The European Commission has approved a French government plan to provide an additional EUR 40.5 million (USD 45 million) in financial support to offset higher fuel prices facing commercial fishers, aquaculture businesses, and companies in other fuel-dependent industries.
The ongoing war on Iran, which quickly lead to the closure of the Strait of Hormuz in March, has caused fuel prices to spike around the globe. With fuel typically being the number one operating cost for commercial fishers, the elevated prices have threatened to have a devastating impact on Europe’s fleets. To alleviate the crisis, the European Commission approved the Middle East Crisis Temporary State Aid Framework (METSAF) in April, authorizing European Union (E.U.) member states to compensate businesses in the agriculture, fishery, and transportation industries for their increased fuel costs. METSAF allows governments to provide financial aid equivalent to up to 70 percent of the increase in fuel costs.
As part of a EUR 70 million (USD 81 million) aid package announced in March, the French government offered a EUR 0.20 (USD 0.23) per liter reimbursement for commercial fishers. That aid was initially authorized for just April, but the government has gone on to allocate more funding for the nation’s fishing fleet.
In June, the European Commission approved France’s EUR 212 million (USD 241 million) plan to offset fuel costs for the agriculture and aquaculture sectors.
Now, the commission has approved another 40.5 million scheme that will provide compensation to France’s agricultural, fisheries, aquaculture, and transport companies. This time, the aid will be provided via soft loans guaranteed by the state with a 3.8 percent fixed rate. Eligible companies will be authorized to borrow between EUR 5,000-50,000 (USD 5,561-55,610). The loans will have a maximum duration of 3 years with principal repayments deferred for 12 months.
To date, the European Commission has approved fisheries or aquaculture fuel compensation plans proposed by Spain, France, Croatia, Ireland, Italy, Portugal, Germany, Malta, and Sweden for their fisheries.
