Role of Subsidies in EU Fleet Capacity Management

Abstract

Fisheries in the European Union (EU) continue to be overexploited by an overcapitalised fishing fleet, despite the best intentions of two decades of capacity adjustment programmes. This paper considers the progress of fishing capacity under the Multi-annual Guidance Programme and examines the impact of subsidies made available to the fishing industry. The underlying reasons for the modest impact on improved resource sustainability are considered, despite capacity reductions in nominal terms. These include the impact of subsidies on capacity development and issues surrounding the use of vessel decommissioning. The Danish fishing fleet case serves as an empirical example in this regard. Comments on the future capacity management regime and the role of subsidies in EU fisheries are offered.Common Fisheries Policy, fleet capacity management, subsidies, Danish fishing fleet, D24, H20, Q22, Resource /Energy Economics and Policy,