Fishermen must wait for help with fuel costs

LUXEMBOURG (Reuters) - European Union fishermen learned on Tuesday they must wait until next month for measures to help cushion the huge increase in fuel costs, when fisheries ministers will meet to discuss proposals for financial aid.

Several ideas are on the table for experts to consider before the July 15 meeting, including demands from some EU fishing countries to change state aid rules and for cash to compensate for temporary halts in fishing.

"We have tried hard to stretch ourselves as much as possible to help fishermen face up to the new reality," EU Fisheries Commissioner Joe Borg told a news conference on Tuesday.

"I certainly understand the frustration of fishermen faced with this. The costs of fuel have increased enormously."

Borg's main response to the fuel crisis has been to tell fleets to reduce overcapacity. Many fishermen have been holding strikes in protest against diesel prices, which have risen by 240 percent since 2004.

Earlier this month, hundreds of fishermen -- mostly from France and Italy -- held a protest in Brussels, clashing with police near the European Commission's headquarters.

It would be illegal for the EU to subsidise fuel, which would do nothing to solve underlying problems, Borg says.

He has suggested there could be some leeway in the rules on short-term aid provided it helps eventually to cut capacity.

One of the main areas in focus for the July meeting will be demands by countries such as Italy to allow fishermen to receive up to 100,000 euros (79,079 pounds) in aid over three years without a national government facing scrutiny from European Commission market regulators.