Communication of the Commission to Member States amending the communication pursuant to Article 93(1) of the EC Treaty applying Articles 92 and 93 of the Treaty to short-term export-credit insurance (Text with EEA relevance)
Date: 2001-08-02
Institutions: European Commission
Subjects: credit insurance, export credit, export credit insurance, short-term credit

C 217/2

EN

Official Journal of the European Communities

2.8.2001

Communication of the Commission to Member States amending the communication pursuant to
Article 93(1) of the EC Treaty applying Articles 92 and 93 of the Treaty to short-term export-
credit insurance

(2001/C 217/02)

(Text with EEA relevance)

I. Introduction

The communication of
the Commission to Member States
pursuant to Article 93(1) of the EC Treaty applying Articles
92 and 93 of
the Treaty to short-term export-credit
insurance (1)
(hereinafter referred to as (cid:145)the 1997 communi-
cation(cid:146)) was to apply from 1 January 1998 for a period of
five years, which would normally expire on 31 December
2002.

the 1997 communication is

to remove
The purpose of
distortions of competition due to State aid in the sector of
export-credit insurance, where there is competition between
public or publicly supported export-credit
and
private export-credit insurers. In particular, the sector directly
concerned by such competition, and therefore by the 1997
communication, is that of export-credit insurance relating to
short-term export-credit risks on trade within the Community
and with countries outside it.

insurers

These risks are defined in the 1997 communication as
(cid:145)marketable risks(cid:146). Marketable risks are those risks which may
not be covered by export-credit insurers with the support of
the State. All those risks which are not (cid:145)marketable(cid:146) can a
contrario be publicly supported.

Point 2.6 of the 1997 communication states that:

that

risks

(cid:145)The capacity of the private reinsurance market varies. This
means
is not
the definition of marketable
immutable and may change over time; for example, it might
risks. The definition will
be extended to cover political
therefore have to be reviewed regularly (namely at least once
a year) by the Commission. The Commission will consult
Member States and other interested parties on such reviews (10).
In so far as necessary, changes to the definition will have to
take account of the scope of Community legislation governing
export-credit insurance, in order to avoid any conflict or legal
uncertainty.

(10) Inter alia, the Commission will call on the help of the

Council (for example, its Export Credits Group).(cid:146)

Following the completion of a study into the private rein-
surance market, and after consultation of the Member States,
both within the Council Export Credits Group and at a multi-
lateral meeting on State aid, the Commission has decided to
amend the definition of marketable risk to include political
risks arising within the European Union and in those OECD
member countries currently listed in the Annex to the 1997
communication. The current list of names of all the Member

(1) OJ C 281, 17.9.1997, p. 4.

States will be replaced by a generic reference to the Member
States of the European Union so that the future enlargement of
the European Union will not necessitate further amendment of
the 1997 communication.

The new definition of marketable risk will apply from 1
January 2002 until 31 December 2004. State aid notifications
which are pending on 1 January 2002 will be assessed in
accordance with the new definition. Unlawful State aid, that
is aid put into effect in contravention of Article 88(3) of the
Treaty, will be assessed in accordance with the rules in force at
the time the aid was granted.

The Commission has also decided to extend the duration of the
1997 communication until 31 December 2004.

The Commission wishes
to inform Member States and
interested parties that it intends to undertake a further study
in 2003 to verify the capacity of
the private reinsurance
market to adapt to a further extension of the definition of
marketable risk to cover a wider range of commercial risks,
possibly including commercial risks arising in all countries of
the world. Should the results of that study and consultations
with Member States confirm that such coverage is possible, it
will amend the definition of marketable risk accordingly as part
of the general review of the 1997 communication in 2004.

II. Amendments to the 1997 communication

Accordingly, the following amendments to the 1997 communi-
cation will take effect on 1 January 2002:

1. In Point 2.5, the first two paragraphs are replaced by the

following:

(cid:145)In view of the above, (cid:147)marketable(cid:148) risks are defined for the
purposes of this communication as commercial and political
risks on public and non-public debtors established in the
countries listed in the Annex. For such risks the maximum
risk period (that is, manufacturing plus credit period with
normal Berne Union starting point and usual credit term) is
less than two years. All other risks (that is, catastrophe
risks (9) and commercial and political risks on countries
listed in the Annex) are considered to be not yet
not
marketable.

___________
(9) That

is, war,

revolution, natural disasters, nuclear
accidents, and so forth, not so-called (cid:147)commercial, catas-
trophe risks(cid:148) (catastrophic accumulations of loss on indi-
vidual buyers or countries) which may be covered by
excess of loss reinsurance and are commercial risks.(cid:146)

2.8.2001

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Official Journal of the European Communities

C 217/3

2. Point 2.6 is replaced by the following:

that

the definition of marketable risks

(cid:145)The capacity of the private reinsurance market varies. This
means
is not
immutable and may change over time. The definition may,
therefore, be reviewed, notably at
this
communication on 31 December 2004. The Commission
will consult Member States and other interested parties on
such reviews (10).
In so far as necessary, changes to the
the scope of
definition will have to take account of
Community legislation governing export-credit
insurance,
in order to avoid any conflict or legal uncertainty.

the expiry of

___________
(10) Inter alia, the Commission will call on the help of the
Council (for example, its Export Credits Group).(cid:146)

3. In Point 4.5, the first sentence is replaced by the following:

(cid:145)This communication will apply from 1 January 1998 for a
period of seven years.(cid:146)

4. The Annex is replaced by the following:

(cid:145)ANNEX

Iceland
Japan
New Zealand
Norway
Switzerland
United States of America(cid:146).

III. Appropriate measures proposed to Member States

under Article 88(1) of the Treaty

The Commission proposes to Member States, on the basis of
Article 88(1) of the Treaty, the following appropriate measures
concerning their respective existing schemes.

In order to comply with the new definition of marketable risks,
Member States should amend, where necessary, their export-
credit systems for marketable risks in such a way that the
granting of State aid of the types indicated in point 4.2(a) to
(f) of the 1997 communication to publicly supported export-
credit insurers in respect of such risks is ended by 1 January
2002.

LIST OF MARKETABLE RISK COUNTRIES

European Union

All the Member States

Countries which are members of
the OECD
Australia
Canada

The Member States are invited to give their explicit agreement
to the proposed appropriate measures within two months from
the date of publication of this communication. In the absence
of any reply, the Commission will assume that the Member
State in question does not agree with the proposed measures.