It ought to be stated from the outset, that the concept of tonnage growth has always enjoyed universal interest due to its direct correlation to higher levels of competitiveness and trade.

It is therefore unsurprising that during the 2015 European Shipping Week Conference in Brussels, European Transport Commissioner Violeta Bulc affirmed her commitment towards ensuring that the European flag remains attractive and of a high quality1.This is a stance which has been maintained, and further compounded by a later statement in 2016, wherein Commissioner Bulc expressed the European Commission's position against changing the existing guidelines relating to the taxation of shipping activities2. Yet, when pressed with questions regarding the Commission's role in the context of tonnage growth in January 20173, Commissioner Bulc considered this topic to be irrelevant for the Commission. According to Bulc, flag competitiveness depends on fiscal measures and administrative efficiency; both of which fall under the competence of national governments. In light of this, Bulc added that there was little to be done by the European Commission other than offering enabling measures and technical support.

The sentiment of Bulc's latter statement seems to contradict that expounded by the European Commission since time immemorial, as evidenced by former Commissioner Stanley Clinton Davis' 1987 speech at the Institut Mediterraneen des Transports Maritimes in Marseille, wherein the dangers of flagging out, and its consequences on the Community fleet, were first outlined. A steady growth in tonnage leads to a rise in demand for European shipping service providers; thus creating further employment opportunities to be taken advantage of by a European workforce. This will inevitably stimulate European expertise in the sector, which is crucial if the European Union desires to maintain a telling presence in international shipping circles. Larger tonnage will effectively lead to a larger European presence in such fora as the International Maritime Organisation (IMO). This will not only ensure the safeguarding of European interests, but also allow for a better say when negotiating international conventions and policies. A larger European fleet will in turn ensure greater control over the adherence to any such instrument by European flagged vessels in Europe and beyond.

In light of the aforementioned, it seems clear that European tonnage should in fact be of serious concern to the European Commission; especially in the context of the Union's efforts to effectively implement its environmental policies and maintain international shipping standards across the board.

Co-author: Luke Hili

Footnotes

1 Violeta Bulc, 'Full steam ahead: Europe needs a top-quality shipping sector that can compete internationally', European Commission – Speech, 04/03/2015

2 http://www.amna.gr/english/article/14148/EU-Commission-not-to-change-guidelines-on-shipping–Commissioner-Bulc-says; accessed 15 February 2017

3 http://www.maritimewatch.eu/news?page=2; accessed 15 February 2017

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