THE EUROPEAN Commission will propose a package of measures next week to help poor people cope with rising oil prices - but it is unlikely to agree to raise fishing quotas to aid fishermen.
Fisheries commissioner Joe Borg has rejected the idea of increasing fish quotas to compensate for the oil price rise. But he is considering a range of other measures to help Europe's fishermen. These could include allowing member states to provide more restructuring aid for fishermen who want to leave the industry and other types of grant programmes to provide short-term support.
After its weekly meeting in Brussels yesterday, the EU executive said it would consider adapting sales taxes to boost the attractiveness of energy-efficient products. It will also consider so-called "Robin Hood" taxes, whereby member states levy taxes on oil firms and redistribute the tax to vulnerable groups in society. This idea has been floated by Italy, although there are concerns it would undermine future investment in refinery infrastructure in the oil sector.
The commission has so far refused to give in to demands by fishing organisations and some member states, including Ireland and France, to raise fish quotas.
Ireland, Britain and France have asked the commission to consider raising the cod quota for the Celtic sea at the upcoming Council of Ministers meeting on June 23rd. But Brussels is resisting this request until further independent scientific evidence can be supplied to show cod stocks have recovered from overfishing in the sea south of Ireland.
A commission spokesman said yesterday further restructuring of the EU fleet was required because of declining fish stocks. The oil price rises had created a "necessary moment" to consider adapting to ensure a fisheries sector in Europe in the future.
"The concern is to find a way forward that does not leave people behind but empowers them to move on and the impact of the restructuring is properly cushioned in social and economic terms," he added.
Rising energy prices sparked protests across Europe from groups such as hauliers and fishermen, who argue fuel prices are hurting their livelihoods and threatening their industries' future.
The commission is divided between wanting to help fishermen, who are suffering from the current high fuel prices, and attempting to protect fish stocks, which have collapsed in recent years due to overfishing.
It is due to publish a comprehensive plan next week detailing how states should respond to increased fuel prices. This will be considered by EU leaders at a summit in Brussels, which begins next Thursday. "Rising fuel prices are squeezing the purchasing power of all EU citizens, with the strongest impact on the lowest-income families in Europe," said commission president José Manuel Barroso in a statement. "I believe that through a structured response at the EU level - possibly combined with targeted social policy measures by member states - we can meet the challenge . . . We need to save energy, and to diversify the sources of supply."
The commission said energy prices had risen largely because oil supply was struggling to keep pace with rising global demand, especially in China and India. It said household heating fuel costs had risen 35.2 per cent in the EU in the year to April, with transport fuel up 12.7 per cent.