ANNUAL REVIEW BY THE COMMISSION of Member States' Annual Activity Reports on Export Credits in the sense of Regulation (EU) No 1233/2011
Date: 2017-02-07
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU Member State, OECD, State aid, action programme, export aid, export credit, sectoral agreement

EUROPEAN 
COMMISSION 

Brussels, 7.2.2017  
COM(2017) 67 final 

ANNUAL REVIEW BY THE COMMISSION 

of Member States' Annual Activity Reports on Export Credits in the sense of Regulation 
(EU) No 1233/2011 

EN 

   EN 

 
 
 
 
  
 
ANNUAL REVIEW BY THE COMMISSION 

of Member States' Annual Activity Reports on Export Credits in the sense of 
Regulation (EU) No 1233/2011 

1. Introduction 

Regulation  (EU)  No  1233/2011  of  the  European  Parliament  and  of  the  Council  of 
16 November  2011  on  the  application  of  certain  guidelines  in  the  field  of  officially 
supported export credits1 foresees in its Annex I that Member States shall make available 
to the Commission an Annual Activity Report of their national Export Credit Agencies 
(ECAs)  programmes,  and  that  the  Commission  shall  produce  an  annual  review  for  the 
European  Parliament  based  on  an  examination  of  the  reports  provided  by  the  Member 
States.  

The  present  annual  review  covers  the  calendar  year  2014.  As  regards  the  scope  of  this 
exercise,  it  concerns  export  credit  activities  in  the  sense  of  Regulation  (EU) 
No 1233/2011, i.e. "medium and long term" transactions with a repayment period of two 
years  or  more.  Transactions  omitted  in  the  review  are  short  term  export  credit 
transactions2  and  transactions  carried  out  by  certain  ECAs  outside  the  field  of  export 
credits (such as insurance of investments). It also has to be noted that in the case of some 
Member  States,  the  function  of  Export  Credit  Agency  (ECA)  is  performed  by  an 
insurance company operating under a public mandate. In such cases, the managing of the 
public  export  credit  program  is  strictly  separated  from  the  private  sector  activities  (the 
latter are of course not within in the scope of the present review).  

The Commission has taken note of the Resolution adopted on 2 July 2013 by European 
Parliament on the first reporting exercise under Regulation (EU) No 1233/20113. 

As  mentioned  in  previous  reports,  bearing  in  mind  the  recommendations  contained  in 
that Resolution – such as the recommendation to the Council Working Group on Export 
Credits  and  the  Commission  to  consult  with  the  European  External  Action  Service  on 
further  developing  the  reporting  methodology  –  the  Commission  has  also  drawn  the 
attention of Member States to that Resolution in view of subsequent reporting exercises. 

2. Annual Activity Reports received for the calendar year 2014 

The  Annual  Review  of  2014  is  based  on  updated  Annual  Activity  Reports  from  21 
Member States. The Commission has received reports from Austria, Belgium, Bulgaria, 
Czech  Republic,  Denmark,  Finland,  France,  Germany,  Hungary,  Italy,  Luxemburg,  the 

1  OJ L 326, 8.12.2011, p. 45. 
2  To  such  transactions,  the  Communication  of  the  Commission  pursuant  to  Article  93(1)  of  the  EC 
Treaty  applying  Articles  92  and  93  of  the  Treaty  to  short-term  export-credit  insurance  (OJ  C  281, 
17.9.1997, p. 4), applies.  

3  European Parliament resolution of 2 July 2013 on the first annual report from the Commission to the 
European Parliament on the activities of Member States’ Export Credit Agencies (OJ C 75, 26.2.2016, 
p. 7). 

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Netherlands, Poland, Portugal, Croatia, Romania, Slovenia, Slovakia, Spain, Sweden and 
the United Kingdom. 

The  remaining  seven  Member  States  -  Cyprus,  Estonia,  Greece,  Ireland,  Latvia, 
Lithuania  and  Malta  -  did  not  have  active  export  credit  programs  in  the  sense  of 
Regulation (EU) No 1233/2011 during the reporting year.  

3. Analysis of the Annual Activity Reports 

a) General and financial information 

The  applicable  regulatory  framework  (Regulation  (EU)  No  1233/2011)  sets  the  general 
rules for export credit transactions and programs. Although most European governments 
have set up an ECA, the scope and type of export credit programs provided, as well as 
the organizational structures of the ECAs, differ among Member States.  

The  ECA  is  either  a  government  department  or  agency  or  an  insurance  company 
performing this function under a public mandate and under government supervision.  In 
some  Member  States,  where  in  addition  to  guarantees,  official  support  in  the  form  of 
interest rate style support is offered, two separate organisations have been set up. In other 
Member States the two strands of export credit support is run by the same organisation.     

In  2014,  21  EU  Member  States  were  running  export  credit  programs  in  the  sense  of 
Regulation (EU) No 1233/2011. These programs were managed by a total of 29 different 
agencies and governmental departments. 

In general terms, Member States have expanded their toolkit of export credit programs in 
recent years. The most common type of export credit support offered by European ECAs 
is  what  falls  under  the  category  "pure  cover"  (i.e.  the  export  transaction  in  question  is 
actually  financed  by  a  credit  from  a  commercial  bank,  for  which  the  ECA  provides  a 
guarantee or insurance-type cover). All 21 Member States providing export credits in the 
sense  of  Regulation  (EU)  No  1233/2011  during  the  reporting  period  offer  this  kind  of 
support.  

A  majority  of  Member  States  also  offer  other  forms  of  support  covered  by  Regulation 
(EU) No 1233/2011 and under the OECD Arrangement on Officially Supported Export 
Credits4, such as direct credit or financing (in which the financing is directly provided by 
the  ECA,  not  by  a  commercial  bank)5,  re-financing6  or  interest  rate  support  schemes7. 
Several Annual Activity Reports also explicitly mention project finance8 and tied aid9.  

It is possible to make a broad comparison of the provisions and the use of export credits 
programs by Member States, outlining the main differences and similarities. To make a 
fully-fledged  comparison  reflecting  all  aspects  is  however  much  more  difficult.  The 
terms  and  conditions  of  export  credit  programs,  even  those  belonging  to  the  same 
category of programs and run by ECAs complying with the same regulatory framework, 

4  The  text  of  the  OECD  Arrangement  on  Officially  Supported  Export  Credits  is  annexed  to  the 

Regulation. 

Slovakia and Sweden  
Finland, France, Poland, Slovakia and Spain 

5  Czech Republic, Denmark, Finland, Hungary, Poland, Slovakia, Spain and United Kingdom 
6 
7 
8  Denmark, Germany and Netherlands 
9  Austria, Denmark, Hungary, Poland and Spain  

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may vary among Member States. Generally a higher degree of convergence has evolved 
during  recent  years  as  the  OECD  Arrangement  on  Officially  Supported  Export  Credits 
has come to encompass a wide range of issues. 

Subject to this caveat, a comparison of the aggregate nominal risk exposure at the end of 
2014 provides at least a general idea of the size of the biggest “pure cover” type export 
credit schemes:  

Official support in the form of “pure cover” in 2014 (in billion Euro) 
The biggest in EU ranked according to aggregate nominal risk exposure 

Germany 

France 

Sweden 

Italy 

Netherlands 

88.5 

65.3 

31.6 

26.7 

20.2  

Through  their  ECAs,  Member  States  are  active  in  a  broad  range  of  areas  beyond  the 
scope of the reports required under Regulation (EU) No 1233/2011. Taking into account 
that there are specific financing conditions prevailing in certain industrial sectors – e.g. 
aircraft  and  shipbuilding  –  several  Member  States  have  also  developed  sector-specific 
export credit products. The latter essentially cover medium and long term export credit 
activities  (as  defined  by  the  OECD  Arrangement  on  Officially  Supported  Export 
Credits). However, many European ECAs are also offering such products as short term 
export  credits  and  letter  of  credit  guarantees,  manufacturing  risk  guarantees  or 
investment insurance products. It is useful to keep this in mind when assessing the wider 
economic role of ECAs. 

Detailed information may be found in Sections II and IV of the reporting template used 
for the Member States' Annual Activity Reports, as well as in the general annual reports 
to which several Member States explicitly refer.  

In overall conclusion, the Annual Activity Reports provide relevant financial information 
on the export credit programs in 2014. However, it has to be stressed that according to 
Regulation (EU) No 1233/2011, this reporting is done in accordance with the respective 
Member  State's  national  legislative  framework.  This  results  in  some  differences  in 
presentation.  That  being  said,  the  Commission  has  no  specific  observations  on  the 
financial aspects of the Annual Activity Reports10.  

The Annual Activity Reports of the Czech Republic, Slovakia and the United Kingdom 
specify  contingent  liabilities  as  provided  for  in  paragraph  1,  last  phrase,  of  Annex  1  to 
Regulation (EU) No 1233/2011.  

10  According  to  Annex  I,  paragraph  1,  the  present  reporting  process  is  without  prejudice  to  the 
prerogatives of the Member States' institutions exercising the supervision of the national export credit 
programs. 

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b) Treatment of "environmental risks, which can carry other relevant risks" 

According to paragraph 2 of Annex I to Regulation (EU) No 1233/2011 Member States 
in  their  Annual  Activity  Reports  “shall  describe  how  environmental  risks,  which  can 
carry other relevant risks, are taken into account in the officially supported export credit 
activities of their ECAs."  

All Member States explicitly refer to this provision. While paragraph 2 of Annex I only 
mentions environmental risks, most Member States also refer to risks linked to social and 
human  rights  issues.  Almost  all  Member  States  state  that  they  comply  with  the  OECD 
Recommendation on Common Approaches for Officially Supported  Export  Credits and 
Environmental  and  Social  Due  Diligence 
(Common  Approaches)  concerning 
environmental  and  human  rights  risks.  The  same  goes  for  the  OECD  Recommendation 
on Bribery. 

In  line  with  the  Common  Approaches,  the  ECAs  are  gradually  establishing  a  group  of 
dedicated  experts  on  environmental,  social  and  human  rights  issues.  Transactions  are 
being  screened  in  accordance  with  the  Common  Approaches  for  their  environmental, 
social  and  human  rights  risks  and  potential  impacts.  The  screening  process  has 
increasingly become a standard assessment procedure among ECAs. 

Several ECAs also mention that the risk assessment on aspects related to environmental 
and  human  rights  is  often  pursued  in  close  collaboration  with  exporters  and  banks. 
Exporters and banks are requested to give additional information, when needed, in order 
to ensure that a thorough risk assessment is undertaken. 

The  process  of  evaluating  the  risks  in  question  typically  aims  at  a  clear  decision  on 
whether  a  given  project  is  eligible  for  export  credit  support  or  not  (i.e.  if  the  risks 
involved are disproportionate, no cover is provided). In case of risks that are considered 
acceptable,  export  credit  support  is  typically  subject  to  specific  conditions,  usually 
aiming  at  the  enforcement  of  mitigation  measures  and  compliance  with  relevant 
standards. 

Bulgaria is not a member of the OECD and its ECA has not implemented the Common 
Approaches  in  respect  of  the  environment,  nor  the  human  rights  related  aspects. 
However,  Bulgaria  applies  the  OECD  Recommendation  on  Bribery  and  Officially 
Supported Export Credits. 

c) Other information contained in the Annual Activity Reports  

In  addition  to  the  information  mentioned  in  sections  3a)  and  b)  above,  the  Annual 
Activity Reports show that Member States in general have policies on export credits and 
environment,  anti-bribery  and  sustainable  lending  practices  concerning  low  income 
countries. The three relevant OECD Recommendations11 play a major – but not exclusive 
– role. Even Member States which are not OECD Members apply these instruments or 

11  1.  OECD  Recommendation  on  Common  Approaches  for  Officially  Supported  Export  Credits  and 
Environmental  and  Social  Due  Diligence  (the  so-called  “Common  Approaches”).  2.  OECD 
Recommendation on Bribery and Officially Supported Export Credits 3. The Principles and Guidelines 
to Promote Sustainable Lending Practices in the provision of Official Export Credits to Low-Income 
Countries. 

5 

 
                                                 
intend in principle to do so12. Overall, the reports from Member States show that Member 
States  are  adopting  the  same  approach  in  order  to  address  issues  related  to  the 
environment,  human  rights  and  bribery.  Some  Member  States  give  more  detailed 
information in their reports and stress the importance of these issues. 

In  many  cases,  Member  States  are  increasingly  applying  rules  and  practices  that  go 
beyond the scope defined by the OECD Arrangement and apply the same approach also 
to  transactions  that  do  not  fall  under  the  scope  of  the  Common  Approaches.  In  several 
cases,  the  ECAs  in  question  have  developed  relevant  instruments  themselves  (e.g.  a 
Corporate Social Responsibility policy or an ethics code). 

Several  Member  States13  address  the  importance  of  adopting  measures  to  promote 
openness and transparency by providing information to all stakeholders on transactions, 
finances and on environmental and social issues. As a means to increase awareness and 
promote  openness  and  transparency,  dialogues  with  stakeholders  are  initiated  and  take 
place on a regular basis. 

Like  in  the  previous  reporting  exercise,  many  Member  States  stress  the  special 
importance  of  human  rights.  Practically  all  reports  continue  to  reflect  support  for  the 
development  of  a  human  rights’  dimension  under  the  new  Common  Approaches.  For 
several  Member  States,  human  rights  considerations  have  a  distinct  status  within  their 
project assessment. In some cases, the topic is directly linked with labour rights/rights of 
employees. 

All  Member  States  also  attach  high  importance  to  anti-bribery  and  anti-corruption 
policies. In several Member States exporters and banks are obliged to sign an anti-bribery 
declaration as part of the application for cover. A broad range of other instruments (e.g. 
national legislation, domestic good practices) are in use.  

d) Compliance of ECAs with Union objectives and obligations 

In order to step up transparency at the EU level, Member States shall make available to 
the Commission an Annual Activity Report, reporting in line with its national legislative 
framework certain financial and operational information on their export credit activities, 
which also includes information on how environmental risks are addressed.  

According to paragraph 3 of Annex I “the Commission shall produce an annual review 
for  the  European  Parliament  based  on  this  information,  including  an  evaluation 
regarding the compliance of ECAs with Union objectives and obligations”. 

The Treaty on the European Union (TEU) enumerates the general objectives of the Union 
in  its  Article  3  and  the  principles  and  objectives  of  the  Union's  External  Action  in  its 
Article 21. 

As  regards  the  EU's  common  commercial  policy,  reference  to  the  principles  and 
objectives of the Union's external action is made in Article 206 and in the first paragraph 
of Article 207 of the Treaty on the Functioning of the European Union. 

12 

It  is however obvious  that  the OECD’s  Guidelines  and Principles  on Sustainable  Lending  cannot be 
applied by export credit providers who are not doing any lending to low income countries. 

13  Denmark, France, Germany, the Netherlands and Sweden. 

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The  Commission  takes  note,  on  the  basis  of  information  provided,  that  Member  States 
with  export  credit  activities  in  the  sense  of  Regulation  (EU)  No  1233/2011  have 
established  policies  to  accompany  the  management  of  their  export  credit  programs  that 
are 
the  Union's  objectives.  The  export  credit-specific  Policy 
Recommendations developed in the OECD – the only international organisation to have 
developed specialised rules for this policy area so far – are in common use.  

line  with 

in 

As mentioned in previous Annual Reviews, in response to a recommendation contained 
in the above-mentioned Resolution by the European Parliament of July 2013 on guidance 
for  future  reporting  exercises,  the  Commission  services  have  recommended  to  notably 
using the work of international monitoring institutions (including the UN) as guidance in 
further  policy  development.  Member  States’  reports,  to  a  different  degree,  already  use 
such  international  instruments  as  references  and  the  Commission  encourages  further 
work  in  this  direction.  Further  dialogue  with  the  European  External  Action  Service  in 
respect of human rights policies would also be crucial. 

The  European  Parliament  has  called  upon  the  Commission  for  a  statement  on  whether 
Member States comply with Union objectives and obligations; the European Commission 
has performed its annual review in accordance with Annex I. Based on the information 
contained  in  Annual  Activity  Reports  submitted  by  Member  States,  the  Commission 
considers that they are consistent with the Union's objective set out in Articles 3 and 21 
TEU.  Of  course,  the  European  institutions  may  in  the  future  set  jointly  more  precise 
political targets. The Commission stands ready to facilitate and promote a relevant inter-
institutional  dialogue  in  this  regard  but  must  in  the  meantime  perform  its  evaluation  in 
accordance with Paragraph 3 of Annex I.  

As  regards  compliance  with  international  obligations  and  obligations  under  EU 
competition law,  there have  been no  disputes at WTO level involving European export 
credit  programs  during  the  reporting  period.  No  complaints  concerning  potential 
infringements of EU law involving export credit agencies were received by the European 
Commission in 2014.  

7