2014 as regards permanent cessation fleets fishing Eastern Baltic cod - Main contents

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dossier	COM(2019)564 - Amendment Regulation 2016/1139 as regards intro of capacity limits Eastern Baltic cod & Regulation 508/2014 as regards ...
source	COM(2019)564
date	31-10-2019

1. 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.

• Consistency with existing policy provisions in the policy area

The proposal is consistent with the Commission proposal for the next EMFF and with the latest multiannual plan.

• Consistency with other Union policies

The support for scrapping of vessels in the Baltic Sea is currently not eligible for co-financing under the current EMFF regulation, however, it is required for the efficient implementation of the latest multiannual plan.

Moreover, support for permanent cessation of activities for scrapping of vessels was granted until end of 2017 under the EMFF. Support has been introduced recently for the Western Mediterranean Sea (Regulation 2019/1022). In addition to this, the Commission proposal for the next EMFF for the period 2021-2027 includes again the permanent cessation support for scrapping.

Finally, support for temporary cessation of fishing activities in the Baltic Sea has already been granted under the current regulation by EMFF operational programmes ((COM C(2019)6496).

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

• Legal basis

Article 43(2) of the Treaty on the Functioning of the European Union (TFEU).

• Subsidiarity (for non-exclusive competence)

The proposal falls under the Union’s exclusive competence as referred to in Article 3(1)(d) TFEU. The subsidiarity principle therefore does not apply.

• Proportionality

The proposal complies with the proportionality principle for the following reasons.

The Common Fisheries Policy is a common policy. One of its objectives is to ensure that fishing activities are environmentally sustainable in the long-term, but also to achieve economic, social and employment benefits. Based on the best available scientific advice the Union decided on necessary but unprecedented fishing restrictions. These will lead to redundant fleet capacities and result in severe adverse socio-economic consequences for the coastal communities and fishing businesses concerned. Opening the possibility to apply for financial support for permanent cessation through scrapping will contribute to alleviate these adverse socio-economic consequences while at the same time reduce the fleet capacity and the related fishing pressure on the Eastern Baltic cod stock.

• Choice of the instrument

Proposed instrument: amendmend of a Regulation.

This is a proposal for fisheries management on the basis of Article 43(2) TFEU.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

• Ex-post evaluations/fitness checks of existing legislation

This is not applicable due to the exceptional nature of the event necessitating this proposal.

• Stakeholder consultations

The Member States and the relevant stakeholders, notably the Baltic Sea Advisory Council, were consulted on the fishing opportunities for the Baltic Sea for 2020 in the context of the preparation and the negotiation of the relevant regulation. The challenges arising from the redundant fleet capacities and severe adverse socio-economic consequences for the related coastal communities and fishing businesses have been raised by various fisheries stakeholders and Member States. All operators, stakeholders and concerned Member States have emphasized the need to tackle the situation of redundant fleets in a structural manner by granting financial support for achieving and maintaining a balance between the fleet capactiy and the fishing opportunities. To this end they have asked for making European Union financial support for permanent cessation through scrapping eligible under the EMFF 2014-2020.

• Collection and use of expertise

The Union annually seeks scientific advice on the state of important fish stocks in the Baltic Sea from the International Council for the Exploration of the Sea (ICES). From the ICES advice it is apparent that the steep decline of Eastern Baltic cod is likely to remain a problem for the years to come.

• Impact assessment

An impact assessment was carried out for the Commission’s proposal on the European Maritime and Fisheries Fund for the period 2021 to 2027. This impact assessment identified and explained the main challenges and problems to be addressed by the future programme based on findings and evaluations of previous programming periods, new political priorities and emerging problems needing Union intervention. It concluded that the policy must be more targeted and more focussed in order to better address the issue of overcapacity and overfishing in those segments of the EU fishing fleets, which continue to fish stocks at unsustainable levels. Support for the permanent cessation of fishing activities is therefore proposed by the Commission for the next programming period of the EMFF, under tight conditions to ensure that such support is targeted to the achievement of a balance between fishing capacity and available fishing opportunities. This proposal is currently being discussed between the co-legislators. Given the exceptional nature of the situation surrounding Eastern Baltic cod and the fisheries dependant on this fish stock the policy option of permanent cessation of fishing activities through the scrapping of fishing vessels is hence the best option to choose. No materially and legally different policy options are available other than the one proposed.

• Regulatory fitness and simplification

Not applicable.

• Fundamental rights

This proposal has no consequences for the protection of fundamental rights.

4. BUDGETARY IMPLICATIONS

The proposal makes the support of permanent cessation of fishing activities through the scrapping of fishing vessels eligible again under the current EMFF. The related EU funding is to be granted in compliance with the 2014-2020 EMFF operational programmes and the related EMFF Member States financial allocations.

The proposed modification does not imply any changes in the multiannual financial framework, annual ceilings, or for commitments and payments as per Annex I of Regulation (EU) No 1311/2013 ¹ . The proposal may consist of the frontloading of payment appropriations and is budgetary-neutral over the programming period.

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

Not applicable.