The purpose of this research project is to develop an optimal management mechanism for the economic and social sustainability of European fisheries. Throughout the project, development and feasibility of a rights based management mechanism which efficiently allocates the fishing rights in Member States will be investigated. This mechanism will not have a high data demanding characteristic and will also be adaptable to other regions of fisheries in the third countries. Currently, Common Fisheries Policy (CFP) is the European Union`s instrument for the management of fisheries and aquaculture. As the third section in the Green Paper on the reform of the CFP pointed, European fisheries are eroding their own ecological and economic basis due to overfishing. Therefore, objectives to achieve sustainable fisheries have not been met overall and policy reform is needed to ensure that CFP will reach its objectives. The proposed mechanism will surely help to successfully implement the principles and objectives of the CFP by aligning the interests of the fishermen and those of the Commission. Moreover, the planned study has the potential to significantly improve the currently applied traditional fisheries management systems. Successful adaptation of the proposed management mechanism under the future of the CFP will promote sustainable fisheries in the EU.