The European Commission has approved Croatia’s plan to provide EUR 8 million (USD 9.3 million) in financial support to its commercial fishing fleet, which like many is suffering from higher fuel costs caused by the Iran War.
Attacks by Israel and the United States on Iran have led to the closure of the Strait of Hormuz, denying substantial amounts of oil from reaching global consumers and leading to a spike in fuel prices. While U.S. President Donald Trump reported the U.S. and Iran have signed a deal to end the conflict, the existing fuel price increase has still made it more difficult for commercial fishers to operate profitably, and European Union officials have sought to alleviate the shock and ensure their members’ fleets don’t remain tied up to the dock until fuel prices go down.
In April, the European Commission approved the Middle East Crisis Temporary State Aid Framework (METSAF), authorizing member states to offer financial aid to industries impacted most by the fuel crisis. Under the framework, governments can provide financial aid equivalent of up to 70 percent of the increase in fuel costs.
According to the commission, Croatia’s aid scheme – which can cover up to 70 percent of the additional costs with a cap of EUR 50,000 (USD 57,968) per company – falls in line with METSAF.
“The commission found that the scheme is in line with the conditions set out in the METSAF. In particular, aid will be granted based on a scheme with a clear estimated budget, and aid will be provided to temporarily support the development of companies active in primary production of fishery products," the commission said in a release. "The commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest.”
The commission has also approved aid schemes submitted by France and Spain.
