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CONFÉRENCE DES RÉGIONS PÉRIPHÉRIQUES MARITIMES D’EUROPE CONFERENCE OF PERIPHERAL MARITIME REGIONS OF EUROPE

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CRPMPPP120008 B1 GENEMOD050013 A6 APRIL 2013

DRAFT OPINION OF THE CPMR POLITICAL BUREAU (To be approved by the CPMR Political Bureau on 7 June 2013 – Malmö (Skåne, SE) A STRONG AND EFFECTIVE EU BUDGET FOR THE COMMON POLICY (CFP) AND INTEGRATED MARITIME POLICY (IMP)

On 19 May 2013, the Fisheries Committee of the (EP) will be asked to vote on the draft report 1 on the European Maritime and Fisheries Fund 2 (EMFF) for the 2014-2020 programming period. This document will give important indications as to the official position of the European Parliament and the areas of agreement and / or disagreement with the general approach agreed on by Member States at the session of the Agriculture and Fisheries Council on 23 October 2012. In February 2012, the Political Bureau of the Conference of Peripheral Maritime Regions of Europe (CPMR) approved a policy position on the main funding priorities that should be supported by the EMFF during the 2014-2020 programming period. The present policy position is designed to take into account the latest developments in the political debate on the future European Maritime and Fisheries Fund, while respecting the political scope already decided in 2012. It is addressed mainly to the Trilogue representatives in charge of negotiations on the CFP reform and the future IMP, as well as representatives of national Ministries in charge of maritime affairs.

The Fisheries and Aquaculture sector and the Integrated Maritime Policy (IMP) provide a strategic response to the current economic and financial crisis that is jeopardising Europe and its political project. These sectors are among the main pillars of “blue growth” and constitute the “backbone” of a Europe focused on its seas and increasingly aware of the development opportunities offered by these territories. Over the next decade, the , through the and the EMFF, should be providing support to boost the , firmly established in dynamic and competitive coastal communities, since this is a source of direct and indirect jobs for the regions and an instrument of economic and social cohesion within Europe. (At the same time, the European Union should be shaping an ambitious IMP that serves as catalyst for growth and a driver of development in coastal areas). Such a scenario will not be feasible if the initiatives introduced by Member States and Regions are unable to rely on EU financial support that is commensurate with the challenges to be met, and a clear and effective legislative framework. In this regard, the Peripheral Maritime Regions of Europe recall that the proposed budget of €6.5 billion for the EMFF put forward by the represents no more than a “minimum basis” for the 2014 -2020 programming period. In this context, they are concerned about the impacts the current negotiations on the future Multiannual Financial Framework could have on the EMFF and stress the that any proposal to reduce its budget is unacceptable. The CPMR believes that it is essential to develop framework conditions so that the regions can take advantage of the new innovative measures presented by the Common Strategic Framework (CSF) and its multi-fund approach. In this regard, in the context of the negotiations with the European Commission on the design and finalisation of Partnership Contracts, it reminds Member States of the strategic importance of establishing investment priorities for the 2014-2020 period, taking into account the opportunities for growth and development offered by the fisheries and aquaculture sector and the Integrated Maritime Policy.

1 Alain CADEC Report 2 Regulation of the European Parliament and of the Council on the European Maritime and Fisheries Fund Draft Opinion of the CPMR Political Bureau – A strong and Effective EU Budget for the Common Fisheries Policy (CFP) and Integrated Maritime Policy (IMP) – p. 1 Ref: CRPMPPP120008 B1 – April 2013

I. FOR AN AMBITIOUS EMFF BUDGET DESIGNED TO MEET THE CHALLENGES If in the next decade Europe really aims to achieve the goal of building a more competitive, innovative and sustainable fishing industry, it cannot do so without giving the future European Maritime and Fisheries Fund a budget designed to meet to the major socio-economic and environmental challenges. In 2011, in its first proposal on the Multiannual Financial Framework (MFF) for 2014-2020, the European Commission proposed a financial allocation for the maritime component of Heading 2 of about € 6.7 billion. More specifically, if we look at the part of the envelope earmarked for the EMFF, particularly for measures to provide direct support for fishing, aquaculture and the IMP, the European Commission proposes two envelopes of about €5 506,.00 million and €432.00 million respectively. In its policy position approved in February 2012, the CPMR already had the opportunity to underline its doubts and concerns about this budget proposal. In particular as regards the funding proposed for the IMP, the CPMR firstly considered the budget as “a minimum which must be maintained, if not increased”, and secondly, it stressed that “the amount of the EMFF budget devoted to the IMP must be negotiated independently from the budget dedicated to fisheries, and not result in a reduction of the latter, which, at the very least, must be maintained at the level proposed”. The Peripheral Maritime Regions of Europe are closely monitoring the ongoing negotiations on the Multiannual Financial Framework for 2014-2020. In this context, the CPMR supports the approach of the European Parliament - which in March rejected the proposal based on the agreement between the Member States reached on 8 February - and asks the Council to provide Europe and its territories with a bold European budget Moreover, in the context of financial decisions around the future European Maritime and Fisheries Fund, the CPMR highlights not only the unacceptability of any proposal to reduce the envelope proposed by the European Commission, but believes that it may be necessary to revise upwards the budget allocation for the fund, so that the future EMFF can help to establish the micro-economic conditions required for the development of very ambitious plans to ensure the sustainability and competitiveness of the European fishing industry. Finally, to address the specific production and market related challenges that still affect fisheries dependent communities in small European coastal islands, the CPMR is calling on the Trilogue to include indicators reflecting the permanent geographical handicaps of these territories in the criteria for calculating national envelopes of the future EMFF. It also asks to include in the new European Maritime and Fisheries Fund specific measures both in terms of funding (modulation of rates of intensity of aid granted through the EMFF) and in terms of the distribution additional funds.

II. FOR A MORE SUSTAINABLE AND COMPETITIVE FISHING AND AQUACULTURE SECTOR In the current economic climate where the process of structuring the European fishing sector has been affected by a fall in the amount of available capital, a lack of long term economic visibility and sharp increases in fuel prices, financial support granted by the European Union, in particular through the future EMFF, has become a necessary condition for developing a more sustainable and competitive fishing and aquaculture sector over the next decade. In this context and in line with the policy position approved in February 2012, 3, the Peripheral Maritime Regions of Europe ask the Trilogue to:

1. Maintain support for the renewal of the European fleet, which is now too outdated to continue ensuring high levels of hygiene, health and safety on board. In this regard, the CPMR - asks the Trilogue to include among the measures eligible under the EMFF, costs covering the design and construction of prototypes of “vessels of the future”; - welcomes the resolve of the Fisheries Committee of the European Parliament to support the eligibility of investments for the replacement and / or modernisation of ship’s engines (main and auxiliary) under the future EMFF;

2. Maintain under the EMFF aid for business start-ups for young fishermen (set-up or takeover of a fishing business or purchase of a first vessel) as well as aid for diversification into activities that are

3 Réponse de la CRPM à la proposition de la Commission Européenne relative au nouveau Fonds Européen pour les affaires Maritimes et la Pêche (FEAMP) Draft Opinion of the CPMR Political Bureau – A strong and Effective EU Budget for the Common Fisheries Policy (CFP) and Integrated Maritime Policy (IMP) – p. 2 Ref: CRPMPPP120008 B1 – April 2013

complementary to the core fishing and aquaculture activity (eg. pescatourism, ittiturismo , etc.). With regard to aid for young fishermen, although the CPMR welcomes recent progress further to the European policy debate in this area, it asks the Trilogue to increase the ceiling recommended by the Council 4, , so as to fix the maximum amount of EU aid at 100 000 (for each eligible operation or for each young fisherman). In this regard the CPMR recalls that diversification directly related to production activities is the only kind of diversification that can really help to maintain and develop Europe’s fishing and aquaculture industries;

3. Maintain aid for temporary cessation of fishing activities - especially with regard to operations to establish a multi-annual plan, and provided that the temporary cessation is deemed necessary by an recognised scientific expert – with a view to achieving the objectives of Maximum Sustainable Yield (MSY). They also ask to maintain aid for permanent cessation of fishing activities. Regarding this measure, the CPMR agrees with the Council that eligibility for this measure should be linked with reducing the fishing capacity of the fleet, and an equivalent permanent reduction in the capacity ceiling of the fleet segment; 4. Establish the necessary legal requirements so that the EMFF may contribute to underwriting insurance contracts as well establishing a national system for a common fund from which fishermen and fish farmers can get insured and where appropriate, be reimbursed for losses incurred owing to: - natural disasters; - accidental pollution of the marine environment; - equipment damage caused by wild animals and / or predators.

5. Introduce measures to estimate the impacts of climate change on and means for leading to a management model based solely on the ICES ( The International Council For the Exploration of the Sea ) model;

6. Extend the range of beneficiaries described in art. 73 5 (scheme to compensate for additional costs in the outermost regions for and aquaculture products) to all areas covered by art. 349 of the TFEU;

7. Include in the EMFF specific measures to enhance the value of European fisheries and aquaculture products that comply with the high standards of the CFP regulations. In this respect, in order to promote the differentiation of these products compared to imported products and also to give them added value on foreign markets, the CPMR calls for the EMFF to support the development of a European public certification for sea products;

8. Maintain storage aid as advocated by the current European Fisheries Fund (EFF). The CPMR especially calls on the Trilogue to reject the proposal to introduce a sliding scale with a view to phasing out this support by the end of 2019;

9. Advocate economic incentives for operators adopting more sustainable methods aimed especially at avoiding and minimising by-catches. In this regard, the CPMR recalls that encouraging the use of selective gear and fishing practices remains the only sustainable solution from an environmental point of view in order to significantly reduce the unacceptable practice of

10. Prohibit the use of EMFF funding for the processing of undersized species into animal meal in view of developing this industry. In this regard, the CPMR points out that research campaigns are in progress to develop vegetable meal or to cultivate micro-algae and zooplankton, which could replace the use of animal meal, thus providing a solution to the environmental paradoxes that will need to be addressed by the European Union, namely encouraging the development of an economic sector based on catching and landing undersized species;

11. Make eligible under the EMFF the cost of work needed to adapt vessels (to improve vessel stability and crew safety) following the approval of the obligation to land all unwanted catches of commercial stocks or other by-catches. In this regard, the CPMR also recalls the need to propose measures to cover the costs of installing or adapting port facilities to provide temporary storage for landed catches.

4 Art. 32 iii). – Partial General Approach of the Agriculture and Fisheries Council - Brussels, 29 Octobrer 2012 5 Draft Opinion of the CPMR Political Bureau – A strong and Effective EU Budget for the Common Fisheries Policy (CFP) and Integrated Maritime Policy (IMP) – p. 3 Ref: CRPMPPP120008 B1 – April 2013

III. TOWARDS FINANCIAL FOCUSED ON THE TERRITORIES The introduction by the European Commission of a Common Strategic Framework (CSF) for the 2014-2020 programming period provides a good opportunity for structuring and developing Europe’s maritime-based economic sectors. Over the past few months, the CPMR has been closely following negotiations on the CSF. It has especially been watching - and will continue to watch - that developments in the political debate on the thematic priorities of certain funds (EMFF, ERDF, ESF and EAFRD) do not lead to Member States and Regions losing their power to plan investments that directly and indirectly benefit the fishing and aquaculture sectors as well as all initiatives related to the implementation of the IMP. In general, the CPMR believes that the Regions need to be able to play a central role in designing and assisting the implementation of the financial governance underpinning the CSF. In this regard, the CPMR recalls that through the funding for which they are responsible and their general political role in the territories, the Regions have a key role to play to ensure that the activities funded by the different CSF Funds are coherent. In this context, taking into account the way the decentralisation process is progressing in some European countries, the CPMR reminds the Trilogue of the positive impact that could be had by deciding to authorise regionalised programming and management of the future European Maritime and Fisheries Fund (EMFF) in those Member States that so wish. Finally, the CPMR questions the actual capacity of Member States to be able, in the short-term, to meet all the general conditions set out in Annex IV of the draft Common Provisions Regulation 6 for the CSF Funds.

6 2011/0276 () Draft Opinion of the CPMR Political Bureau – A strong and Effective EU Budget for the Common Fisheries Policy (CFP) and Integrated Maritime Policy (IMP) – p. 4 Ref: CRPMPPP120008 B1 – April 2013