EUROPEAN COMMISSION ANNEX. Observations on the Operational Programme for the Development of Fisheries for of the Republic of Cyprus

Transcription

1 EUROPEAN COMMISSION ANNEX Observations on the Operational Programme for the Development of Fisheries for of the Republic of Cyprus CCI 2014 CY 14 MF OP 001 The following observations are made pursuant to Article 29(3) of Regulation No 1303/ (CPR) and are presented following the structure of the EMFF Operational Programme as laid out in the in the Commission template 2. The observations address issues based on the EMFF OP submitted by the Republic of Cyprus on the 21 st of October 2014 (OP). The Republic of Cyprus is asked to provide to the Commission any necessary additional information and, where appropriate, revise the EMFF OP and resubmit the revised version via SFC2014. GENERAL OBSERVATIONS 1. The Commission recognises that the Republic of Cyprus proposes a well-defined strategy for the EMFF OP that closely follows the objectives laid down in the Europe 2020 Strategy 3, addresses the general reform of the Common Fisheries Policy (CFP) laid down in Regulation No 1380/ (CFP Regulation) and the Integrated Maritime 1 Regulation (EU) No 1303/2013 of the European Parliament and the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, , p. 320). 2 Commission Implementing Regulation (EU) No 771/2014 of 14 July 2014 (OJ L 209, , p ). 3 Communication from the Commission, Europe 2020, A strategy for smart, sustainable and inclusive growth (COM(2010)2020 final, ). 4 REGULATION (EU) No 1380/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 December 2013 on the Common Fisheries Policy, amending Council Regulations (EC) No 1954/2003 and (EC) No 1224/2009 and repealing Council Regulations (EC) No 2371/2002 and (EC) No 639/2004 and Council Decision 2004/585/EC (OJ L354, , p. 22). 1

2 Policy (IMP) laid down in Regulation No 1255/ (IMP Regulation) and supports the priorities defined in the Regulation (EU) No 508/ (EMFF Regulation). 2. The Commission also appreciates the concise and focused SWOT analysis and the concentration on specific objectives and a relatively limited number of major initiatives. 3. The Commission welcomes the submission of the Cypriot Annual Report on its Fishing Fleet and of the action plan. The assessment of the report is still pending, so at this stage it cannot be confirmed whether this EMFF-specific ex-ante conditionality has been met. 4. The Commission welcomes the submission of the Multi-Annual Strategic Plan for the sustainable development of Aquaculture. However, in order to fully comply with the exante conditionality on aquaculture, the Commission considers that it is necessary to include in the EMFF OP information that identifies the complementarities with this strategic plan more clearly. 5. The Commission emphasises that given the difficulties encountered in the past for the implementation of Data Collection Framework (DCF), in particular due to the lack of available staff that has already been identified in the SWOT analysis, assurance must be provided by the Cypriot authorities regarding the measures taken to ensure long-term availability of sufficient staff during the programming period for fulfilling both the current and the future obligations under the DCF as well as the ex-ante conditionality for funding under the EMFF. Therefore, the Commission asks the Republic of Cyprus to carry out appropriate revisions of the relevant OP sections to explain how this specific weakness has been addressed. 6. The Commission regrets that a significant number of context indicators are missing while the level of ambition with regard to expected results in specific areas has not been defined. This is most visible from the rather low or in many cases zero values set for result indicators, the relatively moderate target values for output indicators and, in particular cases, the absence of information on how these values were identified (please see sections 2.2, 3.2, 3.3). 7. Please be informed that not all EMFF related delegated acts have been adopted at the time of preparing these observations, therefore the Commission may provide additional or modify current observations depending on the final text of these documents. More details on the above elements are provided in the following chapters. 5 Regulation (EU) No 1255/2011 of the European Parliament and of the Council of 30 November 2011 establishing a Programme to support the further development of an Integrated Maritime Policy (OJ L 321, , p. 1). 6 Regulation (EU) No 508/2014 of the European Parliament and of the Council of 15 May 2014 on the European Maritime and Fisheries Fund and repealing Council Regulations (EC) No 2328/2003, (EC) No 861/2006, (EC) No 1198/2006 and (EC) No 791/2007 and Regulation (EU) No 1255/2011 of the European Parliament and of the Council (OJ L149, , p. 1). 2

3 SECTION 1 PARTNERS PREPARATION OF THE OPERATIONAL PROGRAMME AND INVOLVEMENT OF On the basis of Article 17(2) of EMFF Regulation and Article 5 of CPR Regulation: 8. With reference to the outcome of the ex-ante evaluation and more specifically to its recommendations on human resources and administrative capacity, a more detailed description would be necessary regarding measures taken at national level in order to ensure fulfilment of requirements and needs in particular under the DCF. 9. The overview of the ex-ante evaluation refers to recommendations that are not listed in the OP. Please include these recommendations under table in the OP. 10. The Strategic Environmental Assessment (SEA) should include information on the consultation with the public and the environmental authorities. SECTION 2 SWOT ANALYSIS AND IDENTIFICATION OF NEEDS On the basis of Article 18(1)(a) of EMFF Regulation: 11. The Commission welcomes the links made between the SWOT analysis and the identification of needs. However, the Commission considers that the consistency between them should be further elaborated. The Cypriot authorities are requested to amend the OP accordingly, in particular: Section 2.1 on SWOT analysis and identification of needs 12. Under Union Priority (UP1), the needs identified should be further expanded in order to strengthen the link with the weaknesses referred to in the SWOT. In this framework, it is recommended that identified needs, such as improvement of fishing fleet efficiency, vessel modernization (in particular with regards to energy efficiency) and promotion of use of environmental friendly material, that have already been identified in the SWOT analysis are specified as climate change mitigation-related needs. The apparent inconsistency between the strength very good ecological status of coastal waters and the weakness strong fishing pressure in particular on demersal stocks, leading to overfishing should be clarified on the basis of the Cypriot fleet report. Furthermore, given that the OP strategy indicates the potential use of artificial reefs as a tool for biodiversity restoration, a reference to the need for habitat restoration should be included in the SWOT. Accordingly, the relevant ecosystem indicators should be appropriately reviewed in the respective sections. 13. Under UP2, the identification of needs should present stronger continuity with the findings of the SWOT analysis, while specifying the precise actions that need to be taken (there is some confusion between the headings of Needs and Threats). In addition, it is recommended that identified needs, such as the implementation of aquaculture spatial planning schemes, the promotion of innovation and the development of energy efficient technologies in aquaculture, that have already been identified in the SWOT analysis are specified as climate change mitigation and /or adaptation-related needs. In the same logic, although environmental impacts of 3

4 aquaculture have been identified by the Cypriot authorities in the initial assessment of their waters under MSFD (in relation to non-indigenous species, eutrophication, sea floor integrity, contaminants and litter), respective references are not provided in the SWOT. 14. Additional clarification regarding environmental pressures and impacts resulting from the aquaculture sector that need to be addressed shall be provided in the OP. 15. Under UP, the need for promotional campaigns should be more explicitly stated. Furthermore, please consider potential aspects related to climate change mitigation under UP5, such as energy consumption and carbon emissions from fisheries infrastructure, as well as the promotion of eco-labelling in fisheries and aquaculture products; Section 2.2 on Context indicators presenting the initial situation 16. With regard to context indicators that are currently missing under the respective UPs and for those that have been set at zero, the Cypriot authorities are invited to provide related detailed justifications (e.g. context indicators 1.5b (stock at risk), 1.7a (extend of seabed), 1.7.b (rates of incidental catches) and 2.3 (net profit). 17. On a general note, the Cypriot authorities are invited to revise the reference year and values for the context indicators under section 2.2 wherever more up-to-date data is available. More specifically: In relation to context indicators for UP1 it is recommended to use 2013 as year of reference (e.g. indicator 1.1 regarding the number of fishing vessels, indicator 1.4 (ROI), e.tc). In addition, please update the year of reference as well as the comment/justification according to the Annual Fleet Report 2013 and substantiate the value for litres of fuel used per kilogramme fish landed provided, since it appears too high for a small-scale coastal fleet. In relation to UP3, please review indicators 2.1 and 2.2 as they are considered to be slightly underestimated compared to the latest STECF report on aquaculture that indicates a production volume of 4.7 thousand tonnes and a value of production of 29.2 M EUR. The context indicator 3.A.1 related to the total number of serious infringements in the last 7 years should provide reference years beginning from The OP should be reviewed accordingly. Please explain the indicator related to the percentage of landings subject to physical control since it appears to be too negligible. With regard to context indicator 3.B.1 and after having considered the STECF coverage reports and evaluations, the level of compliance in 2012 to data calls is estimated at 90% than the indicated 95%, while for 2013 the evaluation is still not finalised. The Republic of Cyprus is invited to explain how this context indicator has been calculated and review the figures accordingly. 4

5 SECTION 3 DESCRIPTION OF THE STRATEGY On the basis of Article 18(1)(b) of EMFF Regulation and Article 27 of CPR Regulation: 18. The Commission welcomes that the strategy developed in the framework of the Cypriot EMFF OP, focusing on enhancement of the competiveness of the aquaculture sector, viability of sea fisheries, the sustainable development of traditionally fisheriesdependent areas, reduction of the impact of fisheries on the marine environment, control of fisheries activities and improvement of knowledge on the state of the marine environment at sea. This strategy is largely in line with the EU2020 objectives and the Partnership Agreement. 19. It is recommended that the strategy includes references to any potential synergies/complementarities between measures/plans/actions in view of increasing energy efficiency in fisheries and aquaculture (in line with specific needs identified in section 2.1 of the OP) and also other sectors of the Cypriot economy in order to address this need with a coherent and comprehensive approach. 20. On the basis of the weaknesses and hence needs identified in the SWOT analysis and the information provided in the Annual Fleet Report 2013, the strategy should better reflect the action plan to be implemented, including the need for permanent cessation of fishing vessels, in particular for small scale fleet segments. 21. Please translate the need identified in the SWOT analysis to protect biodiversity and ecosystems supporting fishing stocks in more concrete terms in the strategy of the OP. Furthermore, please clarify the scope and scale of the issue related to the spread of alien species. 22. Under UP2, the strategy should specify explicitly how the major priorities related to aquaculture as set out in the multiannual plan will be implemented through the measures proposed in the OP. For example, planning for the development of land and marine infrastructures for aquaculture in line with the weaknesses and needs analysis referred in Chapter 2 (section 2.1) should be included in this section. Furthermore, since maritime spatial planning (MSP) has been identified as a need for the further development of aquaculture and increasing employment and territorial cohesion in the Republic of Cyprus, the Commission expects more information regarding the use of EMFF for this initiative. 23. Under UP3, the Cypriot authorities are requested to take into account the extended scope of the EMFF and better integrate data collection issues in the strategy on the basis of the SWOT analysis. 24. Please provide information indicating the coherence between the priorities set in the Prioritised Action Frameworks (PAF) and the objectives of the strategy. More specifically, please consider making reference to the design and implementation of management plans for marine Natura 2000 areas or the dissemination of results/information on marine areas to stakeholders and the public as these issues have been discussed in the SWOT analysis. 5

6 25. Under UP6, given that the need to develop the EU Common Information Sharing Environment (CISE) system has been identified, please provide further details explaining how the Cypriot authorities plan to implement CISE. Section 3.2 on Specific Objectives and Result Indicators 26. As a general observation, the Commission would like to point out that establishing target values at zero for a significant number of result indicators across all UPs needs to be explained and justified in the OP. For example, the target values for Specific Objective (SO) 1 and 2 under UP5 cannot be set at zero since the strategy aims at an increase in production. Furthermore, the intention to create producers' organizations (POs) should be reflected in the table as well. Cypriot authorities are invited to revise the OP accordingly. 27. Under UP1, indicator 1.8 (employment (FTE) maintained in the fisheries sector) sets the target of 762 which is lower than the baseline (817 in 2012). The Cypriot authorities are invited to provide respective explanations on this setting. 28. Please clarify the target for the indicator net profit under UP1 SO3-3,520 EUR. 29. Please qualify the 30% result indicator for unbalanced fleets to explain whether it means limiting structural overcapacity to 30% or a reduction of overcapacity by 30%. 30. Explanation should be provided regarding the reasons for not selecting SO4 (Promotion of aquaculture with high level of environmental protection, animal health and welfare and of public health and safety) and 5 (skills development and lifelong learning) under UP Please provide explanation for the targets established for certain indicators that do not appear sufficiently ambitious (50 jobs created, 50 maintained, 20 new enterprises). 32. Please consider using for indicators 6.2a and 6.2b under UP6 the values presented under UP1, instead of zero. Section 3.3 on Relevant Measures and Output Indicators 33. Please explain the target values selected for output indicators 1.3 (SO1), 1.9 (SO4), 1.6 (SO4) and 1.8 (SO5) under UP Please explain the consistency between the targeted number of projects for productive investments in aquaculture and the targeted/expected increase of production in terms of tonnes (increase by 2000 tonnes) under UP Please explain the target value for the 26 projects related to control, inspection and enforcement. 36. The creation of Producer Organisations and their role with regard to their contribution to the restructuring of the sector and the organization of the market are reflected in the justifications provided. However, please note that the financing of Production and Marketing Plans (PMPs) under Article 66 of the EMFF Regulation is mandatory and, therefore, reference to this measure should be added in the respective table. 6

7 37. The Commission suggests reconsidering the potential UP1 measures under Thematic Objective 8 (promoting employment and supporting labour mobility) and, thereby, considering the selection of SO6 (Development of professional training, new professional skills and lifelong learning) as a specific objective for this Union Priority. Section 3.4 on the Description of the programme's complementarity with other ESI Funds 38. With regard to complementarities between European Structural and Investment Funds (ESI Funds) aiming at increasing energy efficiency, and taking into account that the Cypriot authorities planning for a joint energy efficiency scheme for the business sector to be supported by the European Regional Development Fund 7, please specify the particular economic sectors to which the EMFF is expected to contribute. 39. Complementarity of the OP with other OPs and coherence with Prioritized Action Frameworks (PAF) regarding measures related to Natura 2000 areas should be established and clearly mentioned. Although a brief reference to the coordination with LIFE is made, more explicit reference is expected on the potential coordination with LIFE integrated projects. 40. Please elaborate further on the complementarities and co-ordination mechanisms between the EMFF and EARDF interventions in the programme. The use of Multi-fund or mono-fund approach under Community-Led Local Development (CLLD) should also be clearly stated. Section 3.5 Information on macro-regional and sea-basin strategies 41. The Marine Strategy Framework Directive (MSFD) identifies the Mediterranean Sea as one of the marine regions of European seas. The Republic of Cyprus is a Contracting Party to Barcelona convention and its protocols, which provide for joint efforts towards reaching the objective of clean, healthy and productive marine environment. The Republic of Cyprus is therefore invited to identify which measures/actions under EMFF would assist with the delivery of the objectives under the Mediterranean Action Plan of Barcelona Convention. SECTION 4 REQUIREMENTS CONCERNING SPECIFIC EMFF MEASURES On the basis of Article 18 of EMFF Regulation: 42. The SWOT analysis and the strategy should reflect the need to improve knowledge of marine biodiversity on deep sea and open sea (EEZ) areas in need of protection in order to fill the significant gap of Natura 2000 designations offshore. 43. Under section 4.1, please provide the whole set of key measures /actions proposed under each UP rather than an indicative list, as well as the categories of beneficiaries concerned. 7 Regulation (EU) No 1301/2013 of the European Parliament and of the Council of 17 December

8 44. Please ensure alignment between measures proposed in the OP (sections 4.1 and 3.3 respectively) with the measures and priorities proposed in the PAF (sections F and G) and respective needs/priorities identified in the SWOT analysis and the OP strategy and how these measures will meet the identified needs. 45. Please provide the method for calculation of simplified costs (section 4.3), preferably in line with the rest of the ESI Funds, as it is indicated that the Republic of Cyprus will examine and exhaust all possibilities to use existing tools for simplified costs for both private investments and public works. Furthermore, please include reference to Article 67 of EMFF Regulation together with the description of the method given the intention to use storage aid in the OP. 46. The method for the calculation of compensation according to relevant criteria identified for each of the activities deployed under Article 38(1), 53, 54, 55 and 70 must be already available at this stage and clearly staged in the OP. Therefore, please provide this method in the OP, particularly given the intention to make use of Article 40(1) of EMFF Regulation. 47. Under section 4.6, scrapping is planned to be the main tool up to 2017 leading to achieving a balance in With respect to the premium for vessels 25,000 EUR for 4m LOA with EUR 50 increments for each cm) an upper size limit for the compensation is expected to be provided. Furthermore, the initial amount corresponds to the average of the "5 highest insurable values of the withdrawn during the EFF" where the premium will take into account "the insured value of the vessels, the value of catches, profitability and possible other aid granted to the fishermen", but the exact method is not explained. Please provide additional explanations of the methodology. 48. Since provision of support for the establishment of three FLAGs has been programmed, it is recommended that support for the establishment of a network is also planned in the OP. In this respect section 4.8 should indicate the timeline and funding allocations for these initiatives. SECTION 5 INFORMATION ON THE IMPLEMENTATION OF CLLD On the basis of Article 18(1)(m) of the EMFF Regulation and Articles 32 to 34 of CPR Regulation: 49. Please describe explicitly the links of the CLLD strategy and the outcome of SWOT analysis. Furthermore, please provide a description of the use of preparatory support (selection & approval procedures and funding arrangements). 50. Please remove the repetition of the text from the EMFF Regulation under section Please provide a timetable for the selection of local development strategies (one or two-stage selection procedure, one or several selection rounds, etc.) shall be provided in the OP. 52. Section indicates that the Managing Authority (MA) may use the Fisheries Local Action Group (FLAG) as an extension service. However, it seems that the MA is responsible for checking conformity with the local strategy, which should be the role of 8

9 the FLAG. Please provide clarification on this aspect, in particular what is meant by extension service. SECTION 6 FULFILMENT OF THE EX-ANTE CONDITIONALITIES On the basis of Article 18(1)(d) of EMFF Regulation and Article 19 of CPR Regulation: 53. The Commission acknowledges the timely submission of the Annual Report on the Cypriot fishing fleet for 2013 and asks the Cypriot authorities to review the explanation provided under section of the OP (Table of criteria and assessment of their fulfilment). The assessment of the Report is still pending, so at present it cannot be confirmed whether this EMFF specific ex-ante conditionality (EAC) has been met. Upon preliminary review it appears that the report allows for an adequate analysis of the balance between fishing capacity by fleet segment and fishing opportunities, thus justifying the need for the set up and implementation of an action plan including permanent cessation schemes. However, in this framework the OP is expected to provide a more detailed action plan proposed on the basis of the Annual Fleet Report 2013 that comprises a set of measures and actions including a timeline for implementation in view of achieving balance between fishing stocks and respective segments of the fishing fleet. 54. The Commission considers that the EMFF specific EAC for aquaculture is only partially fulfilled. More specific and explicit links are needed to fulfil the criteria, specifically, as laid out in Annex IV of the EMFF Regulation, that "the operational programme includes information on the complementarities with the multiannual national strategic plan on aquaculture". Please provide further detail on the selection of measures and the use of EMFF resources to ensure effective implementation of the major priorities of aquaculture strategy defined in the multiannual plan. In the light of a recent European Court of Auditors Special Report on the effectiveness of EFF support for aquaculture we strongly encourage the Republic of Cyprus to clarify more precisely how the major priorities of aquaculture strategy defined in the multiannual plan will be implemented with the related measures identified in the OP and how EMFF funds will be spent to ensure effective implementation of these priorities. 55. With regard to the EMFF specific EAC related to the implementation of the data collection framework (DCF), the Commission considers that this EAC is only partially fulfilled. The criteria as laid out in Annex IV of the EMFF Regulation with regards to the 'description of the administrative capacity to prepare and apply a multiannual programme for data collection' and the 'description of the administrative capacity to prepare and implement work plans for data collection' are not completely met. Please provide a complete description. 56. As far as the EAC related to fisheries control is concerned, the Commission considers it as fulfilled. 57. Regarding the general EACs, please provide the action plans that have been developed and will be implemented for the fulfilment of EACs 6 and 7 accordingly (concerning the existence of effective implementation of environmental EU legislation and of a statistical data base for the impact assessment of the OPs) under the respective section. 9

10 If required, please update the action plans to ensure it only comprises of actions/milestones programmed in the future. SECTION 7 DESCRIPTION OF THE PERFORMANCE FRAMEWORK On the basis of Article 18(1)(e) of EMFF Regulation and Article 22 of CPR Regulation: 58. The Commission welcomes the information provided on the performance framework (PF). In particular it notes with appreciation that the performance reserve at the level of the Union Priorities and at programme level is in line with Articles 20 and 22 of the CPR. However, it should be noted that milestone amounts of projects should correspond to completed projects by In addition, milestones for 2018 with reference to financial indicators should take into account the need to cover the N+3 rule for the EMFF OP as a whole. Please provide explanations regarding the estimation of the financial milestones established. 59. The Cypriot authorities are invited to adjust the output indicator for UP4 to "strategies selected" and modify the milestone accordingly. Furthermore, please explain or revise the inconsistency in the total public budget for UP4 (8M EUR) and the financial indicator in the PF (5M EUR) 60. The indicator used for UP5 covers a significant share of the budget allocated to this priority and mainly focuses on marketing and selling products. Please clarify whether Production and Marketing Plans (PMP) will be used to this end. SECTION 8 FINANCING PLAN On the basis of Article 18(1)(k) of EMFF Regulation and Articles 20 to 22 of CPR Regulation: 61. The Commission welcomes that the EMFF contributions by year are coherent with the Commission Decision, all EMFF co-financing rates respect the EMFF Regulation and EMFF ring-fenced amounts by types of expenditure are respected. 62. Please revise the co-financing rate for UP4 as it is currently set at 75% where this should be increased to 85%, since no other measure than CLLD will be used under UP Please note that a very small budget is allocated to market measures when compared to the overall budget. This appears to be contradictory to the fact that the whole strategy revolves around the need to better structure the sector, as financing is in the end allocated largely to actions under other objectives (which could nonetheless also be delivered through PMPs). The possibility of financing PMPs is not reflected in the budgetary allocations under point 8.2. In this view, it should be noted that the level of support to the PMPs may reach 3% of the annual turnover of the members of the concerned PO, which can be substantial and offers several opportunities. The Republic of Cyprus is therefore invited to reconsider whether the allocation of resources is duly in line with the strategy presented in the OP. 10

11 SECTION 9 HORIZONTAL PRINCIPLES On the basis of Article 18(1)(l) of EMFF Regulation: 64. Although the environmental dimension of sustainable development is adequately elaborated, reference to achieving Good Environmental Status should be included in section of the main text of the OP. The same applies to the need for reference to climate change mitigation and adaptation actions. 65. The Republic of Cyprus is invited to explain how the SEA has considered the impact of measures in favour of Natura 2000 and biodiversity as well as any potential negative impacts of proposed measures on Natura 2000 on the basis of Article6 of the Habitats Directive. 66. The Republic of Cyprus is invited to ensure potential synergies between the implementation of EMFF OP (in particular the development of CISE) and maritime border surveillance policies and systems as well as the development of Eurosur to strengthen border security, in particular concerning the equipment and infrastructure supported for these purposes under the Cypriot national programme covering the Internal Security Fund (ISF). Appropriate coordination mechanism between related authorities should be established in this respect. SECTION 10 EVALUATION PLAN On the basis of Article 18(1)(j) of EMFF Regulation and Article 56 of CPR Regulation: 67. Please clarify further the governance of the evaluation plan, in particular with regard to the decision-making bodies in the evaluation. Furthermore, please provide an overview of the evaluations that can already be planned. SECTION 11 PROGRAMME IMPLEMENTING ARRANGEMENTS On the basis of Article 18(1)(m) of EMFF Regulation: 68. Please provide clarifications regarding the arrangements for implementation of the DCF obligations. Please note that the composition of the monitoring committee should reflect the extended scope of the EMFF, such as participation of scientific bodies, climate change experts and actors involved in DCF. SECTION 12 INFORMATION ON THE BODIES RESPONSIBLE FOR IMPLEMENTING THE CONTROL, INSPECTION AND ENFORCEMENT SYSTEM On the basis of Article 18(1)(o) of EMFF Regulation: 69. The Commission notes with appreciation the description of human and financial resources programmed to meet the priorities for the Union on enforcement and control policies. However, the Commission encourages the Republic of Cyprus to make use of 11

12 Articles 76.2 (k) and 76.2 (l) of the EMFF Regulation that allow to support the operational costs which are incurred in carrying out : a) More stringent control for stocks subject to specific control and inspection programmes (SCIP), and control and inspection coordination led by EFCA in accordance with Article 15 of Council Regulation 768/ b) Operations related to the implementation of an action plan, if relevant These operational costs are eligible where they are: i. Directly linked to the undertaking of a fisheries control and enforcement operation ii. Directly related to control activities carried out by a public authority These operational costs can be supported only for the duration of the operation. Travel costs related to their participation to EFCA trainings are eligible under Article 76(h) of the EMFF Regulation. 70. Please provide under section 12.5 of the OP, a more explicit statement linking the types of operations selected further to the Commission Implementing Decision 2014/464/EU 9. The Commission emphasises that no information on the main categories of expenditure over the whole period has been provided while an overview of the current control procedures at national level would be expected. Please provide respective information. SECTION 13 DATA COLLECTION On the basis of Article 18(1)(p) of EMFF Regulation: 71. The Commission welcomes the information provided on data collection, but notes the need identified under the SWOT analysis to improve the administrative capacity as to the limited human resources for the fulfilment of DCF obligations, and therefore invites the Cypriot authorities to clearly state their proposals for remedial actions to address this need. Furthermore, please note that the collection of environmental data beyond what is required under DCF should be financed under UP6. SECTION 14 FINANCIAL INSTRUMENTS On the basis of Article 37 of CPR Regulation and Article 69 of EMFF Regulation: 8 Council Regulation (EC) No 768/2005 of 26 April 2005 establishing a Community Fisheries Control Agency and amending Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy (OJ L 128, , p. 1 14) 9 OJ L 209, , p

13 72. The Republic of Cyprus has stated that it will not use financial instruments in the current programming period. Please provide sound arguments why this kind of delivery mode for public support is not adequate for revenue generating projects in the fisheries and aquaculture sector and please ensure that the possibility remains open for financial instruments to be used at a later stage in the programming period if new elements or developments would encourage this approach. ATTACHMENTS OF THE OP 73. As regards the SEA process the Commission wishes to remind that according to the Commission Guidance on the Ex-ante Evaluation the following documentation should be made available as part of the ex-ante evaluation: A non-technical summary (NTS) of the information provided in the environmental report (annex I(j) of the SEA Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment 11 ) Information on the consultations with the public and the environmental authorities (Article 6 of the SEA Directive). A description of the measures concerning monitoring. STATE AID 74. According to Article 8(2) of the EMFF Regulation, the rules on State aid do not apply to payments made by Member States pursuant to, and in conformity with, this Regulation falling within the scope of Article 42 TFEU. Therefore, certain operations eligible for support from the EMFF do fall under the scope of State aid rules. The Commission services draw the attention of the Republic of Cyprus to the fact that the Decision approving the EMFF OP will be without prejudice to the Commission's position regarding compliance of any operation supported under the programme outside the scope of Article 8(2) of the EMFF Regulation with the applicable procedural and substantive State aid rules at the time when the support is granted. 75. The granting of State aid falling within the scope of Article 107(1) TFEU, either under aid schemes or in individual cases, requires prior approval by the Commission under Article 108(3) TFEU except where the aid is exempted under an exemption regulation adopted by the Commission under Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 to certain categories of horizontal aid and its amendments or under Commission Decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State Aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest and its amendments or where such aid is granted in line with the conditions of the applicable regulations on de minimis aid. 10 European Commission, 2014, Guidelines for the ex-ante evaluation of EMFF OPs. 11 OJ L 197, , p