EU to look into French government's concessions to fishermen

The European Commission is to examine the French government's measures to help fishermen through the oil price crisis to see …

The European Commission is to examine the French government's measures to help fishermen through the oil price crisis to see if they contravene EU rules on state aid, European officials said yesterday.

The European Agriculture Commissioner, Mr Franz Fischler, raised last week's protest by fishermen in talks with the French Agriculture and Fisheries Minister, Mr Jean Glavany, at an EU ministers' meeting in Biarritz, the officials said.

Commission officials will meet their French counterparts in the coming days to discuss the financial help that Paris offered the fishermen to recompense their increased costs brought about by the rise in world fuel prices.

The commission must decide if the measures are a breach of EU regulations which strictly limit European governments' right to subsidise national industries.

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French fishermen blockaded a number of ports around the country to protest against the oil price rise and won a Fr500 million franc (€76 million) cut in taxes and social security charges. Meanwhile France's transport minister, faced with nationwide refinery blockades over fuel prices, said Europe should deliver a firm and unified message of discontent to oil producing states over surging prices.

As the second day of refinery and fuel depot blockades by truckers and farmers led to rationing at many petrol stations, France's foreign ministry also voiced concern about oil prices, which have hit 10 year highs well above $30 a barrel.

The Transport Minister, Mr Jean-Claude Gayssot, who is negotiating with the protesting truckers and farmers on compensatory fuel tax cuts, said he would like to hear Europe as a group of countries making its message clear to OPEC oil producing nations among others.

The European Central Bank - which monitors oil prices as part of its job of keeping inflation under control in the euro currency zone - should also make its voice heard more loudly, Mr Gayssot said.

"My feeling is that Europe as a bloc - and the ECB as well, because I'd like to hear it on this issue and not just on plans to raise interest rates - should show its determination to discuss the matter, including with OPEC countries," he said.

Mr Gayssot said the message should be that oil producing states "cannot do just anything".

But the German Finance Minister, Mr Hans Eichel, said following talks with his French counterpart, Mr Laurent Fabius, last week that the two men had agreed the issue should be discussed in Versailles.