31.12.2002 Official Journal of the European Communities L 358/49 COUNCIL REGULATION (EC) No 2369/2002 of 20 December 2002 amending Regulation (EC) No 2792/1999 laying down the detailed rules and arrangements regarding Community structural assistance in the fisheries sector THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Commu- nity, and in particular Articles 36 and 37 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parliament (), Whereas: 1 Regulation (EC) No 2792/1999 () lays down provisions relating to the restructuring of the Community fisheries sector. The period of application of Council Decision 97413/ EC of 26 June 1997 concerning the objectives and detailed rules for restructuring the Community fisheries sector for the period from 1 January 1997 to 31 December 2001 with a view to achieving a balance on a sustainable basis between resources and their exploita- tion () has been extended and will expire on 31 December 2002. Appropriate provisions should be laid down for the period commencing on 1 January 2003. Consistency should be ensured between the policy for restructuring the fisheries sector and other aspects of the Common Fisheries Policy, in particular the objective of achieving a stable and enduring balance between the capacity of fishing fleets and the fishing opportunities available to them in Community waters and outside Community waters. Since this balance can be achieved only by capacity withdrawal, Community financial support to the fisheries sector through the Financial Instrument for Fisheries Guidance (FIFG) should be concentrated mainly on the scrapping of fishing vessels and public aid for fleet renewal should be permitted only until 31 December 2004. For the same reason, measures for the equipment and modernisation of fishing vessels should be restricted either to measures to improve safety, navigation, hygiene, product quality, product safety and working conditions or to measures to increase the selectivity of fishing gear, including for the purpose of reducing by- catches and habitat impacts. These measures should be eligible for FIFG support on condition that they do not lead to an increase in fishing effort. () O] C 203 E, 27.8.2002, p. 304. (*) Opinion delivered on 5 December 2002 (not yet published in the Official Journal). () OJ L 337, 30.12.1999, p. 10. Regulation as last amended by Regu- lation (EC) No 179/2002 (O] L 31, 1.2.2002,dp. 25). () OJL 175, 3.7.1997, p. 27. Decision as amen 70/EC (O] L 31, 1.2.2002, p. 79). ed by Decision 2002/ ) (12) FIFG support for measures to assist small-scale coastal fishing should be granted on condition that such measures do not serve to increase fishing effort in fragile coastal marine ecosystems, or that they help to reduce the impact of towed gear on the flora and fauna of the sea bed. Public aid for the transfer of Community fishing vessels to third countries, including transfers made in the context of joint enterprises, should be permitted only until 31 December 2004. Socio-economic measures aim to support the retraining of fishermen to help them take up full time professional activities outside marine fisheries. These measures may also aim to support the diversification of fishermen's activities outside marine fisheries and thereby enable them to continue fishing on a part-time basis, provided that this contributes to a reduction of their fishing effort. Detailed rules should be introduced for the granting of compensation and its limitation in time where a recovery or management plan is decided on by the Council or emergency measures are decided on by the Commission or by one or more Member States. Articles 87, 88 and 89 of the Treaty should apply to aid granted by Member States to the fisheries and aquacul- ture sector. However, in order to speed up the reimbur- sement by the Commission of funds advanced by the Member States, an exception to that principle should be introduced for the obligatory financial input by Member States towards measures co-financed by the Community and provided for under the development plans defined in Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds (). For procedural reasons, all measures entailing public financing over and above the provisions concerning obli- gatory financial contributions contained in Regulation (EC) No 2792/1999 or in Council Regulation (EC) No 2370/2002 of 20 December 2002 establishing an emer- gency Community measure for scrapping fishing vessels () should be treated as a whole under Articles 87, 88 and 89 of the Treaty. () OJ L 161, 26.6.1999, p. 1. Regulation as amended by Regulation (EC) No 1447/2001 (OJ L 198, 27.7.2001, p. 1). () See page 57 of this Official Journal.