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The European Commission has called for the restructuring of the European Union (EU) fishery sector which has been severely hit by surging bunker prices.

Responding to the difficulties currently faced by fishermen, Fisheries Commissioner Joe Borg [pictured] said "We must act now to restructure: I remain convinced that there is a future for European fisheries, but only if Member States, the sector and the Commission work together to create a smaller, more fuel-efficient fleet that is better matched to fishing possibilities."

The move came in response to recent protests by fishermen across Europe against the impact of marine fuel costs and limited fish quotas on their profit margins.

Commissioner Borg said the European Commission was working together with the fishery sector to find a solution, but ruled out fuel subsidies or higher catch allowances to ease the current economic crisis.

"We are monitoring the situation very closely and looking for ways to work with the sector to overcome the serious problems they are now facing to better enable them to undertake the necessary restructuring. False solutions, however, cannot be the way forward. Higher quotas, as some have called for, would be completely counterproductive, serving only to further endanger the stocks that fishermen depend on. Fuel subsidies, besides being illegal, would do absolutely nothing to deal with the underlying problems. On the contrary, they would serve only to perpetuate the problems of the sector and make the crash even greater when it comes," declared Borg.

In 2006, the European Commission carried out an analysis of the difficulties facing the fisheries sector and adopted a communication entitled "Improving the economic situation in the fishing industry" which laid down measures that could be taken by Member States to help their fishing sectors adapt to the higher fuel prices.

The Communication said that operating aid or fuel subsidies were not an appropriate or permissible response to high fuel prices, given that oil prices were likely to remain at high levels in the future.

The Commission has encouraged the Member States to adopt rescue and restructuring plans in order to help fishing fleets affected by the increase in oil prices, whilst also addressing the structural causes of the difficulties – fleet overcapacity and fuel-inefficient equipment and practices.

In a statement released this week, the European Commission says rescue aid should be seen as a short-term aid to keep an ailing enterprise financially afloat for the time necessary to work out a restructuring or liquidation plan. However, it says financial aid should last no longer than six months and be in the form of a reimbursable loan or guarantee.

Support measures put forward by the European Commission include:

* Purchase of equipment to improve fuel efficiency,
* Short term rescue aid to be reimbursed when the restructuring measures are implemented,
* A one-off change in fishing gear resulting in a less fuel-intensive fishing method,
* one-off replacement of the engine under certain conditions.

The Commission says it is prepared to work with Member States to review EFF Operational Programmes to allow more targeted spending and to effect an analysis of the fish supply chain to investigate price inflexibilities.