IP/07/823
Commission approves social aid for European seafarers on Estonian ships

Brussels, Belgium – The European Commission approved 2007-06-13 an Estonian social aid for European seafarers working on board of internationally operated cargo ships. The eligible ships must be entered in the Estonian shipping register and fly the Estonian flag. The measure will benefit shipping companies established in Estonia that either own such cargo ships or operated them under a charter party. The aid is aimed at increasing the international competitiveness of Estonia’s shipping sector.

The Estonian authorities shall grant social tax refund, up to a full rebate, for European seafarers working on board cargo vessels used in international trade, which are registered under the Estonian shipping register and fly the Estonian flag. The aid shall benefit private shipping companies with first or secondary residence in Estonia.

The total amount of 540 000 000 EEK shall be spent between 1 May 2007 and 31 December 2012 by Enterprise Estonia, the body responsible for disbursing the aid. Grants are subject to yearly and overall budgetary limits. Any aid granted under this scheme cumulated with other measures must not exceed the total amount of taxes and social contributions from shipping activities and seafarers.