What changed

14.10.2024

Mr Johan Van Overtveldt

Chair

Committee on Budgets

BRUSSELS

Subject: Opinion on the 2025 Budget (2024/0176(BUD))

Dear Mr Chair,

Under the procedure referred to above, the Committee on Development has been asked to submit an opinion to your committee. At its meeting of 23 July 2024, the committee decided to send the opinion in the form of a letter.

The Committee on Development considered the matter at its meeting of 10 October 2024. At that meeting, it decided to call on the Committee on Budgets, as the committee responsible, to incorporate the following suggestions into its motion for a resolution.

Yours sincerely,

Barry Andrews

OPINION

A. whereas in a context of geopolitical and economic instability and increasing inequalities, the EU must strengthen and expand its international partnerships and act as a reliable and credible ally in development cooperation and foster dialogue, stability and peace in developing countries as well as in its neighbourhood;

The Committee on Fisheries calls on the Committee on Budgets, as the committee responsible, to incorporate the following into its motion for a resolution:

B. whereas global humanitarian needs in 2025 will continue to intensify due to climate change, increasingly protracted conflicts, record levels of global displacement and economic shocks; whereas according to OCHA 308 million people are projected to need humanitarian assistance by the end of 2024 and the EU must stand ready to prevent entirely avoidable human suffering; whereas additional efforts are needed to broaden the donor base for humanitarian action, in order to address the humanitarian funding gap;

1. Recalls the economic, social and environmental relevance of fisheries, aquaculture and maritime affairs; stresses the strategic role of the Common Fisheries Policy (CFP) not only in ensuring food security and resilience of marine ecosystems and food systems but also in boosting the development of a sustainable and equitable blue economy that develops within ecological limits and upholding the competitiveness of Union fisheries and aquaculture sectors;

C. whereas the scale of the current global food and nutrition insecurity crisis is unprecedented, with levels significantly higher than pre-COVID-19 pandemic figures, and undernutrition responsible for nearly half of all deaths in children under the age of five; whereas, in particular, the already existing acute food insecurity and malnutrition in the Global South have increased since the start of Russia’s war of aggression against Ukraine; whereas the humanitarian needs in Ukraine remain immense;

2. Recalls the effects on the food supply chain, fuel costs and price volatility caused by Russia’s military aggression against Ukraine, as well as its impacts on Union fishing activities and the livelihoods of fishers, especially in the Black Sea;

D. whereas low-income countries in Africa and around the world are increasingly crippled by debt and unable to invest in basic services;

3. Stresses that Russia’s military aggression has led to significant disruptions in trade flows, increased price volatility and an increase in energy prices, which has impacted Union fishing activities and the livelihoods of fishers, especially small-scale fisheries, requiring the use of European Maritime, Fisheries and Aquaculture Fund (EMFAF) crisis measures to mitigate the effects of inflation for fishers, producers and consumers;

E. whereas in its conclusions on EU development aid targets on June 24, the Council underlines human development as a central element in EU external action and international partnership;

4. Highlights that Black Sea fishers, their fishing activities and livelihoods are additionally impacted by drifting sea mines as a result of the Russian aggression in Ukraine;

1. Notes that the mid-term revision of the multiannual financial framework (MFF) as regards Heading 6, Neighbourhood and the world, for the period 2024-2027 resulted in reinforcements to the benefit of the Southern Neighbourhood, the Western Balkans and for migration-related cooperation;

5. Deplores the Russian military aggression towards Ukraine and expresses our full support to Ukraine; expresses concern over the lack of clarity over the consequences of the Commission proposal (2024/0060(COD)) to cut the budget of the EMFAF by 105.000.000 EUR, cuts which could impact the funding of scientific advice, data collection, fisheries control and the contributions to Advisory Councils and Regional Fisheries Management Organisations and therefore encourages the Commission to present an analysis of the clear consequences of this cut and potential other options to ensure proper funding for EU fisheries related actions;

2. Underscores that providing additional resources to new priorities under Heading 6 should not go to the detriment of EU’s partnerships with developing countries; points out that the EU has a key role in taking forward the Agenda 2030 and the SDG commitments; reiterates its concern that the EU is losing influence and visibility to other geopolitical competitors;

6. Recalls that, sustainable management of fishing resources have to be based on the most updated scientific advice, that are directly dependent on accurate fishing data collection, including recreational fisheries, and fisheries control, and without them the sustainability of fisheries management are put in cause;

3. Recalls that continuous and stable EU financial support to developing countries in key areas such as fundamental rights and freedoms, Civil Society Organizations, climate change, food and nutrition security and humanitarian aid are vital for the EU's ongoing commitments to the Agenda 2030, Sustainable Development Goals (SDGs) and its role as a credible player in global development;

7. Insists that special attention must be devoted to the fishing fleets in order to improve safety, working conditions, energy efficiency and environmental sustainability, including renewal of the fleet, in particular of small scale fishing fleet segment, while not excluding vessels above 24 metres in length from funding; reiterates that this can contribute to make the fishing sector more attractive for the younger generations and must not be confused with fleet expansion or increased fishing capacity or ability to catch fish;

4. Points out that only with a balanced and coherent set of policies, supported by ambitious and predictable funding, accompanied with a more efficient development cooperation based on equal responsibilities and partnerships, can the EU effectively provide coherent responses and support to developing countries in tackling their immediate and long-term structural challenges;

8. Urges the Commission to propose actions to increase the global share of sustainable EU aquaculture production that does not impact the food security in third countries, which contributes to the supply of aquatic protein of high quality and with a low carbon footprint; calls on the Member States and the Commission to make full use of the financial resources available for the EMFAF in order to sustainably boost the growth of this sector;

5. Underlines the urgent need of addressing climate change in developing and especially least developed countries and express its concerned that it will have multiplying negative effects leading to more humanitarian crises, e.g. through increasing conflicts and wars;

9. Recalls that fish is rich in protein and therefore has strategic value and is essential for food security; points out capture fisheries are among the lowest impact systems for the production of animal protein;

6. Supports the approach proposed by the Commission to apply pro rata cuts on all operational lines of NDICI-GE and IPA III as the most workable way to dealing with the fallout of the MFF revision, which allows equitably distributing the burden of cuts while maintaining the capacity to plan financial programming for the rest of the MFF especially where the need is the greatest, such as countries in situations of fragility and conflict in line with the commitments set out in the NDICI-GE Regulation;

10. Recalls that, as a result of Brexit, the Union fishing sector is still experiencing considerable economic disruptions especially with regard to the unilateral institution of fishing restricted areas in UK waters, as well as with Norway; calls on the Commission, therefore, as a matter of priority, to secure commensurate compensation to offset the damage suffered by the sector and fishing communities, in particular after the end of transitional period in June 2026;

7. Points out that the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI-GE) Regulation states in Recital 26, that ‘the financial envelopes envisaged for the Neighbourhood and Sub Saharan Africa geographic programmes should only be increased, given the particular priority the Union gives to these regions’; recalls that Article 6, paragraph 2 (a) of the NDICI-GE introduced a reinforced protection for the financial envelopes of the Neighbourhood and Sub-Saharan Africa by setting minimum “at least” amounts for these two regions; urges the Commission and the budgetary authority to respect the balance between the financial envelopes for the two regions and reminds that the minimum amounts should be attained by the end of 2027 - by the end of the MFF;

11. Insists on the need to improve scientific and technical knowledge, including marine social science, in order to ensure the development and use of the most reliable research-based solutions; reiterates the importance of guaranteeing sufficient financial resources for Member States’ and European scientific entities so that they can collect, manage, analyse, use and exchange fisheries sector data and invest in research on innovative, and more selective fishing techniques with technology-openness;

8. Recalls the target for biodiversity spending of 10% for the years 2026 and 2027 and the target for climate spending of 30% in the current MFF as well as the need to fulfil its global financial commitments under the UN framework;

12. Reiterates the need for an ecosystem based approach which covers actions tackling all pressures on marine resources, including proper management of seals and cormorants;

9. Reiterates that, without prejudice to unforeseen circumstances, the commitment within the NDICI-GE to dedicate an indicative 10 % of its financial envelope to actions supporting the management and governance of migration and forced displacement within the objectives of the Instrument should be respected; notes, however, that already 14 % of the funds committed in 2021-2022 contributed to the migration spending target; expects, therefore, regular substantial updates on the migration spending; recalls that the NDICI-GE states in Recital 51 that the 10% target should also include actions to address the root causes of irregular migration and forced displacement when they directly target specific challenges related to migration and forced displacement;

13. Notes that the Black Sea, which has been for decades subject to pressures from manmade activities, has been significantly affected by military activities stemming from the Russian aggression; notes that the primary impacts of the war on coastal and marine ecosystems, including chemical pollution, loud noise, physical damage to habitats from shelling and fortifications, and curtailment of conservation activities directly affect also the territorial waters of the EU Member States, including the area of the Danube Delta, an unparalleled biodiversity hotspot; calls for funding for data collection on the affected ecosystems and populations of species, and for mitigation and corrective and restoration measures where possible;

10. Recalls that Article 30 of the NDICI -GE must be respected in full and in particular the provision that decommitments return to the budget line of origin; reiterates the principles that the NDICI-GE took over with the budgetisation of the European Development Fund in terms of flexibility, carryovers as well as predictability;

14. Highlights the alarming situation of the Baltic Sea where historical overfishing together with long term pollution has created the collapse and near collapse of several stocks; confirms the pressing need for further action to fully implement an ecosystem based approach, including actions aiming at securing biodiverse and healthy marine ecosystems; points out the need for further research and data gathering as well as proper implementation of fisheries rules such as the Control Regulation and the need for proper funding in this regard;

11. Notes with concern that Heading 6 margin is already substantially consumed for 2025, leaving a total of EUR 44,8 million, and that only 17% of the NDICI-GE Cushion - EUR 1,597 million - is available until 2027 for unforeseen circumstances and challenges;

15. Draws attention to the international dimension of the CFP and its economic, social and environmental benefits; calls on the Commission to devote adequate resources to ocean governance; stresses the importance of international cooperation, secure participation of stakeholders as well as facilitate local cooperation with actors in third countries, transparency, traceability and a level playing field for delivering on the Union’s commitments;

12. Notes that the reinforcement and split of the SEAR (Solidarity and Emergency Aid Reserve) through the MFF does not automatically constitute more availabilities for the Humanitarian aid instrument (HUMA); urges the Commission to reserve the 584 million available in EAR for 2025 for reinforcements of HUMA and recalls that the reinforcements from SEAR to HUMA in 2022 amounted to EUR 539 million and in 2023 to 579 million;

16. Pledges its support to the fight against illegal, unreported and unregulated (IUU) fishing; calls therefore for adequate and increased funding for Union policies fighting IUU fishing worldwide, including by strengthening checks on goods at Union borders, targeted development aid and by fostering cooperation with third-countries but also among Member States;

13. In the light of intensifying global humanitarian needs, requests a top-up of HUMA to establish a solid baseline for predictable and principled humanitarian aid; recalls that humanitarian needs in Ukraine will not be covered by the Ukraine Facility and that multiple other conflicts are also expected to require significant resources; requests therefore an increase of EUR 200 million, on top of the Commission Statement of Estimates, to the HUMA budget line; is extremely alarmed by the deepening food insecurity in developing countries, exacerbated by Russia’s war of aggression against Ukraine; reiterates that operations supported from EU humanitarian funding needs to respect humanitarian principles of humanity, impartiality, neutrality, and independence; calls on the Commission to support partner countries in enhancing food security;

17. Calls on the Commission to adequately fund measures aiming to effectively make the Union fleet more fuel efficient and less dependent on fossil fuels; further calls on the Commission to fund research on adapting zero-emission propulsion systems for fishing vessels, such as e-fuels, wind and electric propulsion, having in account different gear types to be used, with a realistic time schedule;)

14. Recalls that DG ECHO humanitarian aid budget in 2022 and 2023 reached an average of EUR 2,4 billion after several reinforcements and that growing needs are expected for 2025; recalls that UN figures as of June 2024 () show that global humanitarian appeals are only 19% funded, leaving a record gap of EUR 36 billion, with the humanitarian system struggling to meet even a fraction of the demands (); underlines the need to increase and broaden the resources for humanitarian action, including the private sector as well as other stakeholders; stresses also the need to enhance the effectiveness and efficiency of the humanitarian framework and to strengthen efforts to reduce humanitarian needs.

18. Encourages Member States to allocate funds from the Recovery and Resilience Facility to support innovation for the decarbonisation of the fishing industry and to finance training programmes contributing to a more skilled workforce while boosting generation renewal;

19. Underlines the role of the European Fisheries Control Agency (EFCA) in ensuring a level playing field for the Union fleet, and especially in discouraging and curbing IUU fishing in European waters and also at a global level; considers that the adoption of the new Control Regulation (EU 2023/2842) implies an important increase in EFCA’s tasks and responsibilities; recognises that the progressive implementation of the new control measures will need some activities in the form of pilot projects and additional budgetary support; calls on the Commission to provide adequate funds to EFCA to tackle the new tasks and activities, including participation to the tripartite working arrangement between the EFCA, the European Maritime Security Agency (EMSA) and the European Border and Coast Guard Agency (Frontex) considering EFCA’s contribution to the new EU Maritime Security Strategy (EUMSS);

20. Stresses that generational renewal, including diversifying the profession and gender mainstreaming, is one of the European fishing sector’s priorities; calls, in this regard, on the Commission to support the mobilisation of budgetary resources to help young people to take up careers in fisheries and the wider sustainable blue economy sector, to make the sector more diverse and to encourage women to join it; further invites the Commission to support the creation of an association of young European fishers;

21. Reiterates the need to provide substantial support for disadvantaged coastal areas and European outermost regions; calls for the Commission to allow financial support for fleet renewal in the European outermost regions by ending the ban on State aid for vessel replacements; recalls that, contrary to the provisions of the EMFAF, this objective has not received any European funding in any region;

22. Stresses the need to provide financial support for the definition of the Marine Protected Areas (MPA) in the outermost regions, in line with the goal of the UN to preserve 30 % of our oceans by 2030, especially for the compensation of potential losses of the affected fishers, and monitoring and management programmes of the regional authorities;

23. Reiterates the need to initiate more effective measures to eliminate barriers for Producer Organisations to fully deliver on their missions by addressing the difficulties for small-scale fisheries Producer Organisations regarding differential treatment by national administrations, be it in terms of Producer Organisation recognition, day-to-day financing, administrative support or eligibility of measures;

24. Reiterates the need to re-establish the POSEI-Fisheries in the Outermost Regions, lost in 2014 with its integration into the European Maritime and Fisheries Fund, in line with the Amaro report on the “Assessment of the new communication of the European Commission on Outermost Regions 2022/2147(INI)”.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The Chair in her capacity as rapporteur for the opinion declares under hisher exclusive responsibility that heshe did not receive input from any entity or person to be mentioned in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

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