Article 1 Subject-matter
This Regulation defines Union financial measures for the implementation of: (a) the Common Fisheries Policy (CFP); (b) relevant measures relating to the Law of the Sea; (c) the sustainable development of fisheries and aquaculture areas and inland fishing; and (d) the Integrated Maritime Policy (IMP).
Article 2 Geographical scope
This Regulation applies to operations carried out in the territory of the Union, unless otherwise provided for in this Regulation.
Article 3 Definitions
1. For the purposes of this Regulation and without prejudice to paragraph 2 of this Article, 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 1303/2013 apply. 2. For the purpose of this Regulation, the following definitions apply: (1) ‘Common information sharing environment’ (CISE) means a network of systems with a decentralised set-up developed for the exchange of information between users in order to improve their situational awareness of activities at sea; (2) ‘cross-sectoral operations’ means those initiatives that mutually benefit different sectors and/or sectoral policies, as referred to in the TFEU, and that cannot be accomplished entirely through measures encompassed within respective policy areas; (3) ‘electronic recording and reporting system’ (ERS) means a system for the electronic recording and reporting of data as referred to in Regulation (EC) No 1224/2009; (4) ‘European marine observation and data network’ means a network that integrates relevant national marine observation and data programmes into a common and accessible European resource; (5) ‘fisheries and aquaculture area’ means an area with a sea, river or lake shore, including ponds or a river basin, with a significant level of employment in fisheries or aquaculture, that is functionally coherent in geographical, economic and social terms and is designated as such by a Member State; (6) ‘fisherman’ means any person engaging in commercial fishing activities, as recognised by the Member State; (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; (8) ‘integrated coastal zone management’ means strategies and measures such as those described in Recommendation 2002/413/EC of the European Parliament and of the Council ( 1 ); (9) ‘integrated maritime governance’ means the coordinated management of all sectoral policies at Union level affecting the oceans, seas and coastal regions; (10) ‘Integrated Maritime Policy’ (IMP) means a Union policy whose aim is to foster coordinated and coherent decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, and notably the coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation; (11) ‘Integrated maritime surveillance’ (IMS) means a Union initiative aimed at enhancing effectiveness and efficiency in surveillance activities in respect of the European seas through information exchange and collaboration across sectors and borders; (12) ‘maritime spatial planning’ means a process by which the relevant Member State’s authorities analyse and organise human activities in marine areas in order to achieve ecological, economic and social objectives; (13) ‘measure’ means a set of operations; (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 fishing gear as listed in Table 3 of Annex I to Commission Regulation (EC) No 26/2004 ( 2 ); (15) ‘vessels operating exclusively in inland waters’ means vessels engaged in commercial fishing in inland waters and not included in the Union fishing fleet register.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 3 Definitions):
For the purpose of this Regulation, the following definitions apply: (1) ‘Common information sharing environment’ (CISE) means a network of systems with a decentralised set-up developed for the exchange of information between users in order to improve their situational awareness of activities at sea; (2) ‘cross-sectoral operations’ means those initiatives that mutually benefit different sectors and/or sectoral policies, as referred to in the TFEU, and that cannot be accomplished entirely through measures encompassed within respective policy areas; ‘electronic recording and reporting system’ (ERS) means a system for the electronic recording and reporting of data as referred to in Regulation (EC) No 1224/2009; (4) ‘European marine observation and data network’ means a network that integrates relevant national marine observation and data programmes into a common and accessible European resource; (5) ‘fisheries and aquaculture area’ means an area with a sea, river or lake shore, including ponds or a river basin, with a significant level of employment in fisheries or aquaculture, that is functionally coherent in geographical, economic and social terms and is designated as such by a Member State; (6) ‘fisherman’ means any person engaging in commercial fishing activities, as recognised by the Member State; (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; (8) ‘integrated coastal zone management’ means strategies and measures such as those described in Recommendation 2002/413/EC of the European Parliament and of the Council ( 1 ); (9) ‘integrated maritime governance’ means the coordinated management of all sectoral policies at Union level affecting the oceans, seas and coastal regions; (10) ‘Integrated Maritime Policy’ (IMP) means a Union policy whose aim is to foster coordinated and coherent decision-making to maximise the sustainable development, economic growth and social cohesion of Member States, and notably the coastal, insular and outermost regions in the Union, as well as maritime sectors, through coherent maritime-related policies and relevant international cooperation; (11) ‘Integrated maritime surveillance’ (IMS) means a Union initiative aimed at enhancing effectiveness and efficiency in surveillance activities in respect of the European seas through information exchange and collaboration across sectors and borders; (12) ‘maritime spatial planning’ means a process by which the relevant Member State’s authorities analyse and organise human activities in marine areas in order to achieve ecological, economic and social objectives; (13) ‘measure’ means a set of operations; (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 fishing gear as listed in Table 3 of Annex I to Commission Regulation (EC) No 26/2004 ( 2 ); (15) ‘vessels operating exclusively in inland waters’ means vessels engaged in commercial fishing in inland waters and not included in the Union fishing fleet register.
Article 4 Establishment
The European Maritime and Fisheries Fund (EMFF) is hereby established.
Article 5 Objectives
The EMFF shall contribute to the achievement of the following objectives: (a) promoting competitive, environmentally sustainable, economically viable and socially responsible fisheries and aquaculture; (b) fostering the implementation of the CFP; (c) promoting a balanced and inclusive territorial development of fisheries and aquaculture areas; (d) fostering the development and implementation of the Union’s IMP in a manner complementary to cohesion policy and to the CFP. The pursuit of those objectives shall not result in an increase in fishing capacity.
Article 6 Union priorities
The EMFF shall contribute to the Europe 2020 strategy and to the implementation of CFP. It shall pursue the following Union priorities for the sustainable development of fisheries and aquaculture and related activities, which reflect the relevant thematic objectives referred to in Regulation (EU) No 1303/2013: (1) Promoting environmentally sustainable, resource–efficient, innovative, competitive and knowledge–based fisheries by pursuing the following specific objectives: (a) the reduction of the impact of fisheries on the marine environment, including the avoidance and reduction, as far as possible, of unwanted catches; (b) the protection and restoration of aquatic biodiversity and ecosystems; (c) the ensuring of a balance between fishing capacity and available fishing opportunities; (d) the enhancement of the competitiveness and viability of fisheries enterprises, including of small–scale coastal fleet, and the improvement of safety and working conditions; (e) the provision of support to strengthen technological development and innovation, including increasing energy efficiency, and knowledge transfer; (f) the development of professional training, new professional skills and lifelong learning. (2) Fostering environmentally sustainable, resource-efficient, innovative, competitive and knowledge-based aquaculture by pursuing the following specific objectives: (a) the provision of support to strengthen technological development, innovation and knowledge transfer; (b) the enhancement of the competitiveness and viability of aquaculture enterprises, including the improvement of safety and working conditions, in particular of SMEs; (c) the protection and restoration of aquatic biodiversity and the enhancement of ecosystems related to aquaculture and the promotion of resource-efficient aquaculture; (d) the promotion of aquaculture having a high level of environmental protection, and the promotion of animal health and welfare and of public health and safety; (3) Fostering the implementation of the CFP by pursuing the following specific objectives: (a) the improvement and supply of scientific knowledge as well as the improvement of the collection and management of data; (b) the provision of support to monitoring, control and enforcement, thereby enhancing institutional capacity and the efficiency of public administration, without increasing the administrative burden. (4) Increasing employment and territorial cohesion by pursuing the following specific objective: the promotion of economic growth, social inclusion and job creation, and providing support to employability and labour mobility in coastal and inland communities which depend on fishing and aquaculture, including the diversification of activities within fisheries and into other sectors of maritime economy. (5) Fostering marketing and processing by pursuing the following specific objectives: (a) the improvement of market organisation for fishery and aquaculture products; (b) the encouragement of investment in the processing and marketing sectors. (6) Fostering the implementation of the IMP.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 6 Union priorities):
The EMFF shall contribute to the Europe 2020 strategy and to the implementation of CFP. It shall pursue the following Union priorities for the sustainable development of fisheries and aquaculture and related activities, which reflect the relevant thematic objectives referred to in Regulation (EU) No 1303/2013: Promoting environmentally sustainable, resource–efficient, innovative, competitive and knowledge–based fisheries by pursuing the following specific objectives: (a) the reduction of the impact of fisheries on the marine environment, including the avoidance and reduction, as far as possible, of unwanted catches; (b) the protection and restoration of aquatic biodiversity and ecosystems; (c) the ensuring of a balance between fishing capacity and available fishing opportunities; (d) the enhancement of the competitiveness and viability of fisheries enterprises, including of small–scale coastal fleet, and the improvement of safety and working conditions; (e) the provision of support to strengthen technological development and innovation, including increasing energy efficiency, and knowledge transfer; (f) the development of professional training, new professional skills and lifelong learning. Fostering environmentally sustainable, resource-efficient, innovative, competitive and knowledge-based aquaculture by pursuing the following specific objectives: (a) the provision of support to strengthen technological development, innovation and knowledge transfer; (b) the enhancement of the competitiveness and viability of aquaculture enterprises, including the improvement of safety and working conditions, in particular of SMEs; (c) the protection and restoration of aquatic biodiversity and the enhancement of ecosystems related to aquaculture and the promotion of resource-efficient aquaculture; (d) the promotion of aquaculture having a high level of environmental protection, and the promotion of animal health and welfare and of public health and safety; Fostering the implementation of the CFP by pursuing the following specific objectives: (a) the improvement and supply of scientific knowledge as well as the improvement of the collection and management of data; (b) the provision of support to monitoring, control and enforcement, thereby enhancing institutional capacity and the efficiency of public administration, without increasing the administrative burden. Fostering the implementation of the CFP by pursuing the following specific objectives: (a) the improvement and supply of scientific knowledge as well as the improvement of the collection and management of data; (b) the provision of support to monitoring, control and enforcement, thereby enhancing institutional capacity and the efficiency of public administration, without increasing the administrative burden. (4) Increasing employment and territorial cohesion by pursuing the following specific objective: the promotion of economic growth, social inclusion and job creation, and providing support to employability and labour mobility in coastal and inland communities which depend on fishing and aquaculture, including the diversification of activities within fisheries and into other sectors of maritime economy. Fostering marketing and processing by pursuing the following specific objectives: (a) the improvement of market organisation for fishery and aquaculture products; (b) the encouragement of investment in the processing and marketing sectors. Fostering marketing and processing by pursuing the following specific objectives: (a) the improvement of market organisation for fishery and aquaculture products; (b) the encouragement of investment in the processing and marketing sectors. (6) Fostering the implementation of the IMP.
Article 7 Shared and direct management
1. Measures covered by Title V shall be financed by the EMFF in accordance with the principle of shared management between the Union and Member States and the common rules laid down in Regulation (EU) No 1303/2013. 2. Measures covered by Title VI shall be financed by the EMFF in accordance with the principle of direct management.
Article 8 State aid
1. Without prejudice to paragraph 2 of this Article, Articles 107, 108 and 109 TFEU shall apply to aid granted by Member States to undertakings in the fishery and aquaculture sector. 2. However, Articles 107, 108 and 109 TFEU shall not apply to payments made by Member States pursuant to, and in conformity with, this Regulation falling within the scope of Article 42 TFEU. 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. 4. For the fishery and aquaculture products, listed in Annex I TFEU, to which Articles 107, 108 and 109 thereof apply, the Commission may authorise, in accordance with Article 108 TFEU, operating aid in the outermost regions referred to in Article 349 TFEU within the sectors producing, processing and marketing fishery and aquaculture products, with a view to alleviating the specific constraints in those regions as a result of their isolation, insularity and extreme remoteness.
Article 9 Specific ex ante conditionalities
The specific ex ante conditionalities referred to in Annex IV shall apply to the EMFF.
Article 10 Admissibility of applications
1. An application submitted by an operator for support from the EMFF shall be inadmissible for an identified period of time laid down pursuant to paragraph 4 of this Article, if it has been determined by the competent authority that the operator concerned: (a) has committed a serious infringement under Article 42 of Council Regulation (EC) No 1005/2008 ( 3 ) or Article 90(1) of Regulation (EC) No 1224/2009; (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 vessels flagged to countries identified as non-cooperating third countries as set out in Article 33 of that Regulation; (c) has committed a serious infringement of the CFP rules identified as such in other legislation adopted by the European Parliament and by the Council; or (d) has committed any of the offences set out in Articles 3 and 4 of Directive 2008/99/EC of the European Parliament and of the Council ( 4 ), where the application is made for support under Chapter II of Title V of this Regulation. 2. The beneficiary, after submitting the application, shall continue to comply with the conditions referred to in points (a) to (d) of paragraph 1 throughout the period of implementation of the operation and for a period of five years after the final payment to that beneficiary. 3. An application submitted by an operator shall be inadmissible for an identified period of time laid down pursuant to paragraph 4 of this Article, if it has been determined by the competent authority that that operator has committed a fraud, as defined in Article 1 of the Convention on the protection of the European Communities’ financial interests ( 5 ), in the context of the European Fisheries Fund (EFF) or the EMFF. 4. The Commission shall be empowered to adopt delegated acts in accordance with Article 126 concerning: (a) the identification of the period of time referred to in paragraphs 1 and 3 of this Article which shall be proportionate to the nature, gravity, duration and repetition of the serious infringement, offence or fraud, and shall be of at least one year’s duration; (b) the relevant starting or ending dates of the period of time referred to in paragraphs 1 and 3 of this Article. 5. Member States shall require that operators submitting an application under the EMFF provide to the managing authority a signed statement confirming that they respect the criteria listed in paragraph 1 of this Article and declaring that they have not committed a fraud under the EFF or the EMFF as referred to in paragraph 3 of this Article. Member States shall verify the veracity of that statement before approving the operation, based on the information available in the national register of infringements referred to in Article 93 of Regulation (EC) No 1224/2009, or any other available data. For the purposes of 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.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 10 Admissibility of applications):
An application submitted by an operator for support from the EMFF shall be inadmissible for an identified period of time laid down pursuant to paragraph 4 of this Article, if it has been determined by the competent authority that the operator concerned: 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 vessels flagged to countries identified as non-cooperating third countries as set out in Article 33 of that Regulation; (c) has committed a serious infringement of the CFP rules identified as such in other legislation adopted by the European Parliament and by the Council; or (d) has committed any of the offences set out in Articles 3 and 4 of Directive 2008/99/EC of the European Parliament and of the Council ( 4 ), where the application is made for support under Chapter II of Title V of this Regulation. 2. The beneficiary, after submitting the application, shall continue to comply with the conditions referred to in points (a) to (d) of paragraph 1 throughout the period of implementation of the operation and for a period of five years after the final payment to that beneficiary. 3. An application submitted by an operator shall be inadmissible for an identified period of time laid down pursuant to paragraph 4 of this Article, if it has been determined by the competent authority that that operator has committed a fraud, as defined in Article 1 of the Convention on the protection of the European Communities’ financial interests ( 5 ), in the context of the European Fisheries Fund (EFF) or the EMFF. 4. The Commission shall be empowered to adopt delegated acts in accordance with Article 126 concerning: (a) the identification of the period of time referred to in paragraphs 1 and 3 of this Article which shall be proportionate to the nature, gravity, duration and repetition of the serious infringement, offence or fraud, and shall be of at least one year’s duration; (b) the relevant starting or ending dates of the period of time referred to in paragraphs 1 and 3 of this Article. The Commission shall be empowered to adopt delegated acts in accordance with Article 126 concerning: (a) the identification of the period of time referred to in paragraphs 1 and 3 of this Article which shall be proportionate to the nature, gravity, duration and repetition of the serious infringement, offence or fraud, and shall be of at least one year’s duration; (b) the relevant starting or ending dates of the period of time referred to in paragraphs 1 and 3 of this Article. 5. Member States shall require that operators submitting an application under the EMFF provide to the managing authority a signed statement confirming that they respect the criteria listed in paragraph 1 of this Article and declaring that they have not committed a fraud under the EFF or the EMFF as referred to in paragraph 3 of this Article. Member States shall verify the veracity of that statement before approving the operation, based on the information available in the national register of infringements referred to in Article 93 of Regulation (EC) No 1224/2009, or any other available data. For the purposes of 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.
Article 11 Ineligible operations
The following operations shall not be eligible under the EMFF: (a) operations increasing the fishing capacity of a vessel or equipment increasing the ability of a vessel to find fish; (b) the construction of new fishing vessels or the importation of fishing vessels; (c) the temporary or permanent cessation of fishing activities, unless otherwise provided for in this Regulation; (d) exploratory fishing; (e) the transfer of ownership of a business; (f) direct restocking, unless explicitly provided for as a conservation measure by a Union legal act or in the case of experimental restocking.
Article 12 Budget implementation
1. The Union budget allocated to the EMFF under Title V of this Regulation shall be implemented within the framework of shared management in accordance with Article 4 of Regulation (EU) No 1303/2013. 2. The Union budget allocated to the EMFF under Title VI of this Regulation shall be implemented directly by the Commission in accordance with Article 58(1)(a) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council ( 6 ). 3. Any cancellations of all or part of the budget commitment under direct management by the Commission shall comply with Regulation (EU, Euratom) No 966/2012 and, where appropriate, with Article 123 of this Regulation. 4. The principle of sound financial management shall be applied in accordance with Articles 30 and 53 of Regulation (EU, Euratom) No 966/2012.
Article 13 Budgetary resources under shared management
1. The resources available for commitments from the EMFF for the period from 2014 to 2020 under shared management shall be EUR 5 749 331 600 in current prices in accordance with the annual breakdown set out in Annex II. 2. EUR 4 340 800 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the sustainable development of fisheries, aquaculture and fisheries and aquaculture areas, to marketing and processing-related measures and to technical assistance at the initiative of the Member States under Chapters I, II, III, IV and VII of Title V, with the exception of Article 67. 3. EUR 580 000 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the control and enforcement measures referred to in Article 76. 4. EUR 520 000 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the measures on data collection referred to in Article 77. 5. EUR 192 500 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the compensation of outermost regions under Chapter V of Title V. That compensation shall not exceed, per year: (a) EUR 6 450 000 for the Azores and Madeira; (b) EUR 8 700 000 for the Canary Islands; (c) EUR 12 350 000 for the French outermost regions referred to in Article 349 TFEU. 6. EUR 44 976 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the storage aid referred to in Article 67. 7. EUR 71 055 600 of the budgetary resources referred to in paragraph 1 shall be allocated to measures concerning the IMP referred to in Chapter VIII of Title V. 8. Member States shall have the possibility to use interchangeably the resources available under paragraphs 3 and 4.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 13 Budgetary resources under shared management):
1. The resources available for commitments from the EMFF for the period from 2014 to 2020 under shared management shall be EUR 5 749 331 600 in current prices, in accordance with the annual breakdown set out in Annex II. 2. EUR 580 000 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the control and enforcement measures referred to in Article 76. 3. EUR 520 000 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the measures on data collection referred to in Article 77. EUR 192 500 000 of the budgetary resources referred to in paragraph 1 shall be allocated to the compensation of outermost regions under Chapter V of Title V. That compensation shall not exceed, per year: (a) EUR 6 450 000 for the Azores and Madeira; (b) EUR 8 700 000 for the Canary Islands; (c) EUR 12 350 000 for the French outermost regions referred to in Article 349 TFEU. 5. Member States shall have the possibility of using interchangeably the resources available under paragraphs 2 and 3. 6. 10 % of the budgetary resources referred to in paragraphs 2 and 3 may be allocated to measures related to the mitigation of the COVID‐19 outbreak. 10 % of the budgetary resources referred to in paragraphs 2 and 3 may be allocated to measures related to the mitigation of the COVID‐19 outbreak.
Article 14 Budgetary resources under direct management
1. The resources available for commitments from the EMFF, for the period 2014 to 2020, concerning measures under direct management as specified in Chapters I to III of Title VI shall be EUR 647 275 400 in current prices. 2. For the purposes of Chapters I and II of Title VI, the indicative distribution of funds between the objectives set out in Articles 82 and 85, is set out in Annex III. 3. The Commission may depart from the indicative percentages referred to in paragraph 2 by no more than 5 % of the value of the financial envelope in each case. 4. The Commission shall be empowered to adopt delegated acts, in accordance with Article 126, adjusting the percentages set out in Annex III.
Article 15 Mid-term review
The Commission shall review the implementation of Chapter I and II of Title VI, including the need for adjustments of the indicative distribution of funds as laid down in Annex III, and shall, by 30 June 2017, submit to the European Parliament and to the Council an interim evaluation report on the results obtained and the qualitative and quantitative aspects of the EMFF.
Article 16 Financial distribution for shared management
1. The resources available for commitments by Member States referred to in Article 13(2) to (7) for the period from 2014 to 2020, as set out in the table in Annex II, shall be determined on the basis of the following objective criteria: (a) as regards Title V, with the exception of Articles 76 and 77: (i) the level of employment in the fisheries and marine and fresh water aquaculture sectors, including employment in related processing; (ii) the level of production in the fisheries and marine and fresh water aquaculture sectors, including related processing; and (iii) the share of small–scale coastal fishing fleet in the overall fishing fleet; (b) as regards Articles 76 and 77: (i) the extent of the control tasks of the Member State concerned, taking into account the size of the national fishing fleet and the size of the sea area to be controlled, the volume of the landings and the value of imports from third countries; (ii) the available control resources compared to the extent of the control tasks of the Member State, where available means are determined by taking into account the number of controls conducted at sea and the number of landing inspections; (iii) the extent of the data collections tasks of the Member State concerned, taking into account the size of the national fishing fleet, the volume of the landings and of the aquaculture production, the amount of scientific monitoring activities at sea and the number of surveys the Member State is taking part in; and (iv) the available data collection resources compared to the extent of the data collection tasks of the Member State, where available means are determined by taking into account the human resources and technical means needed to implement the national sampling programme for data collection; (c) as regards all measures, the historical allocations of funds in accordance with Regulation (EC) No 1198/2006 and the historical consumption in accordance with Regulation (EC) No 861/2006. 2. The Commission shall adopt implementing acts setting out the annual breakdown of the global resources per Member State.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 16 Financial distribution for shared management):
2. The Commission shall adopt implementing acts setting out the annual breakdown of the global resources per Member State.
Article 17 Preparation of operational programmes
1. Each Member State shall draw up a single operational programme to implement the Union priorities set out in Article 6 which are to be co–financed by the EMFF. 2. The operational programme shall be established by the Member State following close cooperation with the partners referred to in Article 5 of Regulation (EU) No 1303/2013. 3. For the section of the operational programme referred to in point (o) of Article 18(1), the Commission shall, by 31 May 2014, adopt implementing acts laying down the actual priorities of the Union for enforcement and control policy. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 127(2).
Article 18 Content of the operational programme
1. In addition to the elements referred to in Article 27 of Regulation (EU) No 1303/2013, the operational programme shall include: (a) an analysis of the situation in terms of the strengths, weaknesses, opportunities and threats and the identification of the needs that require to be addressed in the geographical area, including, where relevant, sea basins covered by the programme. The analysis shall be structured around the relevant Union priorities set out in Article 6 of this Regulation and, where applicable, shall be consistent with the multiannual national strategic plan for aquaculture referred to in Article 34 of Regulation (EU) No 1380/2013 and the progress made in achieving good environmental status through the development and implementation of a marine strategy referred to in Article 5 of Directive 2008/56/EC. Specific needs concerning jobs, the environment, the mitigation of, and adaptation to, climate change, and the promotion of innovation shall be assessed in relation to the Union priorities, with a view to identifying the most relevant responses at the level of each of the priorities related to the relevant area; (b) a description of the strategy within the meaning of Article 27 of Regulation (EU) No 1303/2013, which shall demonstrate that: (i) appropriate targets are set for each of the Union priorities that are included in the programme, on the basis of common indicators referred to in Article 109 of this Regulation; (ii) the selection of relevant measures follows logically from each Union priority selected in the programme, taking into account the conclusions of the ex ante evaluation and the analysis referred to in point (a) of this paragraph. As regards the measures for the permanent cessation of fishing activities under Article 34 of this Regulation, the description of the strategy shall include the targets and measures to be taken for the reduction of the fishing capacity in accordance with Article 22 of Regulation (EU) No 1380/2013. A description of the method for the calculation of the compensation to be granted under Articles 33 and 34 of this Regulation shall also be included; (iii) the allocation of financial resources to the Union priorities included in the programme is justifiable and adequate to achieve the targets set; (c) where appropriate, the specific needs of Natura 2000 areas, as established by Council Directive 92/43/EEC ( 7 ), and the contribution of the programme to the establishment of a coherent network of fish stock recovery areas as provided for in Article 8 of Regulation (EU) No 1380/2013; (d) the assessment of the specific ex ante conditionalities referred to in Article 9 of and in Annex IV to this Regulation and, where required, the actions referred to in Article 19(2) of Regulation (EU) No 1303/2013; (e) a description of the performance framework within the meaning of Article 22 of and Annex II to Regulation (EU) No 1303/2013; (f) a list of measures selected organised by Union priorities; (g) a list of criteria applied for selecting the fisheries and aquaculture areas under Chapter III of Title V; (h) a list of selection criteria for community-led local development strategies under Chapter III of Title V; (i) in Member States where over 1 000 vessels can be considered small-scale coastal fishing vessels, an action plan for the development, competitiveness and sustainability of small-scale coastal fishing; (j) the evaluation requirements and the evaluation plan referred to in Article 56 of Regulation (EU) No 1303/2013 and actions to be taken to address identified needs; (k) a financing plan which is to be designed by taking into account Article 20 of Regulation (EU) No 1303/2013 and in accordance with the Commission implementing act referred to in Article 16(2) of this Regulation, comprising: (i) a table setting out the total EMFF contribution planned for each year; (ii) a table setting out the applicable EMFF resources and co-financing rate under the Union priorities set out in Article 6 of this Regulation and for technical assistance; by way of derogation from the general rule laid down in Article 94(2) of this Regulation, that table shall, where applicable, indicate separately the EMFF resources and the co-financing rates which apply for the support referred to in Articles 33, 34, Article 41(2), Articles 67 and 70, points (a) to (d) and (f) to (l) of Article 76(2), point (e) of Article 76(2) and Article 77 of this Regulation; (l) information on the complementarity and coordination with ESI Funds and other relevant Union and national funding instruments; (m) implementing arrangements of the operational programme including: (i) identification of the authorities referred to in Article 123 of Regulation (EU) No 1303/2013 and, for information purposes, a summary describing the management and control system; (ii) a description of the respective roles of the FLAGs, the managing authority or designated body for all implementation tasks relating to the community-led local development strategy; (iii) a description of the monitoring and evaluation procedures, as well as the general composition of the monitoring committee referred to in Article 48 of Regulation (EU) No 1303/2013; (iv) the provisions to ensure that the programme is publicised in accordance with Article 119 of this Regulation; (n) a list of the partners referred to in Article 5 of Regulation (EU) No 1303/2013 and the results of the consultation of those partners; (o) for the objective of ensuring increased compliance through control referred to in Article 6(3)(b), and in accordance with the actual priorities adopted by the Commission pursuant to Article 17(3): (i) a list of the bodies implementing the control, inspection and enforcement system and a brief description of their human and financial resources available for fisheries control, inspection and enforcement, and their major equipment available for fisheries control, inspection and enforcement, in particular the number of vessels, aircraft and helicopters; (ii) the overall objectives of the control measures to be implemented, using common indicators to be set in accordance with Article 109; (iii) specific objectives to be achieved in accordance with the Union priorities set out in Article 6 and a detailed indication by category over the entire programming period; (p) for the objective of collection of data for sustainable fisheries management referred to in point (a) of Article 6(3), and in accordance with the multiannual Union programme referred to in Article 3 of Regulation (EC) No 199/2008: (i) a description of the activities of data collection, in accordance with Article 25(1) of Regulation (EU) No 1380/2013; (ii) a description of the data storage methods, data management and data use; (iii) a description of the capability to achieve sound financial and administrative management of the data collected. The section of the operational programme referred to in point (p) shall be supplemented in accordance with Article 21 of this Regulation. 2. The operational programme shall include the methods for calculating the simplified costs referred to in points (b), (c) and (d) of Article 67(1) of Regulation (EU) No 1303/2013 and additional costs or income foregone in accordance with Article 96 of this Regulation, and the method for calculating compensation in accordance with relevant criteria identified for each of the activities deployed under Article 40(1), Articles 53, 54 and 55, point (f) of Article 56(1) and Article 67 of this Regulation. Where relevant, information on advance payments to FLAGs under Article 62 of this Regulation shall also be included. 3. The Commission shall adopt implementing acts laying down rules for the presentation of the elements described in paragraphs 1 and 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3).
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 18 Content of the operational programme):
In addition to the elements referred to in Article 27 of Regulation (EU) No 1303/2013, the operational programme shall include: (a) an analysis of the situation in terms of the strengths, weaknesses, opportunities and threats and the identification of the needs that require to be addressed in the geographical area, including, where relevant, sea basins covered by the programme. The analysis shall be structured around the relevant Union priorities set out in Article 6 of this Regulation and, where applicable, shall be consistent with the multiannual national strategic plan for aquaculture referred to in Article 34 of Regulation (EU) No 1380/2013 and the progress made in achieving good environmental status through the development and implementation of a marine strategy referred to in Article 5 of Directive 2008/56/EC. Specific needs concerning jobs, the environment, the mitigation of, and adaptation to, climate change, and the promotion of innovation shall be assessed in relation to the Union priorities, with a view to identifying the most relevant responses at the level of each of the priorities related to the relevant area; an analysis of the situation in terms of the strengths, weaknesses, opportunities and threats and the identification of the needs that require to be addressed in the geographical area, including, where relevant, sea basins covered by the programme. The analysis shall be structured around the relevant Union priorities set out in Article 6 of this Regulation and, where applicable, shall be consistent with the multiannual national strategic plan for aquaculture referred to in Article 34 of Regulation (EU) No 1380/2013 and the progress made in achieving good environmental status through the development and implementation of a marine strategy referred to in Article 5 of Directive 2008/56/EC. Specific needs concerning jobs, the environment, the mitigation of, and adaptation to, climate change, and the promotion of innovation shall be assessed in relation to the Union priorities, with a view to identifying the most relevant responses at the level of each of the priorities related to the relevant area; a description of the strategy within the meaning of Article 27 of Regulation (EU) No 1303/2013, which shall demonstrate that: (i) appropriate targets are set for each of the Union priorities that are included in the programme, on the basis of common indicators referred to in Article 109 of this Regulation; the selection of relevant measures follows logically from each Union priority selected in the programme, taking into account the conclusions of the ex ante evaluation and the analysis referred to in point (a) of this paragraph. As regards the measures for the permanent cessation of fishing activities under Article 34 of this Regulation, the description of the strategy shall include the targets and measures to be taken for the reduction of the fishing capacity in accordance with Article 22 of Regulation (EU) No 1380/2013. A description of the method for the calculation of the compensation to be granted under Articles 33 and 34 of this Regulation shall also be included; (iii) the allocation of financial resources to the Union priorities included in the programme is justifiable and adequate to achieve the targets set; (c) where appropriate, the specific needs of Natura 2000 areas, as established by Council Directive 92/43/EEC ( 7 ), and the contribution of the programme to the establishment of a coherent network of fish stock recovery areas as provided for in Article 8 of Regulation (EU) No 1380/2013; the assessment of the specific ex ante conditionalities referred to in Article 9 of and in Annex IV to this Regulation and, where required, the actions referred to in Article 19(2) of Regulation (EU) No 1303/2013; (e) a description of the performance framework within the meaning of Article 22 of and Annex II to Regulation (EU) No 1303/2013; (f) a list of measures selected organised by Union priorities; (g) a list of criteria applied for selecting the fisheries and aquaculture areas under Chapter III of Title V; (h) a list of selection criteria for community-led local development strategies under Chapter III of Title V; (i) in Member States where over 1 000 vessels can be considered small-scale coastal fishing vessels, an action plan for the development, competitiveness and sustainability of small-scale coastal fishing; (j) the evaluation requirements and the evaluation plan referred to in Article 56 of Regulation (EU) No 1303/2013 and actions to be taken to address identified needs; a financing plan which is to be designed by taking into account Article 20 of Regulation (EU) No 1303/2013 and in accordance with the Commission implementing act referred to in Article 16(2) of this Regulation, comprising: (i) a table setting out the total EMFF contribution planned for each year; (l) information on the complementarity and coordination with ESI Funds and other relevant Union and national funding instruments; implementing arrangements of the operational programme including: (i) identification of the authorities referred to in Article 123 of Regulation (EU) No 1303/2013 and, for information purposes, a summary describing the management and control system; (ii) a description of the respective roles of the FLAGs, the managing authority or designated body for all implementation tasks relating to the community-led local development strategy; (iii) a description of the monitoring and evaluation procedures, as well as the general composition of the monitoring committee referred to in Article 48 of Regulation (EU) No 1303/2013; (iv) the provisions to ensure that the programme is publicised in accordance with Article 119 of this Regulation; (n) a list of the partners referred to in Article 5 of Regulation (EU) No 1303/2013 and the results of the consultation of those partners; (i) a list of the bodies implementing the control, inspection and enforcement system and a brief description of their human and financial resources available for fisheries control, inspection and enforcement, and their major equipment available for fisheries control, inspection and enforcement, in particular the number of vessels, aircraft and helicopters; (ii) the overall objectives of the control measures to be implemented, using common indicators to be set in accordance with Article 109; (iii) specific objectives to be achieved in accordance with the Union priorities set out in Article 6 and a detailed indication by category over the entire programming period; a description of the activities of data collection, in accordance with Article 25(1) of Regulation (EU) No 1380/2013; (ii) a description of the data storage methods, data management and data use; (iii) a description of the capability to achieve sound financial and administrative management of the data collected. The section of the operational programme referred to in point (p) shall be supplemented in accordance with Article 21 of this Regulation. 2. The operational programme shall include the methods for calculating the simplified costs referred to in points (b), (c) and (d) of Article 67(1) of Regulation (EU) No 1303/2013 and additional costs or income foregone in accordance with Article 96 of this Regulation, and the method for calculating compensation in accordance with relevant criteria identified for each of the activities deployed under Article 40(1), Articles 53, 54 and 55, point (f) of Article 56(1) and Article 67 of this Regulation. Where relevant, information on advance payments to FLAGs under Article 62 of this Regulation shall also be included. 3. The Commission shall adopt implementing acts laying down rules for the presentation of the elements described in paragraphs 1 and 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3).
Article 19 Approval of the operational programme
1. Subject to Article 29 of Regulation (EU) No 1303/2013, the Commission shall adopt implementing acts approving the operational programme. 2. For the purpose of adopting the implementing acts referred to in paragraph 1 of this Article, the Commission shall examine whether the measures referred to in point (b)(ii) of Article 18(1) are likely to effectively remove the overcapacity identified.
Article 20 Amendment of the operational programme
1. The Commission shall adopt implementing acts approving any amendments to an operational programme 2. In order to adapt to the evolving needs of control, the Commission may, every two years, adopt implementing acts detailing any changes in the priorities of the Union in the enforcement and control policy as referred to in Article 17(3) and the corresponding eligible operations which are to be prioritised. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 127(2). 3. Member States may submit an amendment to their operational programme, taking into account new priorities laid down in implementing acts referred to in paragraph 2 of this Article. In accordance with the principle of proportionality, such amendments to the operational programme shall be subject to a simplified procedure to be adopted in accordance with Article 22(2).
Article 21 Work plans for data collection
1. For the purpose of application of point (p) of Article 18(1) of this Regulation, Member States shall submit to the Commission by electronic means work plans for data collection in accordance with Article 4(4) of Regulation (EC) No 199/2008 by 31 October of the year preceding the year from which the work plan is to apply, unless an existing plan still applies, in which case they shall notify the Commission thereof. The content of those plans shall be consistent with Article 4(2) of that Regulation. 2. The Commission shall adopt implementing acts approving the work plans referred to in paragraph 1 by 31 December of the year preceding the year from which the work plan is to apply.
Article 22 Rules on procedures and timetables
1. The Commission may adopt implementing acts laying down rules on procedures, format and timetables for: (a) the approval of operational programmes; (b) the submission and approval of amendments to operational programmes, including their entry into force and frequency of submission during the programming period; (c) the submission and approval of amendments as referred to in Article 20(3); (d) the submission of work plans for data collection. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3). 2. The procedures and timetables shall be simplified in the case of: (a) amendments to operational programmes concerning a transfer of funds between Union priorities, provided that the funds transferred do not exceed 10 % of the amount allocated to the Union priority; (b) amendments to operational programmes concerning the introduction or withdrawal of measures or types of relevant operations and related information and indicators; (c) amendments to operational programmes concerning changes in the description of measures, including changes of eligibility conditions; (d) amendments referred to in Article 20(3), as well as in the case of any other amendments to the section of the operational programme referred to in point (o) of Article 18(1). 3. Paragraph 2 shall not apply to measures referred to in Articles 33, 34 and Article 41(2).
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 22 Rules on procedures and timetables):
The Commission may adopt implementing acts laying down rules on procedures, format and timetables for: (a) the approval of operational programmes; (b) the submission and approval of amendments to operational programmes, including their entry into force and frequency of submission during the programming period; (c) the submission and approval of amendments as referred to in Article 20(3); (d) the submission of work plans for data collection. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3). The procedures and timetables shall be simplified in the case of: (a) amendments to operational programmes concerning a transfer of funds between Union priorities, provided that the funds transferred do not exceed 10 % of the amount allocated to the Union priority; (b) amendments to operational programmes concerning the introduction or withdrawal of measures or types of relevant operations and related information and indicators; (c) amendments to operational programmes concerning changes in the description of measures, including changes of eligibility conditions; (e) amendments to operational programmes concerning the support referred to in point (d) of Article 33(1), Article 35, Article 44(4a), point (b) of Article 55(1), Articles 57, 66 and 67 and Article 69(3), including the reallocation of financial resources thereto to address the consequences of the COVID‐19 outbreak. 3. Paragraph 2 shall not apply to the support referred to in points (a), (b) and (c) of Article 33(1), Article 34 and Article 41(2).
Article 23 Annual work programme
1. In order to implement Title VI, the Commission shall adopt implementing acts laying down annual work programmes in accordance with the objectives set out in the respective Chapters. For Chapters I and II of Title VI, those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3). 2. The annual work programmes shall include: (a) a description of the activities to be financed and the objectives to be pursued for each activity which shall be in accordance with the objectives laid down in Articles 82 and 85. It shall also contain an indication of the amount allocated to each activity, an indicative implementation timetable, as well as information on their implementation; (b) for grants and related measures, the essential evaluation criteria, which shall be set in a manner that best achieves the objectives pursued by the operational programme, and the maximum rate of co-financing.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 23 Annual work programme):
1. In order to implement Title VI, the Commission shall adopt implementing acts laying down annual work programmes in accordance with the objectives set out in the respective Chapters. For Chapters I and II of Title VI, those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 127(3). 2. The annual work programmes shall include: (a) a description of the activities to be financed and the objectives to be pursued for each activity which shall be in accordance with the objectives laid down in Articles 82 and 85. It shall also contain an indication of the amount allocated to each activity, an indicative implementation timetable, as well as information on their implementation; (b) for grants and related measures, the essential evaluation criteria, which shall be set in a manner that best achieves the objectives pursued by the operational programme, and the maximum rate of co-financing. The annual work programmes shall include: (a) a description of the activities to be financed and the objectives to be pursued for each activity which shall be in accordance with the objectives laid down in Articles 82 and 85. It shall also contain an indication of the amount allocated to each activity, an indicative implementation timetable, as well as information on their implementation; (b) for grants and related measures, the essential evaluation criteria, which shall be set in a manner that best achieves the objectives pursued by the operational programme, and the maximum rate of co-financing.
Article 24 Specific objectives
Support under this Chapter shall contribute to the achievement of the specific objectives under the Union priority set out in Article 6(1).
Article 25 General conditions
1. The owner of a fishing vessel having received support under this Chapter shall not transfer that vessel outside the Union during at least the five years following the date of actual payment of that support to the beneficiary. If a vessel is transferred within that time–frame, sums unduly paid in respect of the operation shall be recovered by the Member State, in an amount proportionate to the period during which the condition set out in the first sentence of this paragraph has not been fulfilled. 2. Operating costs shall not be eligible unless otherwise expressly provided for in this Chapter. 3. The total financial contribution from the EMFF to the measures referred to in Articles 33 and 34 and to the replacement or modernisation of main or ancillary engines referred to in Article 41, shall not exceed the higher of the following two thresholds: (a) EUR 6 000 000 ; or (b) 15 % of the Union financial support allocated by the Member State to the Union priorities set out in Article 6(1), (2) and (5). 4. The total financial contribution from the EMFF to the measures referred to in Article 29(4) shall not exceed 5 % of the Union financial support allocated per Member State. 5. Support to vessel owners granted under Article 33 shall be deducted from support granted to vessel owners under Article 34 for the same vessel.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 25 General conditions):
1. The owner of a fishing vessel having received support under this Chapter shall not transfer that vessel outside the Union during at least the five years following the date of actual payment of that support to the beneficiary. If a vessel is transferred within that time–frame, sums unduly paid in respect of the operation shall be recovered by the Member State, in an amount proportionate to the period during which the condition set out in the first sentence of this paragraph has not been fulfilled. 2. Operating costs shall not be eligible unless otherwise expressly provided for in this Chapter. (a) EUR 6 000 000 ; or (b) 15 % of the Union financial support allocated by the Member State to the Union priorities set out in Article 6(1), (2) and (5). 15 % of the Union financial support allocated by the Member State to the Union priorities set out in Article 6(1), (2) and (5). 4. The total financial contribution from the EMFF to the measures referred to in Article 29(4) shall not exceed 5 % of the Union financial support allocated per Member State. 5. Support to vessel owners granted under Article 33 shall be deducted from support granted to vessel owners under Article 34 for the same vessel.
Article 26 Innovation
1. In order to stimulate innovation in fisheries, the EMFF may support operations aimed at developing or introducing new or substantially improved products and equipment, new or improved processes and techniques, and new or improved management and organisation systems, including at the level of processing and marketing. 2. Operations financed under this Article shall be carried out by, or in collaboration with, a scientific or technical body, recognised by the Member State or the Union. That scientific or technical body shall validate the results of such operations. 3. The results of operations financed under this Article shall be adequately publicised by the Member State in accordance with Article 119.
Article 27 Advisory services
1. In order to improve the overall performance and competitiveness of operators and to promote sustainable fisheries, the EMFF may support: (a) feasibility studies and advisory services that assess the viability of operations potentially eligible for support under this Chapter; (b) the provision of professional advice on environmental sustainability, with a focus on limiting and, where possible, eliminating the negative impact of fishing activities on marine, terrestrial and freshwater ecosystems; (c) the provision of professional advice on business and marketing strategies. 2. The feasibility studies, advisory services and advice referred to in paragraph 1 shall be provided by scientific, academic, professional or technical bodies, or entities providing economic advice that have the required competences. 3. The support referred to in paragraph 1 shall be granted to operators, organisations of fishermen, including producer organisations, or public law bodies. 4. Where the support referred to in paragraph 1 does not exceed the amount of EUR 4 000 , the beneficiary may be selected by means of an accelerated procedure.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 27 Advisory services):
2. The feasibility studies, advisory services and advice referred to in paragraph 1 shall be provided by scientific, academic, professional or technical bodies, or entities providing economic advice that have the required competences. 3. The support referred to in paragraph 1 shall be granted to operators, organisations of fishermen, including producer organisations, or public law bodies. 4. Where the support referred to in paragraph 1 does not exceed the amount of EUR 4 000 , the beneficiary may be selected by means of an accelerated procedure.
Article 28 Partnerships between scientists and fishermen
1. In order to foster the transfer of knowledge between scientists and fishermen, the EMFF may support: (a) the creation of networks, partnership agreements or associations between one or more independent scientific bodies and fishermen, or one or more organisations of fishermen, in which technical bodies may participate; (b) the activities carried out in the framework of the networks, partnership agreements, or associations referred to in point (a). 2. The activities referred to in point (b) of paragraph 1 may cover data collection and management activities, studies, pilot projects, dissemination of knowledge and research results, seminars and best practices. 3. The support referred to in paragraph 1 may be granted to public law bodies, fishermen, organisations of fishermen, FLAGs and non-governmental organisations.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 28 Partnerships between scientists and fishermen):
2. The activities referred to in point (b) of paragraph 1 may cover data collection and management activities, studies, pilot projects, dissemination of knowledge and research results, seminars and best practices. 3. The support referred to in paragraph 1 may be granted to public law bodies, fishermen, organisations of fishermen, FLAGs and non-governmental organisations.
Article 29 Promotion of human capital, job creation and social dialogue
1. In order to promote human capital, job creation and social dialogue, the EMFF may support: (a) professional training, lifelong learning, joint projects, the dissemination of knowledge of an economic, technical, regulatory or scientific nature and of innovative practices, and the acquisition of new professional skills, in particular linked to the sustainable management of marine ecosystems, hygiene, health, safety, activities in the maritime sector, innovation and entrepreneurship; (b) networking and exchange of experiences and best practices between stakeholders, including among organisations promoting equal opportunities between men and women, promoting the role of women in fishing communities and promoting under-represented groups involved in small-scale coastal fishing or in on-foot fishing; (c) social dialogue at Union, national, regional or local level involving fishermen, social partners and other relevant stakeholders. 2. The support referred to in paragraph 1 may also be granted to spouses of self-employed fishermen or, where and in so far as recognised by national law, the life partners of self-employed fishermen, under the conditions laid down in point (b) of Article 2 of Directive 2010/41/EU of the European Parliament and of the Council ( 8 ). 3. The support referred to in point (a) of paragraph 1 may be granted, for a maximum period of two years, for the training of people under 30 years of age, who are recognised as unemployed by the Member State concerned (‘trainees’). Such support shall be limited to training on board a small–scale coastal fishing vessel owned by a professional fisherman of at least 50 years of age, formalised by a contract between the trainee and the owner of the vessel that is recognised by the Member State concerned, including courses on sustainable fishing practices and the conservation of marine biological resources as defined in Regulation (EU) No 1380/2013. The trainee shall be accompanied on board by a professional fisherman of at least 50 years of age. 4. Support under paragraph 3 shall be granted to professional fishermen to cover the trainee’s salary and related charges, and shall be calculated in accordance with Article 67(5) of Regulation (EU) No 1303/2013, taking into account the economic situation and living standards of the Member State concerned. That support shall not exceed a maximum amount of EUR 40 000 for each beneficiary during the programming period.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 29 Promotion of human capital, job creation and social dialogue):
2. The support referred to in paragraph 1 may also be granted to spouses of self-employed fishermen or, where and in so far as recognised by national law, the life partners of self-employed fishermen, under the conditions laid down in point (b) of Article 2 of Directive 2010/41/EU of the European Parliament and of the Council ( 8 ). 3. The support referred to in point (a) of paragraph 1 may be granted, for a maximum period of two years, for the training of people under 30 years of age, who are recognised as unemployed by the Member State concerned (‘trainees’). Such support shall be limited to training on board a small–scale coastal fishing vessel owned by a professional fisherman of at least 50 years of age, formalised by a contract between the trainee and the owner of the vessel that is recognised by the Member State concerned, including courses on sustainable fishing practices and the conservation of marine biological resources as defined in Regulation (EU) No 1380/2013. The trainee shall be accompanied on board by a professional fisherman of at least 50 years of age. 4. Support under paragraph 3 shall be granted to professional fishermen to cover the trainee’s salary and related charges, and shall be calculated in accordance with Article 67(5) of Regulation (EU) No 1303/2013, taking into account the economic situation and living standards of the Member State concerned. That support shall not exceed a maximum amount of EUR 40 000 for each beneficiary during the programming period.
Article 30 Diversification and new forms of income
1. The EMFF may support investments contributing to the diversification of the income of fishermen through the development of complementary activities, including investments on board, angling tourism, restaurants, environmental services related to fishing and educational activities concerning fishing. 2. The support under paragraph 1 shall be granted to fishermen who: (a) submit a business plan for the development of their new activities; and (b) possess adequate professional skills which may be acquired through operations financed under point (a) of Article 29(1). 3. The support under paragraph 1 shall only be granted if the complementary activities relate to the fisherman’s core fishing business. 4. The amount of support granted under paragraph 1 shall not exceed 50 % of the budget foreseen in the business plan for each operation, and shall not exceed a maximum amount of EUR 75 000 for each beneficiary.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 30 Diversification and new forms of income):
1. The EMFF may support investments contributing to the diversification of the income of fishermen through the development of complementary activities, including investments on board, angling tourism, restaurants, environmental services related to fishing and educational activities concerning fishing. 3. The support under paragraph 1 shall only be granted if the complementary activities relate to the fisherman’s core fishing business. 4. The amount of support granted under paragraph 1 shall not exceed 50 % of the budget foreseen in the business plan for each operation, and shall not exceed a maximum amount of EUR 75 000 for each beneficiary.
Article 31 Start-up support for young fishermen
1. The EMFF may provide business start-up support to young fishermen. 2. Support under this Article may be granted only in respect of the first acquisition of a fishing vessel: (a) with an overall length of less than 24 metres; (b) which is equipped for sea fishing; (c) which is between 5 and 30 years old; and (d) which belongs to a fleet segment for which the 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. 3. For the purpose of this Article, the term ‘young fisherman’ means a natural person who seeks to acquire a fishing vessel for the first time and who, at the moment of submitting the application, is under 40 years of age and who has worked for at least five years as fisherman, or has acquired equivalent vocational training. Member States may define further objective criteria to be met by young fishermen in order to be eligible for support under this Article. 4. The support under this Article shall not exceed 25 % of the acquisition cost of the fishing vessel and shall in any event not be higher than EUR 75 000 per young fisherman.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 31 Start-up support for young fishermen):
1. The EMFF may provide business start-up support to young fishermen. 3. For the purpose of this Article, the term ‘young fisherman’ means a natural person who seeks to acquire a fishing vessel for the first time and who, at the moment of submitting the application, is under 40 years of age and who has worked for at least five years as fisherman, or has acquired equivalent vocational training. Member States may define further objective criteria to be met by young fishermen in order to be eligible for support under this Article. 4. The support under this Article shall not exceed 25 % of the acquisition cost of the fishing vessel and shall in any event not be higher than EUR 75 000 per young fisherman.
Article 32 Health and safety
1. In order to improve hygiene, health, safety and working conditions for fishermen, the EMFF may support investments on board or in individual equipment provided that those investments go beyond the requirements under Union or national law. 2. The support under this Article shall be granted to fishermen or owners of fishing vessels. 3. Where the operation consists of an investment on board, the support shall not be granted more than once during the programming period for the same type of investment and for the same fishing vessel. Where the operation consists of an investment in individual equipment, the support shall not be granted more than once during the programming period for the same type of equipment and for the same beneficiary. 4. The Commission shall be empowered to adopt delegated acts, in accordance with Article 126, identifying the types of operations eligible under paragraph 1 of this Article.
Article 33 Temporary cessation of fishing activities
1. The EMFF may support measures for temporary cessation of fishing activities in the following cases: (a) the implementation of Commission measures or Member States emergency measures referred to in Articles 12 and 13, respectively, of Regulation (EU) No 1380/2013 or of conservation measures referred to in Article 7 of that Regulation, including biological recovery periods; (b) a non-renewal of Sustainable fisheries partnership agreements or protocols thereto; (c) where the temporary cessation is provided for in a management plan adopted in accordance with Council Regulation (EC) No 1967/2006 ( 9 ) or in a multiannual plan adopted under Articles 9 and 10 of Regulation (EU) No 1380/2013, where, based on scientific advice, a reduction of fishing effort is needed in order to achieve the objectives referred to in Article 2(2) and point (a) of Article 2(5) of Regulation (EU) No 1380/2013. 2. The support referred to in paragraph 1 may be granted for a maximum duration of six months per vessel during the period from 2014 to 2020. 3. The support referred to in paragraph 1 shall only be granted to: (a) owners of Union fishing vessels which are registered as active and which have carried out fishing activities at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support; or (b) fishermen who have worked at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support on board a Union fishing vessel concerned by the temporary cessation. 4. All fishing activities carried out by the fishing vessel or by the fishermen concerned shall be effectively suspended. The competent authority shall satisfy itself that the fishing vessel concerned has stopped any fishing activities during the period concerned by the temporary cessation.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 33 Temporary cessation of fishing activities):
The EMFF may support measures for the temporary cessation of fishing activities in the following cases: (a) the implementation of Commission measures or Member States emergency measures referred to in Articles 12 and 13, respectively, of Regulation (EU) No 1380/2013 or of conservation measures referred to in Article 7 of that Regulation, including biological recovery periods; (b) a non‐renewal of Sustainable fisheries partnership agreements or protocols thereto; where the temporary cessation of fishing activities occurs between 1 February and 31 December 2020 as a consequence of the COVID‐19 outbreak, including for vessels operating under a Sustainable fisheries partnership agreement. 3. The support referred to in paragraph 1 shall only be granted to: (a) owners of Union fishing vessels which are registered as active and which have carried out fishing activities at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support; or (b) fishermen who have worked at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support on board a Union fishing vessel concerned by the temporary cessation. The support referred to in paragraph 1 shall only be granted to: (a) owners of Union fishing vessels which are registered as active and which have carried out fishing activities at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support; or (b) fishermen who have worked at sea for at least 120 days during the last two calendar years preceding the date of submission of the application for support on board a Union fishing vessel concerned by the temporary cessation. For the purpose of point (d) of paragraph 1, the following derogations shall apply: (a) by way of derogation from point (a) of paragraph 3, where a fishing vessel has been registered in the Union fishing fleet register for less than two years at the date of submission of the application for support, Member States may calculate the minimum days of fishing activities required for that vessel as the proportion of 120 days in the last two calendar years; (b) by way of derogation from point (b) of paragraph 3, where a fisherman has started working on board a Union fishing vessel less than two years prior to the date of submission of the application for support, Member States may calculate the minimum days of work required for that fisherman as the proportion of 120 days in the last two calendar years; (c) by way of derogation from paragraph 3, support shall also be granted to fishermen on foot who have worked at least 120 days during the last two calendar years preceding the date of submission of the application for support. Where a fisherman on foot has started working less than two years prior to the date of submission of the application for support, Member States may calculate the minimum days of work required for that fisherman on foot as the proportion of 120 days in the last two calendar years. 4. All fishing activities carried out by the fishing vessel or by the fishermen concerned shall be effectively suspended. The competent authority shall satisfy itself that the fishing vessel concerned has stopped any fishing activities during the period concerned by the temporary cessation.
Article 34 Permanent cessation of fishing activities
1. The EMFF may support measures for the permanent cessation of fishing activities only when that is achieved through the scrapping of fishing vessels and provided that: (a) such scrapping is included in the operational programme referred to in Article 18; and (b) the permanent cessation is foreseen as a tool of an action plan referred to in Article 22(4) of Regulation (EU) No 1380/2013 indicating that the fleet segment is not effectively balanced with the fishing opportunities available to that segment. 2. Support under paragraph 1 shall be granted to: (a) owners of Union fishing vessels registered as active and which have carried out fishing activities at sea for at least 90 days per year during the last two calendar years preceding the date of submission of the application for support; or (b) fishermen who have worked at sea for at least 90 days per year during the last two calendar years preceding the date of submission of the application for support, on board of a Union fishing vessel concerned by the permanent cessation. 3. The fishermen concerned shall effectively cease all fishing activities. The beneficiary shall provide proof of the effective cessation of fishing activities to the competent authority. The compensation shall be refunded on a pro rata temporis basis where the fisherman returns to a fishing activity within a period of less than two years from the date of submission of the application for support. 4. Support under this Article may be granted until 31 December 2017. 5. Support under this Article shall be paid only after the equivalent capacity has been permanently removed from the Union fishing fleet register and after the fishing licences and authorisations have also been permanently withdrawn. The beneficiary shall be prohibited from registering a new fishing vessel within five years following the receipt of such support. The decrease in capacity as a result of the permanent cessation of fishing activities with public aid shall result in the permanent equivalent reduction of the fishing capacity ceilings set out in Annex II to Regulation (EU) No 1380/2013. 6. By way of derogation from paragraph 1, support may be granted for the permanent cessation of fishing activities without scrapping provided that the vessels retrofit for activities other than commercial fishing. In addition and with a view to preserving maritime heritage, support may be granted for the permanent cessation of fishing activities without scrapping in the case of traditional wooden vessels, provided that such vessels retain a land-based heritage function.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The United Kingdom submitted on 29 March 2017 the notification of its intention to withdraw from the Union pursuant to Article 50 of the Treaty on European Union. This means that, if the Withdrawal Agreement is not ratified, the Union's primary and secondary law will cease to apply to the United Kingdom from 30 March 2019 (‘the withdrawal date’). The United Kingdom will then become a third country. The Commission Communication ‘Preparing for the withdrawal of the United Kingdom from the European Union on 30 March 2019: a Contingency Action Plan’ of 13 November 2018 set out the contingency measures it plans to take if no withdrawal agreement enters into force on the withdrawal date. In that Communication, the Commission listed the actions it considered necessary while recalling that additional actions may be necessary at a later stage. The Communication also presented the six general principles which contingency measures at all levels should comply with. These include the principles that measures should not replicate the benefits of membership of the Union, nor the terms of any transition period, as provided for in the Withdrawal Agreement; they must be temporary in nature and should in principle not go beyond the end of 2019; and they must be unilateral actions of the European Union in pursuit of its interests, and therefore in principle the Union can revoke them at any time. The European Council (Article 50) reiterated its call, on 13 December 2018, for work on preparedness at all levels for the consequences of the United Kingdom's withdrawal to be intensified, taking into account all possible outcomes. The Commission presented a package of measures on 19 December 2018 in response to that call. On 17 and 18 December 2018 the Agriculture and Fisheries Council fixed the fisheries opportunities for 2019. Based on this, and taking into account on-going contacts with Member States on the significant negative impact on the fisheries sector of a withdrawal of the United Kingdom without a withdrawal agreement, and the fact that stakeholders cannot themselves mitigate these adverse consequences, the Commission has concluded that two contingency measures are necessary for the fisheries sector. Alongside this measure to amend the European Maritime and Fisheries Fund, the Commission is proposing a measure on the sustainable management of external fishing fleets. Pursuant to Regulation (EU) No 1380/2013 1 (the CFP Basic Regulation) Union fishing vessels have equal access to Union waters and resources subject to the rules of the Common Fisheries Policy (CFP). As from the withdrawal date, the CFP will no longer apply to the United Kingdom. The United Kingdom waters (12 nautical miles territorial sea and adjacent exclusive economic zone) will then no longer be part of the Union waters. In the absence of any provisions to the contrary, access to each other’s waters would no longer be automatic. The default scenario in the absence of other arrangements is that Union fishing vessels would not be authorised to fish in UK waters anymore and vice versa. The fisheries sector is a key component of the economic life of many coastal regions of the European Union. In view of the considerable uncertainties, in absence of an agreement with the United Kingdom, Union vessels risk losing access to these waters and fishing opportunities therein. This would have immediate significant impacts in terms of fishing activities of the EU fleet, employment and economic returns. The gross added value of fisheries in the EU was 4.5 billion EUR in 2016. About 150.000 jobs depend on fisheries, mostly in coastal areas where employment opportunities are limited. Fishing activities also generate employment in other ancillary sectors: for each fisherman between 0.5 and 1 full time employment equivalent is created in ancillary activities. Member States carry out fishing activities at a value of €585 million in the United Kingdom waters. The overall dependency of 8 Member States 2 on United Kingdom waters averages 14 % of their overall landings, ranging from 50 % for the Belgium fleet to around 1 % for Spain. At the local community level the socio-economic impact can be significant, where fishing vessels are particularly dependent on access to United Kingdom waters. The fisheries sector also links up to ancillary activities upstream and downstream. The impact of a sudden closure of UK waters to Union fishing vessels would therefore be substantial for specific fleet segments, with a strong negative economic impact in certain regions and coastal communities. As regions in several Member States along the Atlantic and North Sea coast would be affected, such an emergency situation requires coordinated solutions at EU level. The scope for mitigating the impacts in this situation would be limited. Current UK catches in Union waters could be reclaimed by Union fishing vessels, but there might not be a complete match in the species concerned. The vessels and fleet segments most heavily impacted by a closure of United Kingdom waters might not be the same ones fishing for the species that would become available in Union waters. Furthermore, there are limits to how much fishing efforts could be redirected from United Kingdom waters to Union waters for reasons related to cost-effectiveness and quality of catches. The requirement for fishing activities to be sustainable could also limit a redirection and concentration of fishing effort in Union waters. These options would therefore only ever be able to partially make up for the economic losses for Union fishing vessels resulting from a loss of access to United Kingdom waters. The economic impacts for the affected EU fleet segments would remain very significant. The European Maritime and Fisheries Fund (EMFF) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council 3 is the fund for the EU's maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; supports coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. Measures are already available under the EMFF Regulation for mitigating the adverse economic effects resulting from the withdrawal of the United Kingdom from the European Union throughout the whole chain of production and marketing. Under shared management, Member States affected by the withdrawal of the United Kingdom from the European Union may decide to redirect available appropriations to any necessary measure mitigating its consequences. However, this discretion is currently limited to some priorities. This would limit the room for manoeuvre Member States have to mitigate the impacts of a closure of United Kingdom waters on their fleets and would limit the effectiveness of those measures. The EMFF Regulation provides detailed rules and arrangements for granting financial compensation to fishermen and owners of fishing vessels in cases of temporary cessation of fishing activities. However, the criteria set to allow for temporary cessation do not allow for compensation due to the withdrawal of a Member State from the European Union and the subsequent loss of access to and fishing opportunities within the waters of that State. In addition to the measures already available under the EMFF Regulation, this proposal introduces the possibility to provide public support for the temporary cessation of fishing activities for fishermen and operators that have significant dependence on access to United Kingdom waters and who are affected by a closure of United Kingdom waters. This measure should be available from the day following that on which Union law ceases to apply to the United Kingdom pursuant to Article 50(3) of the Treaty on European Union. 
Revised version (Article 34 Permanent cessation of fishing activities):
1. The EMFF may support measures for the permanent cessation of fishing activities only when that is achieved through the scrapping of fishing vessels and provided that: (a) such scrapping is included in the operational programme referred to in Article 18; and (b) the permanent cessation is foreseen as a tool of an action plan referred to in Article 22(4) of Regulation (EU) No 1380/2013 indicating that the fleet segment is not effectively balanced with the fishing opportunities available to that segment. 2. Support under paragraph 1 shall be granted to: (a) owners of Union fishing vessels registered as active and which have carried out fishing activities at sea for at least 90 days per year during the last two calendar years preceding the date of submission of the application for support; or (b) fishermen who have worked at sea for at least 90 days per year during the last two calendar years preceding the date of submission of the application for support, on board of a Union fishing vessel concerned by the permanent cessation. 3. The fishermen concerned shall effectively cease all fishing activities. The beneficiary shall provide proof of the effective cessation of fishing activities to the competent authority. The compensation shall be refunded on a pro rata temporis basis where the fisherman returns to a fishing activity within a period of less than two years from the date of submission of the application for support. 4. Support under this Article may be granted until 31 December 2017, unless the permanent cessation measures are adopted in order to achieve the objectives of the multi-annual plan for the conservation and sustainable exploitation of demersal stocks in the western Mediterranean Sea, established by Regulation (EU) 2019/1022 of the European Parliament and of the Council ( 10 ). 4a. Expenditure related to the permanent cessation measures adopted in order to achieve the objectives of Regulation (EU) 2019/1022 shall be eligible for support from the EMFF as from the entry into force of that Regulation. 5. Support under this Article shall be paid only after the equivalent capacity has been permanently removed from the Union fishing fleet register and after the fishing licences and authorisations have also been permanently withdrawn. The beneficiary shall be prohibited from registering a new fishing vessel within five years following the receipt of such support. The decrease in capacity as a result of the permanent cessation of fishing activities with public aid shall result in the permanent equivalent reduction of the fishing capacity ceilings set out in Annex II to Regulation (EU) No 1380/2013. 6. By way of derogation from paragraph 1, support may be granted for the permanent cessation of fishing activities without scrapping provided that the vessels retrofit for activities other than commercial fishing. In addition and with a view to preserving maritime heritage, support may be granted for the permanent cessation of fishing activities without scrapping in the case of traditional wooden vessels, provided that such vessels retain a land-based heritage function.
Article 35 Mutual funds for adverse climatic events and environmental incidents
1. The EMFF may contribute to mutual funds which pay financial compensation to fishermen for economic losses caused by adverse climatic events or by environmental incidents or for the rescue costs for fishermen or fishing vessels in the case of accidents at sea during their fishing activities. 2. For the purpose of paragraph 1, the term ‘mutual fund’ means a scheme accredited by the Member State, in accordance with its national law, which enables affiliated fishermen to insure themselves, whereby compensation payments are made to affiliated fishermen for economic losses caused by the events set out in paragraph 1. 3. Member States shall ensure that overcompensation as a result of the combination of the support under this Article with other Union or national instruments or private insurance schemes is avoided. 4. In order to be eligible for support under this Article, the mutual fund concerned shall: (a) be accredited by the competent authority of the Member State, in accordance with national law; (b) have a transparent policy towards payments into and withdrawals from the fund; and (c) have clear rules attributing responsibility for any debts incurred. 5. Member States shall define the rules for the establishment and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of fishermen for such compensation in the event of adverse climatic events, environmental incidents or accidents at sea referred to in paragraph 1, as well as for the administration and monitoring of compliance with those rules. Member States shall ensure that the fund arrangements provide for penalties in the case of negligence on the part of the fisherman. 6. Adverse climatic events, environmental incidents or accidents at sea referred to in paragraph 1 shall be those that are formally recognised by the competent authority of the Member State concerned as having occurred. 7. The contributions referred to in paragraph 1 shall only relate to the amounts paid by the mutual fund as financial compensation to fishermen. The administrative costs of setting-up the mutual funds shall not be eligible for support. Member States may limit the costs that are eligible for support by applying ceilings per mutual fund. 8. The contributions referred to in paragraph 1 shall only be granted to cover losses caused by the adverse climatic events, environmental incidents or accidents at sea which amount to more than 30 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the preceding three calendar years. 9. No contribution from the EMFF shall be made to the initial capital stock. 10. Where Member States decide to limit the costs that are eligible for support by applying ceilings per mutual fund, they shall provide details and justifications in their operational programmes on those ceilings.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The ecosystem in the Baltic Sea has been in a fragile state for decades. However, it was only in 2019 that scientists warned that the environmental conditions have a much more important impact on Eastern Baltic Cod than previously estimated. This situation is now causing a steep decline of Eastern Baltic cod. The situation is moreover unprecedented as the Eastern Baltic cod stock is the only stock in European waters for which ICES assesses natural mortality from environmental pressures to be about three times higher than fishing mortality. No other fish stock in European waters is in such a situation. The Eastern Baltic cod stock is not expected to recover before 2024, even with no fishing at all. Therefore given the above situation, this year, acting upon the best available scientific advice and in accordance with the rules of the Common Fisheries Policy and the Multiannual Plan for the Baltic Sea (hereafter “Baltic MAP”), the Commission adopted first emergency measures in July 2019 prohibiting the fishing of Eastern Baltic cod until year-end; and secondly, the Council decided in October 2019 on necessary and unprecedented fishing restrictions for 2020. However, a recovery can nevertheless not be expected for several years. These exceptional measures will therefore lead to redundant fleet capacities and to severe adverse socio-economic consequences for the related coastal communities and fishing businesses. The fisheries sector is a key component of the economic life of many coastal regions in the Baltic Sea. However, the quota uptake for Eastern Baltic cod has been relatively low (below 60%) for many years; in 2018 the uptake was only 40% and even lower in 2019 up until mid-July when the Commission’s emergency measures kicked in (19%). The relatively low quota uptake already in 2018 may well have been a first sign of the bad environmental situation and the high impact it has on Eastern Baltic cod. Commission analysis shows that the fleet segments with the highest dependency on Eastern Baltic cod encompass more than 300 vessels, mainly trawlers and netters in Lithuania, Latvia and Poland, and to a lesser extent Denmark. Of these, only a minority seem resilient enough to survive a short-term – but not a medium or long-term – closure. The rest either suffer already from a poor situation that will be worsened by the closure or will see their profitability completely erode. These fleet segments are of significant socioeconomic importance, representing between roughly 20% and 50% of the respective national fleet in Lithuania, Latvia and Poland, expressed in full-time equivalents. Given the total closure of any directed fishery for Eastern Baltic cod and the strong reductions agreed for other Baltic stocks by the Council on 14-15 October 2019, the vessels and fleet segments most heavily impacted by the closure of the targeted Eastern Baltic cod fishery will not all be able to redirect their fishing activities to other species. The closure will have a substantial impact for the Eastern Baltic cod fleets, with a strong negative impact in certain regions and coastal communities. Based on this and taking into account on-going contacts with the Member States on the significant negative impact of this situation on the fisheries sector and the fact that stakeholders cannot themselves mitigate the adverse consequences, the Commission concluded that contingency measures are necessary for the fisheries sector. The contingency measures consist in introducing a capacity ceiling for the Member States in the Baltic Sea whose fleets are affected by the adverse situation for Eastern Baltic cod and a capacity exit regime for fleets formerly fishing on Eastern Baltic cod. The European Maritime and Fisheries Fund (hereafter “EMFF”) established by Regulation (EU) No 508/2014 of the European Parliament and of the Council is the fund for the EU’s maritime and fisheries policies for 2014-2020. It is one of the five European Structural and Investment (ESI) Funds, which complement each other and seek to promote a growth and job based recovery in Europe. The fund helps fishermen in the transition to sustainable fishing; support coastal communities in diversifying their economies and finances projects that create new jobs and improve quality of life along European coasts. This fund should hence provide the possibility to the Member States affected by the exceptional situation of Eastern Baltic cod to grant financial support for achieving and maintaining a balance between the fleet capacity and the fishing opportunities by making financial support for permanent cessation of fishing activities through scrapping eligible under the EMFF 2014-2020. This support was granted until end of 2017 (and has been recently introduced for the multiannual plan in the western Mediterranean Sea). Introducing decommissioning in the form of scrapping again is an unforeseen measure in response to an exceptional situation of Eastern Baltic cod. The fund should therefore provide for additional flexibility in this exceptional situation by allowing the same Member States to redirect available appropriations for storage aid and Integrated Maritime Policy inside the financial envelope of each Member State to the permanent cessation of fishing activities with a view to reinforce the need to scrap vessels, while at the same time not negatively impacting the achievements of other CFP objectives and the implementation of the EMFF. This proposal hence aims at the sustainable management of Baltic Sea fish stocks by reducing redundant fleet capacities in the Eastern Baltic cod fishery. Moreover, the Member States and the Commission share the view that urgent action is needed to tackle the root causes of that critical environmental and social situation. This implies addressing with an increased determination the key environmental pressures in the Baltic Sea area that are preventing a recovery of Eastern Baltic cod, and to reduce the structural imbalance in the fleet capacity of fleets formerly targeting Eastern Baltic cod. This proposal therefore introduces the possibility to provide public support for the permanent cessation of fishing activities through scrapping for fishermen and operators that have significant dependence on Eastern Baltic cod and who are affected by the closure of the Eastern Baltic cod fishery. In order to ensure the consistency of fleet structural adaptation in the Baltic Sea with the conservation objectives laid down in the Multiannual Management Plan, support for the permanent cessation of fishing activities through the scrapping of fishing vessels that have significant dependence on Eastern Baltic cod should be strictly conditional and linked to the achievement of the adjustment targets and tools defined in the action plans for imbalanced segments. Finally, additional control measures should be introduced and the collection of relevant data improved. 
Revised version (Article 35 Mutual funds for public health crises, adverse climatic events and environmental incidents):
1. The EMFF may contribute to mutual funds which pay financial compensation to fishermen for economic losses caused by public health crises, adverse climatic events or by environmental incidents or for the rescue costs for fishermen or fishing vessels in the case of accidents at sea during their fishing activities. 2. For the purpose of paragraph 1, the term ‘mutual fund’ means a scheme accredited by the Member State, in accordance with its national law, which enables affiliated fishermen to insure themselves, whereby compensation payments are made to affiliated fishermen for economic losses caused by the events set out in paragraph 1. 3. Member States shall ensure that overcompensation as a result of the combination of the support under this Article with other Union or national instruments or private insurance schemes is avoided. In order to be eligible for support under this Article, the mutual fund concerned shall: (a) be accredited by the competent authority of the Member State, in accordance with national law; (b) have a transparent policy towards payments into and withdrawals from the fund; and (c) have clear rules attributing responsibility for any debts incurred. 5. Member States shall define the rules for the establishment and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of fishermen for such compensation in the event of public health crises, adverse climatic events, environmental incidents or accidents at sea as referred to in paragraph 1, as well as for the administration and monitoring of compliance with those rules. Member States shall ensure that the fund arrangements provide for penalties in the case of negligence on the part of the fisherman. 6. Public health crises, adverse climatic events, environmental incidents or accidents at sea as referred to in paragraph 1 shall be those that are formally recognised by the competent authority of the Member State concerned as having occurred. 7. The contributions referred to in paragraph 1 shall only relate to the amounts paid by the mutual fund as financial compensation to fishermen. The administrative costs of setting-up the mutual funds shall not be eligible for support. Member States may limit the costs that are eligible for support by applying ceilings per mutual fund. 8. The contributions referred to in paragraph 1 shall only be granted to cover losses caused by public health crises, adverse climatic events, environmental incidents or accidents at sea which amount to more than 30 % of the annual turnover of the business concerned, calculated on the basis of the average turnover of that business over the preceding three calendar years. 9. No contribution from the EMFF shall be made to the initial capital stock. 10. Where Member States decide to limit the costs that are eligible for support by applying ceilings per mutual fund, they shall provide details and justifications in their operational programmes on those ceilings.
Article 36 Support for the systems of allocation of fishing opportunities
1. In order to adapt the fishing activities to the fishing opportunities, the EMFF may support the design, development, monitoring, evaluation and management of the systems for allocating the fishing opportunities. 2. Support under this Article shall be granted to public authorities, legal or natural persons or organisations of fishermen recognised by the Member State, including recognised producer organisations involved in the collective management of the systems referred to in paragraph 1.
Article 37 Support for the design and implementation of conservation measures and regional cooperation
1. In order to ensure the efficient design and implementation of conservation measures under Articles 7, 8 and 11 of Regulation (EU) No 1380/2013 and regional cooperation under Article 18 of that Regulation, the EMFF may support: (a) the design, development and monitoring of technical and administrative means necessary for the development and implementation of conservation measures and regionalisation; (b) stakeholder participation and cooperation between Member States in designing and implementing conservation measures and regionalisation. 2. The EMFF may support direct restocking under paragraph 1 only when it is provided for as a conservation measure in a Union legal act.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 37 Support for the design and implementation of conservation measures and regional cooperation):
2. The EMFF may support direct restocking under paragraph 1 only when it is provided for as a conservation measure in a Union legal act.
Article 38 Limitation of the impact of fishing on the marine environment and adaptation of fishing to the protection of species
1. In order to reduce the impact of fishing on the marine environment, to foster the gradual elimination of discards and to facilitate the transition to a sustainable exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013, the EMFF may support investments: (a) in equipment improving size selectivity or species selectivity of fishing gear; (b) on board or in equipment that eliminates discards by avoiding and reducing unwanted catches of commercial stocks, or that deals with unwanted catches to be landed in accordance with Article 15 of Regulation (EU) No 1380/2013; (c) in equipment that limits and, where possible, eliminates the physical and biological impacts of fishing on the ecosystem or the sea bed; (d) in equipment that protects gear and catches from mammals and birds protected by Council Directive 92/43/EEC or Directive 2009/147/EC of the European Parliament and of the Council ( 10 ), provided that it does not undermine the selectivity of the fishing gear and that all appropriate measures are introduced to avoid physical damage to the predators. 2. By way of derogation from point (a) of Article 11, in the outermost regions the support referred to in paragraph 1 may be granted for anchored fish aggregating devices, provided that such devices contribute to sustainable and selective fishing. 3. Support shall not be granted more than once during the programming period for the same type of equipment on the same Union fishing vessel. 4. Support shall only be granted where the gear or other equipment referred to in paragraph 1 has a demonstrably better size-selection or a demonstrably lower impact on the ecosystem and on non-target species than the standard gear or other equipment permitted under Union law, or under relevant national law adopted in the context of regionalisation as provided for in Regulation (EU) No 1380/2013. 5. Support shall be granted to: (a) owners of Union fishing vessels which are registered as active vessels and which have carried out fishing activities at sea of at least 60 days during the two calendar years preceding the date of submission of the application for support; (b) fishermen who own the gear to be replaced and who have worked on board of a Union fishing vessel for at least 60 days during the two calendar years preceding the date of submission of the application for support; (c) organisations of fishermen recognised by the Member State.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The military aggression of Russia against Ukraine since 24 February 2022 is impacting on operators of the fishery and aquaculture sector in the Union. The disruption of trade flows of key commodities for the fishery and aquaculture sector from Russia and Ukraine abruptly intensified the increase in prices of key inputs such as energy and raw materials. Trade between Ukraine and the Union is also severely affected by the unavailability of transport, as Ukrainian airports were rendered inoperable because of the Russian attack and all commercial shipping operations in Ukrainian ports have been suspended. The current crisis is likely to have serious consequences for the supply of grain, vegetable oils and white fish from Ukraine and Russia to the Union, leading to a substantial increase in fish feed prices and to shortages of key raw materials. Part of the Union fleet has ceased fishing because of the decrease in profitability of that activity and the impossibility of offsetting the increase in input costs such as soaring prices for energy. The combined impact of the cost increases and shortages is also being felt by the seafood farming and processing sectors. There is therefore significant market disruption, caused by substantial cost increases, and trade disruptions, requiring effective and efficient action.The military aggression of Russia against Ukraine also jeopardises the security of fishing activities carried out by Union fishers in neighbouring areas. This has led to a precautionary interruption of activities in certain areas. In the light of the above, the Commission is proposing an amendment to Regulation (EU) No 508/2014 on the European Maritime and Fisheries Fund (EMFF) by introducing specific measures to alleviate the consequences of the military aggression of Russia against Ukraine on fishing activities and to mitigate the effects of the market disruption caused by that military aggression on the supply chain of fishery and aquaculture products. Expenditure is still eligible for a contribution from that Fund until 31 December 2023. This proposal complements Commission Implementing Decision (EU) 2022/500 of 25 March 2022 establishing the military aggression of Russia against Ukraine as the occurrence of an exceptional event causing a significant disruption of markets, thereby triggering crisis support measures under the European Maritime, Fisheries and Aquaculture Fund (EMFAF). Packages of measures under both the EMFF and the EMFAF maximise the use of available financial resources to support the fisheries, aquaculture and seafood processing sectors in the current crisis. 
Revised version (Article 38 Limitation of the impact of fishing on the marine environment and adaptation of fishing to the protection of species):
2. By way of derogation from point (a) of Article 11, in the outermost regions the support referred to in paragraph 1 may be granted for anchored fish aggregating devices, provided that such devices contribute to sustainable and selective fishing. 3. Support shall not be granted more than once during the programming period for the same type of equipment on the same Union fishing vessel. 4. Support shall only be granted where the gear or other equipment referred to in paragraph 1 has a demonstrably better size-selection or a demonstrably lower impact on the ecosystem and on non-target species than the standard gear or other equipment permitted under Union law, or under relevant national law adopted in the context of regionalisation as provided for in Regulation (EU) No 1380/2013.
Article 39 Innovation linked to the conservation of marine biological resources
1. In order to contribute to the gradual elimination of discards and by–catches and to facilitate the transition to exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013, and to reduce the impact of fishing on the marine environment and the impact of protected predators, the EMFF may support operations aimed at developing or introducing new technical or organisational knowledge that reduces the impact of fishing activities on the environment, including improved fishing techniques and gear selectivity, or aimed at achieving a more sustainable use of marine biological resources and coexistence with protected predators. 2. Operations financed under this Article shall be carried out by, or in collaboration with, a scientific or technical body recognised by the Member State which shall validate the results of such operations. 3. The results of operations financed under this Article shall be adequately publicised by the Member State in accordance with Article 119. 4. Fishing vessels involved in projects financed under this Article shall not exceed 5 % of the number of vessels of the national fleet or 5 % of the national fleet tonnage in gross tonnage, calculated at the time of submission of the application. At the request of a Member State, in duly justified circumstances and on the basis of a recommendation by the Scientific, Technical and Economic Committee for Fisheries (STECF) established by Commission Decision 2005/629/EC ( 11 ), the Commission may approve projects that exceed the limits set out in this paragraph. 5. Operations which do not qualify as fishing for scientific purposes in accordance with Article 33 of Regulation (EC) No 1224/2009 and which consist of testing new fishing gear or techniques shall be carried out within the limits of the fishing opportunities allocated to the Member State concerned. 6. The net revenue generated by the participation of the fishing vessel in the operation shall be deducted from the eligible expenditure of the operation in accordance with Article 65(8) of Regulation (EU) No 1303/2013. 7. For the purpose of paragraph 6, the term ‘net revenue’ means the income of fishermen from the first sale of the fish or shellfish caught during the introduction and testing of the new technical or organisational knowledge less the selling costs such as auction hall fees.