The European Commission triggered a crisis mechanism to provide financial compensation for fishers and aquaculture producers following market disruptions caused by hostilities in the Middle East. Retroactively applying from February 28, this measure assists operators whose livelihoods are being squeezed by rising costs.
Financial support will be drawn from national allocations within the 2021–2027 European Maritime, Fisheries and Aquaculture Fund programme, with the European Union co-financing eligible expenditures.
Member states are responsible for administering the funds and providing direct compensation to businesses, according to the European Commission.
Approximately €760 million ($813 million) remains available for immediate use from an initial €1.3 billion budget. Rising prices for energy and raw materials have forced some fishing vessels to cease operations because of reduced profitability.
The European Commission noted that the sector remains vulnerable due to its dependence on fossil fuels. Under the activated mechanism, national governments can grant compensation for lost income and increased energy costs or offer storage aid to producer organisations.
Storage aid allows organisations to temporarily store products to stabilise market prices during the current disruption. This temporary support is scheduled to remain available for expenditure incurred through the end of 2026.
Complementary state aid measures are also being considered to further support the primary production and initial processing of fish products.
Currently consulting member states, the European Commission said it aims to adopt a temporary framework for this additional support by the end of April.
Attacks on infrastructure and the closure of the Strait of Hormuz since February 28 have significantly increased global oil prices and disrupted trade flows. These events are having a material and lasting impact on the EU fishery and aquaculture sector, according to the European Commission.