IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 09 May 2011 | Removal date: open ended
Still in force

Financial grant

On 3 march 2011, France notified the EC about its restructuring scheme for the industrial sweet water fishery and pisciculture.
 
The scheme involves two different instruments. On the one hand, direct grants for the relevant firms in difficulty to give them the chance for restructuring. On the other hand, a scheme that is targeted to firms in the process of winding up or conversion in order to clear the market.
 
The amount of state aid is limited to EUR 4.039.000 and will be distributed over 6 years (para. 2 , Letter from the EC to France, Brussels 07.03.2012 c(2012) 1362 fin). The eligibility of the firms will be measured by a 'pre-diagnostic' system that tracks the difficulties in their operations and their current solvency level. The criteria for 'firms in difficulty' are: minimum 75% debt with respect to the equity of the firm and a maximum profitability of 20% over the last 3 years.
 
The scheme foresees a "non-growth condition" meaning that the quantity of fish extracted is not allowed to increase and the strategy is to aim for financial stabilisation of the commercial entities involved instead of a quantitative expansion.
 
The EC argues that a grant or a subsidized loan for a specific sector/enterprise constitutes state aid and is therefore incompatible with the internal market 107(1), if it cannot be justified as an exception with respect to article 107(3).
 
«D'aprčsunejurisprudenceconstante,leséchangescommerciauxsontconsidérés comme affectés lorsque l'entreprise bénéficiaire exerce une activité économique et se trouve en concurrence avec des produits de provenance d'autres Etats membres. Le simplefaitquelacompétitivitéd'uneentreprisesoitrenforcéeparrapportŕdes entreprises concurrentes en obtenant un avantage économique qu'elle n'aurait pas reçu autrement dans l'exercice normal de son activité, indique qu'il y a risque de distorsion de concurrence.
En l'espčce, les poissons et autres organismes aquatiques élevés dans ou pęchés par les entreprises bénéficiaires sont mis en vente sur le territoire de l'Union européenne oů ils sont en concurrence avec d'autres produits similaires provenant d'entreprises de France et d'autres Etats membres. Les entreprises concernées par l'aide sont les acteurs d'un marché européen compétitif sur lequel de nombreux échanges entre Etats membres ont lieu.» (par 50-51, Letter from the EC to France, Brussels 07.03.2012 c(2012) 1362 fin)
 
Hence, the EC confirms the existence of a European market for these fishery products and that the state aid will distort competition on the local level as well as trade between member states.
 
The EC finally concludes that the measure is in line with article 107(1) TFEU, because it can be considered an exception with respect to section 3 of the LDSR (les aides d'Etat au
sauvetage et ŕ la restructuration des entreprises en difficulté) meeting the objectives of the PCP (Réforme de la Pęche Européenne).
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

029 Other animal products
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumpt
030760 Snails, other than sea snails
041 Fish, live, not for human consumption
0301 Live fish.
030111 Freshwater
042 Fish live, fresh or chilled for human consumption
0301 Live fish.
030191 Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster)
030193 Carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus)
030194 Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus orientalis)
030199 Other
0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04.
030211 Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster)
030213 Pacific salmon (Oncorhynchus nerka, Oncorhynchus gorbuscha, Oncorhynchus keta, Oncorhynchus tschawytscha, Oncorhynchus kisutch, Oncorhynchus masou and Oncorhynchus rhodurus)
030214 Atlantic salmon (Salmo salar) and Danube salmon (Hucho hucho)
030219 Other
030221 Halibut (Reinhardtius hippoglossoides, Hippoglossus hippoglossus, Hippoglossus stenolepis)
030223 Sole (Solea spp.)
030224 Turbots (Psetta maxima)
030229 Other
030231 Albacore or longfinned tunas (Thunnus alalunga)
030232 Yellowfin tunas (Thunnus albacares)
030235 Atlantic and Pacific bluefin tunas (Thunnus thynnus, Thunnus orientalis)
030242 Anchovies (Engraulis spp.)
030243 Sardines (Sardina pilchardus, Sardinops spp.), sardinella (Sardinella spp.), brisling or sprats (Sprattus sprattus)
030244 Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)
030245 Jack and horse mackerel (Trachurus spp.)
030247 Swordfish (Xiphias gladius)
030251 Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
030252 Haddock (Melanogrammus aeglefinus)
030253 Coalfish (Pollachius virens)
030254 Hake (Merluccius spp., Urophycis spp.)
030256 Blue whitings (Micromesistius poutassou, Micromesistius australis)
030259 Other
030279 Other
030281 Dogfish and other sharks
030284 Seabass (Dicentrarchus spp.)
030285 Seabream (Sparidae)
030289 Other
043 Crustaceans, live, fresh or chilled
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked crustaceans, whether in shell or not, whether or not cooked before or during the smoking process; crustaceans, in shell, cooked by steaming or by boiling
030621 Rock lobster and other sea crawfish (Palinurus spp., Panulirus spp., Jasus spp.)
030622 Lobsters (Homarus spp.)
030624 Crabs
030625 Norway lobsters (Nephrops norvegicus)
030626 Coldwater shrimps and prawns (Pandalus spp., Crangon crangon)
030627 Other shrimps and prawns
030629 Other, including flours, meals and pellets of crustaceans, fit for human consumption
044 Molluscs live, fresh or chilled
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumpt
030711 Live, fresh or chilled
030721 Live, fresh or chilled
030731 Live, fresh or chilled
030741 Live, fresh or chilled
030751 Live, fresh or chilled
030771 Live, fresh or chilled
030791 Live, fresh or chilled
212 Prepared & preserved fish, crustaceans, molluscs
0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 03.04.
030290 Livers and roes
0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked crustaceans, whether in shell or not, whether or not cooked before or during the smoking process; crustaceans, in shell, cooked by steaming or by boiling
030611 Rock lobster and other sea crawfish (Palinurus spp., Panulirus spp., Jasus spp.)
030612 Lobsters (Homarus spp.)
030614 Crabs
030615 Norway lobsters (Nephrops norvegicus)
030616 Coldwater shrimps and prawns (Pandalus spp., Crangon crangon)
030617 Other shrimps and prawns
030619 Other, including flours, meals and pellets of crustaceans, fit for human consumption
0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumpt
030729 Other
030739 Other
030749 Other
030759 Other
030779 Other
030799 Other

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