The European Commission has sanctioned a French government initiative to distribute an additional €40.5 million (approximately $45 million) in financial assistance aimed at mitigating the impact of soaring fuel prices on commercial fishers, aquaculture businesses, and other fuel-reliant sectors.
The surge in fuel prices has been attributed to the ongoing conflict in Iran, which led to the closure of the Strait of Hormuz in March. As fuel costs represent the highest operational expense for commercial fishers, rising prices pose a significant threat to Europe’s fishing fleets. In response to this situation, the European Commission had earlier approved the Middle East Crisis Temporary State Aid Framework (METSAF) in April, which permits European Union member states to compensate businesses in agriculture, fisheries, and transportation for increased fuel expenses. Under METSAF, governments can provide financial aid covering up to 70 percent of the fuel cost increase.
Additionally, as part of a larger €70 million (approximately $81 million) aid package announced in March, the French government had established a reimbursement program offering €0.20 (about $0.23) per liter to commercial fishers. Initially, this aid was designated for April only, but further funding has since been allocated to support the national fishing fleet.
In June, the Commission had already approved France’s €212 million (around $241 million) financial plan to alleviate fuel costs for the agriculture and aquaculture industries.
With the recent approval of the new €40.5 million aid scheme, France will provide financial support through state-backed soft loans with a fixed interest rate of 3.8 percent. Eligible companies can borrow between €5,000 and €50,000 (roughly $5,561 to $55,610), and these loans will have a maximum repayment period of three years, with principal payments deferred for the first 12 months.
The European Commission has also approved fuel compensation plans for fisheries and aquaculture proposed by several other countries including Spain, Croatia, Ireland, Italy, Portugal, Germany, Malta, and Sweden, as they address the challenges posed by elevated fuel prices.
