(BRUSSELS) - The European Commission said on Tuesday it planned to allow emergency aid to help fishermen cope with record fuel prices, which have provoked waves of protests.

In particular, the commission proposed to lift ceilings on public aid for the sector, raising the limit from 30,000 euros (46,500 dollars) per firm currently to 100,000 euros.

It said it would also be prepared to allow member states to provide emergency aid to fishermen who do not go to sea for a maximum period of three months as long as it is part of a restructuring.

"The commission understands the need for coordinated action at EU level to avert a severe crisis for the industry, and to ensure that the problem is not simply displaced, but really tackled head on," EU Fisheries Commissioner Joe Borg said in a statement.

"This means not only providing the possibility of emergency relief, but committing to finally addressing the underlying issue of overcapacity," he added.

The European Union's executive arm has long argued that the root problem facing Europe's fishing industry is overcapacity and has called for painful fleet reductions.

Under the commission's proposed measures to help the sector, limits on premiums for fleet reductions would be lifted and aid would be increased for scrapping old boats to replace them with smaller, more fuel efficient vessels.

The commission said that retirement aid currently only granted to fisherman could be broadened out also to include other workers in the industry such as people that work in auction halls and ports.

However, the measures, which Borg is to present to EU fisheries ministers at a meeting on Monday, fell short of recent calls in the sector for actions to cap fuel prices, by cutting taxes on them.

With fishermen leading protests against soaring oil prices recently, fisheries ministers and official Italy, France, Greece, Malta, Portugal and Spain called on Tuesday for an increase in EU financial support for the industry.

In addition, they asked for authorisation to apply measures to stabilise diesel prices, notably in the reduction of fuel taxes for the fishing industry.

The European Commission created a waves of protest in France, Italy and Spain on Friday by announcing plans to close the industrial tuna fishing season early this month.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.