1. Subsidies and overcapacity in the EU Implications of the CFP reform By Franz Lamplmair, European Commission, DG Fisheries

2. Outline  What is the CFP?  Overcapacity in the EU  MAGP I – IV  Subsidies before the reform  Reform: a) conservation b) fleet c) subsidies  Results so far / next steps

3. History of MAGP’s  Multi Annual Guidance Programs  MAGP I-III  The LASSEN report  MAGP IV: - weighted approach - capacity and activity reductions

4. History of MAGP’s over 20 years (1983 to 2002) 1983-19861987-19911992-19961997-2002 MAGP I MAPG II MAGP III MAGP IV Capacity Freezing Capacity Reduction 2% Capacity Reduction 15% Capacity Reduction 7%

5. Subsidies before reform 1.Directly to fleet - Construction - Modernisation - Scrapping - Export / joint ventures - reassignment to other purpose than fishing fishing - Tie up schemes 2.Other subsidies to catching sector (…)

6. REDUCTION IN FISHING MORTALITY RECOMMENDED BY SCIENTISTS

7. EVOLUTION OF THE CAPACITY OF THE EU FLEET

8. Problems of MAGP:  Too complicated  Not ambitious enough  Implementation not in « real time »  No taking account of technical progress  Rules on capacity and subsidies in various regulatory texts

9. Results  Reduction of Fleets  Most MS complied with targets But:  Overcapacity continues!

10. The CFP reform: Management  Multi-annual management plans  Recovery plans  New fleet policy  Control  Transparency and stakeholder involvement

11. New fleet policy  Entry /exit regime  Decommissioning in the framework of MAMP’s and recovery plans  No capacity increases possible (safety)  No more capacity-enhancing subsidies

12. Subsidies  For construction: end 2004; stricter entry/exit rule;  For exports: end 2004, stricter conditions  For modernisation: no increase of fishing capacity (no aid for engine replacement);

13. FIFG 94-99 FIFG2000-2006 MAGP III MAGP IV Entry-exit regime Year199219931994199519961997199819992000200120022003200420052006 All fleet has to be measured in GT Extension of MAGP IV Revision of tonnage objectives to take account of re-measurement Conversion of tonnage objectives GRT → GT Re-segmentation of the fleet MAGP III objectives MAGP IV objectives (GRT for tonnage) Capacity withdrawn with aid not to be replaced. Entry-exit regime: capacity cannot increase MAGP IV objectives (expressed in GT* for tonnage) Capacity withdrawn with aid not to be replaced. Capacity built with aid has to be compensated by capacity withdrawn without aid MAGP IV objectives (GT* for tonnage) Capacity withdrawn with aid not to be replaced. No more aid to build vessels Progressive constraints on fleet capacity imposed by EU law

14. MODEL FOR A DECOMMISSIONING SCHEME

15. More information  Web: general: http://europa.eu.int/comm/fisheries/ http://europa.eu.int/comm/fisheries/  Financial aid 94-99: http://europa.eu.int/comm/fisheries/structures/pdf/ exec_navires.pdf http://europa.eu.int/comm/fisheries/structures/pdf/ exec_navires.pdf http://europa.eu.int/comm/fisheries/structures/pdf/ exec_navires.pdf  TAc’s and quotas: http://europa.eu.int/comm/fisheries/doc_et_publ/pu b_en.htm#map http://europa.eu.int/comm/fisheries/doc_et_publ/pu b_en.htm#map http://europa.eu.int/comm/fisheries/doc_et_publ/pu b_en.htm#map  E.mail: Fisheries-Info@cec.eu.int Fisheries-Info@cec.eu.int  Postal: European Commission, DG Fisheries, Communication and Information unit, Rue de la loi 200, B-1043 Brussels