The European Commission has approved the Spanish government’s plan to provide EUR 25 million (USD 29 million) in financial support to offset the increase in fuel prices for commercial fishers caused by the Iran War.
The closing of the Strait of Hormuz after U.S. and Israeli strikes on Iran has limited global oil supplies, causing fuel prices to spike. With fuel typically being the biggest operating cost for commercial fishers, the higher prices have hit fleets hard, leading many to consider staying tied to the docks instead of heading out to sea.
To ensure commercial fishers can keep operating, in April the European Commission approved the Middle East Crisis Temporary State Aid Framework (METSAF). The framework authorizes E.U. states to provide financial support to the industries most vulnerable to the high fuel prices, including the fishing sector. The scheme allows governments to compensate fishers for up to 70 percent of the increase in fuel costs.
Spain first announced its plan to provide EUR 25 million in support to its fishers as part of a EUR 877 million (USD 1 billion) package revealed in March.
On 3 June, the European Commission announced that it had approved Spain’s plan under METSAF.
“The commission found that the scheme is in line with the conditions set out in the METSAF,” the commission said in its release. “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 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.”
In May, the European Commission approved France’s plan to distribute EUR 13 million (USD 15 million) in financial aid to its fishers under METSAF.
