 81(1) of Regulation
(EC) No 1198/2006, a second pre-financing amount represen­
ting 7 % of the contribution from the EFF for the period 2007
to 2013 to the operational programme shall be paid by the
Commission upon request by the Member State. For operational
the above request shall be
programmes adopted in 2007,
the latest by 31 October
submitted to the Commission at
2008. For operational programmes adopted in 2008,
the
above request shall be submitted to the Commission at the
latest by 30 June 2009.
It may be spread to two financial
years in accordance with the available budget of the EFF.

By way of derogation from Article 81(2) of Regulation
4.
(EC) No 1198/2006, where the second pre-financing amount
is paid in accordance with paragraph 2 of the said Article, the
total amount paid as pre-financing shall be reimbursed to the
Commission by the body designated by the Member State if no
application for payment under the operational programme is
sent within 24 months from the date on which the Commission
paid the first instalment of the second pre-financing amount.

CHAPTER VI

OBLIGATIONS OF MEMBER STATES AND OF

THE

COMMISSION

Article 21

Follow-up and financial corrections

4.
In Fleet Adaptation Schemes where partial decommis­
sioning is applied to more than 33 % of initial fleet capacity,
the total reduction in capacity under the Fleet Adaptation
Scheme shall be of at least 66 %.

1. Member States shall ensure that aid granted pursuant to
Chapters II, III and IV of this Regulation complies with the
conditions laid down in Article 70 of Regulation (EC) No
1198/2006.

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The Commission shall undertake the financial corrections
2.
provided for in Article 97 of Regulation (EC) No 1198/2006) if
Member States fail to comply with the conditions laid down in
this Regulation, in particular:

(a)

the obligation of persons or enterprises receiving aid to
undergo restructuring measures pursuant to Article 6(1)(b);

(b) the obligations laid down to reduce fishing capacity, and the
temporary or permanent cessation of fishing activities as
laid down in a Fleet Adaptation Scheme pursuant
to
Articles 12, 14 and 15;

(c) reductions in fishing capacity effected in the framework of
to Articles

partial decommissioning undertaken pursuant
17, 18 and 19.

Article 22

Report

The Commission shall report to the European Parliament and
the Council on the application of the measures laid down in
this Regulation by 31 December 2009 at the latest.

CHAPTER VII

FINAL PROVISIONS

Article 23

Implementing rules

The implementing rules for this Regulation may be adopted in
accordance with the procedure referred to in Article 101(3) of
Regulation (EC) No 1198/2006.

Article 24

Entry into force

The criteria for corrections laid down in Article 97 of Regu­
lation (EC) No 1198/2006 shall apply accordingly.

This Regulation shall enter into force on the day of its publi­
cation 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, 24 July 2008.

For the Council
The President

B. HORTEFEUX