Annals of the University of Petro șani, Economics, 10(3), 2010, 283-290 283 [601807]

Annals of the University of Petro șani, Economics, 10(3), 2010, 283-290 283

EUROPEAN FISHERIES FUND – NEW DEVELOPMENT
OPPORTUNITIES FOR ROMANIA

CLAUDIA DIANA SAB ĂU-POPA *

ABSTRACT: This article analyses the financial support given by the European Union
to the member states on the purpose of enduri ng development of their fi shing area, as well as
the new development opportunities for Romania. The ma in financing instru ment of the common
fisheries policy is the European Fisheries Fund, which is managed alike the structural funds.
This fund supports the European fisheries and aquaculture area in its effort to adapt a new
fleet, whose competitiveness must be consolidated, and encourages the application of some measures meant to protect and improve the enviro nment. In the case of Romania, the increase
of the European Fisheries Fund’s absorption has become a priority for the Managing Authorities of this Fund, in order to stimulat e the development of the Romanian market for
fishing products, a market having a great potential.

KEY WORDS: fishing; aquaculture; enduring devel opment; European fisheries fund;
financial allowances

JEL CLASSIFICATION: F36, Q22

1. THE COMMON FISHERIES POLICY AND ITS RELATION WITH THE
COMMON AGRICULTURAL POLICY

According to the Treaty of Rome, fish has been defined as an ˝agricultural
product ˝ and the area of fisheries has been initially subordinated to the common
agricultural policy. However, due especially to the initiation of negotiations regarding
the adhesion to the European Community of some states, for whose economical
activities fishing was a very important area and who disposed of significant territorial water (United Kingdom, Ireland, Danemark and Norway), in 1983 there has also been adopted at community level a separate policy of the fisheries area .
The common policy in the fisheries area relies on the common organization of
the markets, agreeing that all European Un ion´s fishermen shall have equally access to
all water of the member states. This polic y pursues to reach a correct balance between

* Lecturer, Ph.D., University of Oradea, Romania, [anonimizat]

284 Sab ău-Popa, C.D.

supply and demand of European fishermen and consumers interest. In order to preserve
the Community´s fishing resources, the Eu ropean Union may provisionally interdict
fisheries in different regions or for certain species. In order to preserve its continually
decreasing resources, the European Union established a maximum number of fish that can be caught from each species and set up a sy stem of quotas similar to that used by
the Common Agricultural Policy (Ghica, 2007). The amplification of the issues in the
field of fisheries was also linked to the enla rgement of the European Union, first of all
to North, including Denmark and Ireland and then to South, including Greece, Spain, Portugal, leading at the end of the ´80s to a doubling of the number of fishermen.
At the beginning of the ´90, the common fisheries policy has been partially reformed, by means of some measures targeti ng the reduction of the fishing capacity of
the European Union, as the analysis showed the persistence of the excessive fisheries
and the continual exhaustion of fishing stoc k in the European water. In 1993, when
there has been created the Financia l Instrument for Fisheries Guidance
, included in the
category of structural funds , the Common Fisheries Policy becomes part of the regional
development policy. Since 1999 , fishing has been included in the reform strategy of the
Common Agricultural Policy , functioning according to the objects and priorities
established for this policy.
In 2002 , when this policy was again reformed , there were introduced measures
of protection and conservation of the aquatic resources , as well as measures of
reduction of the impact of fishing activities on the marine ecosystem. The reform in
2002 identified a series of problems specific to the fishing area , such as the
exaggerated increase of the European fleet in comparison with the decreasing fishing
resources and the lack of confidence between the interested and regulator parts. This
reform assumed as priority the efficiency of fishing activities , offering a modest
standard of living for those practicing these activities and taking into account the consumers’ interests. However
, the fishing industry remains generally less profitable as
it should be , because of the excessive and illega l fishing causing still great losses for
many fishing resources and the still too great dimension of some fleets in comparison
with the available resources (European Commission , 2008b).
In order to consolidate the controls in this area , in 2007 there has been created
a community control agency in the fisheries area. In the current financial framework ,
the common fisheries policy , known also as ˝Blue Europe ˝ is again a separated policy ,
being excluded from the common agricultu ral policy. The objects of the Common
Fisheries Policy are the following: protection of the fish resources against the excessive
fishing , guarantee of a certain income for fishermen , periodical supply for consumers
and processing industry at reasonable prices a nd the lasting exploitation of the aquatic
resources from biologic , ecologic and economic point of view. The main action areas
of the Common Fisheries Policy are: establishing standards guaranteeing that the European Fisheries area endures and doesn’t harm the marine environment; putting at
the national authorities disposal of the instru ments needed for these standards to come
into force and sanctioning the contraveners ; monitoring the Europ ean fishing fleet’s
dimensions and preventing its enlargement; granting financial and technical support for
initiatives being able to contribute to the lastingness of this area by means of the European Fisheries Fund; taking part to ne gotiations in the name of the European

European Fisheries Fund – New Development Opportunities for Romania 285

countries within the international organiza tions and the relations with the third
countries from all over the world; supporting the producers, the processing factories
and the distributors in order they might ge t a fair price and guaranteeing the quality and
safety of the marine products; supporting th e development of a dynamic area of the
aquaculture (farming of fish, seafood and seaw eeds); financing scientific research and
data collection to guarantee a solid basis for the elaboration of policies and decisions.
For the community fishing industry may survive and flourish in the 21st century,
a balance must be restored between the economic interests of this area and the long
term interests of the society, regarding th e existence of healthy water and prosperous
fishing resources. This is the reason why the European Commission initiated in 2009 a reform of the common fisheries policy, di sposing of a public consult on different
subjects, actually an analysis of the achie vements and the deficits of the current
fisheries policy, in order to identify potential ways of futu re actions and to increase the
efficiency regarding the guarantee of economic viability of the European fleet, conservation of fish stocks, harmonizati on with maritime policy and supplies on the
market of the quality food. The European Co mmission has the obligation to review the
conservation elements of the Common Fisher ies Policy and those concerning the fleet
until 2012.

2. THE EUROPEAN FISHERIES FUND – FINANCIAL INSTRUMENT OF THE COMMON FISHERIES POLICY

In order to reach the common fisherie s policy’s objects, the European Union
offers financial support for the restructuring of the fishing area. The governments of the member states have also the possibilit y to offer subsidies for the fishing area,
provided that it shall not distort the competition within member states.
Financial Instrument for Fisheries Guidance (FIFG) created in 1993 , at the
same time with the adhere nce of Finland and Sweden , was meant to contribute to the
establishment of a balance between the fishing resources and their exploitation , to the
reinforcement of the competition of the productive structures and of the viability of producer societies
, to the revival of the regions implied in these activities. The
Financial Instrument for Fisheries Guidance contributed both to the creation of the
regional development policy and the common fi sheries policy. This fund covered the
community programs 1994-1999 and 2000-2006 , the quantum of financial assistance
being forecast at 4.02 billion euro for the lately ended period.
During the program period 2000-2006 , the assistance areas financed by the
Financial Instrument for Fisheries Guidance were the following: transformation and
commercialization of fish products (662 million euro); modernization of the fleet (227
million euro); construction of new ships (482 million euro); support in the effort to
adapt the fishing area, protection of marine regions, promotion of the fishing products
(2.246 million euro); aquaculture developm ent (351 million euro); granting facilities
for fishing ports (54 million euro). The financial allowances for the Financial
Instrument for Fisheries Guidance were related to the size of beneficiary population ,
the size of the territory and its objects. During the period 2000-2006 , the greatest
beneficiary of this fund was Spain (44 ,4% of FIFG) , followed at a great distance by

286 Sab ău-Popa, C.D.

Italy (10 ,2% of the total FIFG) and France (6 ,9% of FIFG). Though in some areas ,
FIFG had an undeniable success , in other areas the results were ambivalent. Some
financing priorities such as aquaculture or economic diversification in the case of
coastal zone communities registered a quite lower rate of absorption , while others were
in conflict (reduction of the fishing efforts and capacities versus the support of modernization and the renewal of older parts of the community fleet). Thus
, one
decided that , instead of the FIFG enlargement , one shall introduce an entirely new
financing instrument of the common fisheries policy. As a result , the European
Fisheries Fund (EFF) has been created , coming into force on the 1st of January 2007 , its
general rules being established by the Co mmission Regulation (EC) no. 498/2007. This
regulation offers financia l support in area such as the fleet’s reorganization , lower scale
fishing , harbour installations , enduring aquaculture , as well as the transformation and
commercialization of fishing and aquaculture products.
EFF is managed as the structural funds. This fund supports the European area of fishing and aquaculture in its effort to adapt a fleet
, whose competition must be
consolidated and encourages the application of certain measures meant to protect and
improve the environment. EFF will come initially into force during the period 2007-2013
, having a total budget of about 4.3 billion euro. The financing possibility is open
for each branches of this area , both for fishing on the sea and on internal water , for
aquaculture companies , organizations of the producers or the transformation or
commercialization of products , as well as for the fishing regions. The allocation
decision of these funds , according to different defined priorities is the obligation of the
member states , on the basis of a national strategic plan , realized in collaboration with
the European Commission. The national strategic plans are then transposed in operational programs approved by the European Commission before coming into force.
The priority axes of EFF intervention are the following:
• Reaching the main objects of common fisher ies policy, mainly the assurance of a
lasting exploitation of fishing resources and the setting of a stable balance between these resources and the capacity of community fishing fleet. Thus, provided a member state decides to cancel the fish ing opportunities, the ships ceasing their
activities benefit from a permanent or temporary support;
• Aquaculture, processing and commercialization, fishing in internal water; there are
given supports for the diversification of new aquaculture species and species offering good commercial perspectives, ecologic aquaculture, processing and
commercialization of fishing and aquaculture products;
• Common interest measures. These represen t activities that are not generally
supported by private area and may comprise the protection and development of the
fauna and aquatic flora, harbours, shelters and docks for ships, development of new
commercial and promotion campaigns;
• Enduring development of fishing areas. The financing of these activities bases on
local development strategies and pursues the support of local communities in the
reduction of their economic dependence on fishing catches;
• Technical assistance. This factor implies studies, reports, information and other activities regarding the application of operational programs.

European Fisheries Fund – New Development Opportunities for Romania 287

Many of the European Fisheries Fund activities continue the FIFG practices, but
some of them are new. The new Fund introduces a series of innovating mechanisms, as
an answer to the evolution of the industry’s necessities, such as the support measures
of the application of recovery and encouragement plans of some new more selective
fishing methods and the financing methods of local strategies for an enduring
development in the fishing areas. Moreover, the member states benefit now from simpler implement regulations and a greater flexibility concerning the application of
eligibility rules and all financial community supports are directed by means of a single
national EFF program, yet not several different past programs (European Commission, Common Fisheries Policies. User Guidance
, 2008).
Another news is that financing is directed at a 75.55% degree to ˝convergence ˝
regions, whose economic situation is under th e European Union´s average level. In the
current programming period the greatest beneficiary of the European Fisheries Fund is still Spain (26% of EFF), followed by Poland (17% of EFF) and Italy (10%). Romania
will receive 5.35% of the EFF budget, directed entirely to ˝convergence ˝ regions. In
figure 1 is presented the evolution of annua l payments made of the main financing
instrument of the common fisheries polic y, EFF, representing on average 80% of the
total payments made by the European Union within the common fisheries policy.

European Fisheries Fund
0100200300400500600700800
199319941995 1996
1997
199819992000 2001
2002
2003 2004 2005 2006
2007 2008 2009million eu r o
00,10,20,30,40,50,60,70,80,91
%
E FF (until 2006,
FIFG)
Share EFF paymentsin total paymentsunder the CommonFisheries Policy

Source: data processed by the author according to the Annual Reports of the Court of Auditors and the
European Union’s annual budgets

Figure 1. The evolution of annual payments made of EFF during the period 1993-2009

During the period 1993-2009, the annual payments within the common fisheries
policy increased on average to 598.3 million euro and the EFF payments (FIFG until 31.12.2006) to the member states were on average 458.2 million euro. At the same
time, the annual payments within the common fisheries policy represented, in the same period, 0.66% of the total payments made by the European Union to the member states, an insignificant percentage reflecting the low importance of this policy within the
European Union’s common policies. In July 2008, the Council adopted certain derogations for a period of 2 years from the regulations of the European Fisheries Fund, in order to facilitate the reorganizati on process of the fleet, as an answer to the

288 Sab ău-Popa, C.D.

global economic crisis, a serious matter because of its consequences. These
derogations included the creation of ad aptation programs of the fleet offering
additional support to encourage significant re duction of fuel consumption in the most
intensive areas of the fleet.

3. NEW DEVELOPMENT OPPORTUNITIES FOR ROMANIAN FISHERIES AREA

In Romania, fishing and aquaculture occupied and still occupies an important role in the fields having national interest. Though the fisheries area contributed and still contributes in a low measure to the GDP, th e importance of this area is due especially
to its social role for the population in the coastal region (the resulted financial
resources support a significant part of the population), by means of its food resources
potential. The strategic outlook presented in the National Strategic Plan for Fishing is expressed as follows: ˝A competitive, modern and dynamic fisheries area, based on
enduring fishing activities and aquaculture taking into accounts the aspects regarding
the protection of environment, so cial development and economic welfare ˝. The
implementation of this strategic outlook can be measured according to the Fisheries
Operational Program, by means of the following impact indicators: the increase of the
competition area (increase of the added value, increase of the productivity); the created
work places or those maintained in the thr ee sub-areas (the fleet of the Black Sea,
aquaculture and fishing in the internal wate r), as well as in the fish processing industry;
the adaptation of fishing capacity.
The Fisheries Operational Program 2007-201 3 is the main financing source, but
it doesn’t represent the only instrument dispos ing the Romanian authorities of for this
area of the economy. In order to contribute to the implementation of the strategic
outlook, the Operational Program set four general objects: competition development and lastingness of the primary fisheries area; market development for fishing products; support of enduring development of the fishing area and the improvement of living
standards in these regions; support of a proper implement of the OP within CFP.
According to the swot analysis made by the program responsible Romanian
authorities, Romania must adapt its fishing fleet so that an enduring balance exists between the fishing capacity and the availa ble resources. Romania wants to keep a
minimum number of ships, estimated at 12-13 modern and permanent ships. The
fishing fleet must be renewed and modernized in order to meet the market’s
necessities, to improve safety on the sea a nd the conservation conditions on board of
the fishing products. There are also required facilities for the development of products quality before their selling, better distribution channel, as well as the promotion of the products resulting from the fishing in internal water. One consider s that the Romanian
fishing products market is developing, the increase of fishing products consumption
representing a necessity that must be satis fied by means of the reduction of import
dependence and the increase of fishing products volume on the internal market.
By means of the SAPARD program, there has been financed the construction of
new fishing products processing unities, but their production capacity is unable to
cover the market’s demand, resulting a necessity of new investments. The diversity of

European Fisheries Fund – New Development Opportunities for Romania 289

the processed fishing products is still quite limited. The main development opportunity
represents the creation of some ˝modern ˝ high quality fishing products and demand by
the consumers, such as the fishing produc ts which can be easily prepared and
consumed. At a lower scale, the coastal fishing, the fishing in the internal water and the
aquaculture, the increase of the added valu e by means of the processing, the direct
commercialization and certain supply activities represent an opportunity for the primary producers. For the moment, the Management Authority for the Operational
Fisheries Program is the Fisheries General Di rection within the Ministry of Agriculture
and Rural Development. These responsibilities have been transferred from the National
Fisheries and Aquaculture Agency to th e Ministry of Agriculture and Rural
Development in August 2009, in order to make efficient the fisher ies funds absorption.
On the 16th March 2009 there was not even 1 euro absorbed from the amount of 230
million euro granted to Romania, because both of the legislative gaps and the difficult
processes to contract the community funds. In the following table it is presented the
financial allowance on the prior axes fo r the Operational Fisheries Program:

Table 1. EFF allowance on the prior axes for the OFP 2007-2013 (million euro)

Priority Total public
contribution EFF
Contribution National
contribution EFF co-
financing
rate
Axis 1: Measures of adaptation of the
community fishing fleet 13,3 9,97 3,32 75%
Axis 2: Aquaculture, fishing in
internal water, processing and
marketing of fishing and aquaculture products 140 105 35 75%
Axis 3: Measures of common interest 40 30 10 75%
Axis 4: Enduring development of
fishing areas 100 75 25 75%
Axis 5 : Technical assistance 14,32 10,74 3,58 75%
Total 307,62 230,71 76,9 75%
Source: Operational Fisheries Pr ogram 2007-2013, Romania, p. 54

We can remark that the major part is granted for axis 2, especially to stimulate
the investments in aquaculture and for axis 5, the selection measure of local fishing
groups. The degree of financial support by EFF is maximum 40% of the value of the
projects regarding the capacities increase and the creation of production unities. For the
projects regarding the investments for group interest, instructions and promotion actions, as well as for pilot project, the support degree is between 80-100%.

Table 2. Annual financial planning for Roma nian Operational Fisheries Program (euro)

Year 2007 2008 2009 2010 2011 2012 2013
EFF 15127527 22157050 30156234 36391468 39257052 42262575 45362301
Total 230714207
Source: Operational Fisheries Pr ogram 2007-2013, Romania, p. 54

290 Sab ău-Popa, C.D.

The challenges of the fisheries area in our country are represented by the
continuation of the adaptation process of the Romanian area of fish processing and
commercialization at European Union sta ndards and the products development being
not only competitive with the import products on the national market, but also finding
customers abroad, as long as Romanian work force is cheap and make this industry
very competitive.

4. CONCLUSIONS

During the last years, the common fisheries policy registered much progress.
Financing has been redirected for the suppor t of industry during the transition period
and for the support of coastal communities during the period of their economic
structure diversification. However, there exist still many areas to be significantly
improved. The fleet’s capacity still ex ceeds a potential enduring harvest, thus
encouraging the excessive fishing, the under-reporting and the illegal or law limit activities. At the moment, a challenge for this policy represents its possible entire
integration in a wider perspective of a cro ss maritime policy. At European Union level
there exists also a concern for a better eco logical and environmental condition of the
seas and oceans, as well as for a better support of the coastal communities affected by
this new approach regarding fishing management.
Common Fisheries Policy is not a set of strict regulations, but a dynamic framework in which member states and inter ested parts may identify and act to reach
the desired fishing industry. In the case of Romania, a priority for the managing
authorities of this fund has become the increas e of the absorption level of the European
Fisheries Fund, in order to stimulate the development of the Romanian market for the fishing products and aquaculture having a great potential.

REFERENCES:

[1]. Ghica, L.A. (coord.) (2007) Enciclopedia Uniunii Europene , Editura Meronia, Bucharest
[2]. Prisecaru, P. (2004) Politici comune ale Uniunii Europene , Editura Economic ă, Bucharest
[3]. Council Regulation (EC) No 1198/2006 of 27 July 2006 on the European Fisheries Fund
[4]. European Commission (2008a) CFP in numbers – Basic information regarding common
fisheries policy , Luxemburg, available online at http://ec.europa.eu/fisheries
[5]. European Commission (2008b) Common Fisheries Policy. User Guidance , Luxemburg,
available online at http://ec.europa.eu/fisheries
[6]. Ministry of Agriculture and Rural Development Operation Fisheries Program, Romania,
2007-2013
[7]. Council Regulation (EC) No 2371/ 2002 regarding the enduring conservation and
exploitation of fishing resources within the common fisheries policy
[8]. Council Regulation (EC) No 1263/1999 of 21 June 1999 on the Financial Instrument for
Fisheries Guidance
[9]. Commission Regulation (EC) No 498/2007 on the 26th of March 2007 establishing some
detailed standards for the application of the Council Regulation (EC) No 1198/2006
regarding the Europ ean Fisheries Fund