CELEX: 51992PC0502
Language: en
Date: 1992-12-01
Title: Proposal for a COUNCIL DECISION on coordination and information procedures in matters of officially supported export credits, credit insurance, credit guarantees and financial credits

H COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  C0M(92)502 final
                                                   Brussels, 1 December 1992
                                    Proposal for a
                                   COUNCIL DECISION
                     on coordination and information procedures
                 in matters of officially supported export credits,
             credit insurance, credit guarantees and financial credits
                            (presented by the Commission)
»WHSB&H39BS
 ---pagebreak---                            EXPLANATORY MEMORANDUM
The Arrangement on guidelines in the field of officially supported export
 credits (the OECD "Arrangement") was first incorporated into Community
 law by a 1978 Council Decision.
This   Arrangement  provides  the   international  framework  for official
support for export credits. The EEC is one of the Participants in this
Arrangement.
In 1973 the Community, by way of a Council Decision, imposed upon itself
procedural rules for a certain type of credits. Since 1978 these rules
have been applied alongside the rules of the Arrangement.
Recently, modifications to the OECD Arrangement have been negotiated (the
so-called Helsinki-package). These new rules have been adopted by Council
Decision of 23rd March 1992. The rules of the Arrangement have to be
implemented on a case by case basis. Until now the Community has adopted
its position on the basis of an informal mandate agreed by unanimity in a
Council Working Group. Only modifications to the Arrangement text as such
have been negotiated following the procedure laid down by article 113 of
the EEC treaty.
It has become apparent that more formal procedures are necessary for the
Community   to adopt  a position   in the meeting    of  the Participants,
especially since the question whether certain projects are eligible for
tied or partially untied aid credits has become a controversial issue.
In the proposal for a Decision the Commission endeavours on the one hand
to align internal procedures with Arrangement procedures and simplify the
administrative work,   and on the other      hand to  set  up  a procedure
consistent with the Commitology decision (87/373) which would enable the
Community to adopt common positions swiftly which would be represented
in the OECD.
                                                                           fc-
 ---pagebreak---                       Proposal for a Council Decision
                on coordination and information procedures
            in matters of officially supported export credits,
        credit insurance, credit guarantees and financial credits
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community
and in particular Article 113 thereof;
Having regard to the proposal from the Commission;
Having regard to the opinion of the European Parliament;
Whereas the Community is a Party to the Arrangement on guidelines for
officially  supported export credits    (hereinafter  referred to as the
Arrangement) which was brought into force in the Community by Council
Decision of 4 April 1978, as last amended by the Council Decision of 23rd
March 1992;
Whereas the Helsinki package established new rules concerning export
credits including aid credits affecting trade and also laid down new
rules for notification and consultation especially in the field of tied
and partially untied aid credits;
Whereas, by a Décision of 27 September 1960(1), the Council set up a
Policy Coordination Group for Credit Insurance, Credit Guarantees and
Financial Credits;
(1) OJ nr. 66, 27.10.60, p. 1339
                                                                          3
 ---pagebreak---  Whereas, by its Decision (EEC) n° 73/391 of 3 December 1973 amended by
 Decision (EEC) n° 76/641 of 27 July 1976, the Council has instituted a
 consultation procedure in matters of credit insurance, credit guarantees
 and financial credits;
 Whereas it is necessary to amend this procedure to take account of the
 amendments to the Arrangement made by the Helsinki package so that an
 improved procedure applies in respect of export credits which are subject
to prior notification and to bring        it into conformity with Council
Decision n° 87/373 of 13 July 1987 laying down the procedures for the
exercise of implementing powers conferred on the Commission;
Whereas the Community's position as a party to the Arrangement means both
that to facilitate international cooperation within the Organisation for
Economic Cooperation and Development      (hereinafter referred to as the
OECD) and to encourage internal coherence within the Community on matters
relating to the Arrangement, a procedure is necessary to enable the
Community to approve the grant by Members States of export credits which
are subject to prior notification under the Arrangement          so that the
Community    can  express  a   coherent   and  consistent    view   on   these
notifications within the OECD;
HAS DECIDED AS FOLLOWS :
                                  Article 1
1.   Where  a Member   State  has, in   accordance   with  the   Arrangement,
notified its intention to grant fully or partially credits as defined in
Section I of the Annex,     Member States shall be authorised to provide
such export credits in accordance with the procedure     set out in    Article
2.   To  facilitate  this  procedure,   Member  States   shall   provide   the
information as set out in Section II of the Annex. If provision of such
export credits is the subject of discussion in the OECD, the Community's
position   shall  be  expressed  by   the  Commission   in  accordance    with
decisions taken pursuant to the procedure set out in Article 2.
 ---pagebreak---  2.  Where a third    country which    is a party to the Arrangement         has
 notified a proposal to grant an export credit in accordance with the
terms of the Arrangement and such notification is to be discussed within
the OECD, the Community's position in the OECD shall be determined by the
procedure set out in Article 2 and shall be expressed by the Commission.
                                   Article 2
1.   The Commission shall be assisted by a Committee composed of the same
members as described in Article 3 of the Council Decision of 27 September
1960(1) creating    a   Policy  Coordination   Group   for  Credit    insurance,
credit   guarantees   and   financial   credits,   and   be   chaired    by  the
representative of the Commission.
2.   The representative of the Commission shall submit to the committee a
draft of the measures to be taken.         The committee shall deliver its
opinion on the draft within a time limit which the chairman may lay down
according to the urgency of the matter.       The opinion shall be delivered
by the majority laid down in Article 148(2) of the Treaty in the case of
decisions which the Council is required to adopt on a proposal from the
Commission.   The votes of the representatives of the Member States within
the committee shall be weighted in the manner set out in that article.
The chairman shall not vote.
The Commission    shall   adopt  measures which    shall   apply   immediately.
However, if these measures are not in accordance with the opinion of the
committee, they shall be communicated by the Commission to the Council
forthwith.   In that event :
The Commission may defer application of the measures which it has decided
for   a  period  of  not more    than  one month    from   the   date   of  such
communication;
The Council acting by a qualified majority may take a different decision
within the time limit referred to in the previous paragraph.
3.   At the request of a Member State or the Commission, the Committee may
examine any question relating to : (a) the grant of untied credits with a
(1) OJ L nr. 66, 27.10.60, p. 1339
                                                                                 Ç
 ---pagebreak--- duration of more than five years calculating from the starting point as
defined in the Arrangement; or departing from any other norm adopted by
the Member States or; (b) agreements concluded by the Member States with
third  countries referring   to the possible grant    of credits without
specifying the precise terms thereof; or      (c) any other  transactions
relating to credit insurance, credit guarantees and financial credits not
subject to the coordination procedure.
                                 Article 3
Council Decision   (EEC) No. 73/39l(1) of 3 December 1973 and Council
Decision (EEC) No. 76/641  of 27 July 1976(2) are hereby repealed.
                                 Article 4
This Decision is addressed to the Member States.
(1) OJ No L 346, 17.12.1973, p.l
(2) OJ No L 223, 16.8.1976, p. 25
                                                                          G
 ---pagebreak---                                   ANNEX
Scope of the procedure set out in Article 2 of the Council Decision ("the
coordination procedure") and information to be supplied in Matters of
Officially Supported Export Credits, Credit Insurance, Credit Guarantees
and Financial Credits.
                                 TITLE I
                            GENERAL PROCEDURE
                                Section I
                                  Scope
                                Article 1
The procedure set out in Article 2 of the Council Decision shall apply
where it is contemplated by a Member State, any other state organisation
or any body for credit insurance or finance to grant or guarantee, fully
or partly export credits
    linked to exports to non EC-countries or to transactions between EC-
    countries relating to goods or services
    with a duration of more than five years calculated from the starting
    point as defined in the Arrangement on guidelines for officially
    supported export credits (hereinafter called "the Arrangement"), or
    which depart from any other norm adopted by the Member States, or
    which are subject to prior notification under the Arrangement or
    which are defined in the Arrangement as "common line" proposals.
                                Article 2
The procedure shall be applicable :
    whether supplier credits or financial credits are concerned
    whether these credits form the subject-matter of individual contracts
    or lines of credit as described in Article 3
                                                                          t
 ---pagebreak---     whether the credits are purely private or are sponsored      fully or
    partially, out of public funds.
Mixed credits combining public and private     funds and private credit
arrangements combined with public fund interest subsidies shall for the
purpose of this procedure be considered as public credits.
                                Article 3
1.  A "line of credit" shall be defined in accordance with the definition
    of that term in the Arrangement.
    The procedure shall be applicable to lines of credit even where the
    nature of the transactions has not been specified      and no formal
    commitment to open a line of credit has been made, without prejudice
    to its application to each particular contract.
2.  Any Member State which has granted a line of credit shall, upon
    request, give information of the use made of that arrangement.
 ---pagebreak---                                     Section II
                            Exchange of information
                                    Article 4
In cases subject to the coordination procedure, the Member States            shall
supply to the Commission       and the Member      States   all the   information
foreseen in the Arrangement and where relevant the precise grounds for
not applying, or departing from the norms set out in article 1 of this
Annex.
Where relevant, the following        circumstances must be specified        : aid
credit,  competition    from   a Member     State   or  a  third  country    (with
indication whether or not supported); transaction to be charged to a line
of credit which has been the subject of previous consultation.
                                    Article 5
The following numbering shall be observed when, transmitting information z
-   for all individual credits and lines of credit notifiable under the
    Arrangement : the number of the Arrangement notification
    for all other credits or lines of credit : the letters "EC" followed
    by the letter corresponding to the initiating Member State, a serial
    number   for   each   year,   and    an   indication   of  the   country    of
    destination.
                                    Article 6
The information prescribed under Article 4 must be transmitted as soon as
possible after initiation of the study either of the guarantees and the
proposed credits proper, or of any other decision which, under the terms
of  national   regulations   or   national    administrative   practices, would
constitute   a   prerequisite    for   the   subsequent   examination    of   such
guarantees or credits.
                                                                                   ^
 ---pagebreak---                                  Article 7
 Where there are changes in the factors justifiying departure from the
 norms or if new basic terms of the credit are proposed which differ from
^those initially specified, the new information shall be transmitted under
-±he initial reference, followed by the letters "rev" and the export
irrredit shall be subject to renewed approval     in accordance with the
procedure set out in Article 2 of the Council Decision.
3î,   however, the new terms proposed are more restricitve, the Member
JState concerned shall be committed only to direct information under the
smitial reference.
                                 Article 8
 The information specified in Article 4 shall be transmitted by telex or
 online to recipients designated by each Member State and the Commission.
 All correspondence shall bear the relevant number and an indication of
 the country of destination.
                                                                           JW
 ---pagebreak---                                 FINANCIAL STATEMENT
                        SECTION 1: FINANCIAL IMPLICATIONS
1. Title of operation
   Council Decision on coordination and information procedures in matters of
   officially supported export credits, credit insurance, credit guarantees
   and financial credits.
2. Budget heading involved
   A-250          Meetings in general
   A-2510         Expenditure on meetings of committees whose consultation is
                  compulsory in the procedure for drafting Community
                  legislation.
3. Legal basis
   Article 113 of the EEC Treaty
4. Description of operation
   4.1   Specific objectives
        The Decision provides for the creation of a committee chaired by the
        Commission. It will assist the Commission in coordinating policy on
        officially supported export credits. In particular, it will assist
         the Commission in adopting a Community position within the OECD on
         individual credits which are subject to a consultation procedure
        wi thin the OECD.
        To ensure that    its proposals to that committee, and where
         appropriate to  the Council, are as sound as possible, the Commission
        will sometimes   need to seek opinions from outside advisers. For this
         purpose, there   is a budget for studies and consultations.
   4.2   Duration
         There is no time limit for this operation.
   4.3   Target population
         The Decision is addressed to the Member States.
5. Classification of expenditure or revenue
   5.1   Compulsory/Non-compulsory
         Non-compulsory
 ---pagebreak---    5.2   D i f ferent i ated/Non-d i fferentIated
         Non-differentiated.
   5.3   Type of revenue involved
         No revenue is envisaged.
6. Type of expenditure
    Implementing the Decision wiI I require:
         the organization of meetings in Brussels of the committee of Member
         States' experts,
         consultation of experts to enable the Commission to make well-
         founded proposals.
7. Financial impact on appropriations for operations (part B of the budget)
   None.
8. What anti-fraud measures are planned in the proposal for the operation?
   None.
         SECTION 2: ADMINISTRATIVE EXPENDITURE (part A of the budget)
1. Will the proposed operation involve an increase in the number of
   Commission staff? If so, how many?
   No.
2. indicate the amount of staff and administrative expenditure involved in
   the proposed operation. Explain the method of calculation.
   The following table gives a forecast of annual expenditure, assuming
   12 meet ings a year.
   Methods of calculation for 1992 to 1997 (assuming the Directive is
   adopted by the Council this year or early 1993):
   1992: no expenditure
                                                                            A<L
 ---pagebreak---     1993 to 1997: Estimated annual expenditure:
    1.   Experts' expenses for committee meetings In Brussels (the Committee)
         2 experts x 12 Member States x 12 one-day meetings
         - 24 Committee members x ECU 600 - 14 400 x 12 meetings
         - ECU 172 800
         A-2510 (group 3)                        +/- ECU 173 000
    2.   Consultancy expense?
         A-250                                        ECU   5 000
   Annual total 1993-97:
   A-2510                                             ECU 173 000
   A-250                                              ECU   5 000
                                                      ECU 178 000
   Timetable for planned administrative expenditure (in constant ECU)
Heading          1992    1993    1994    1995    1996     1997    Total
A-2510(group 3)   -   173 000 173 000 173 000 173 000 173 000   865 000
A-250             -     5 000   5 000   5 000   5 000    5 000   25 000
Total                                                           890 000
              SECTION 3: ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
1. Objectives
   The Decision is aimed at enabling the Community to take a position within
   the OECD on individual credits under an International agreement.
2. Grounds for the operation
   The Decision is a direct consequence of the Treaty.
 ---pagebreak---  ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(92) 502 final
                                                     DOCUMENTS
                                                                          02 10
                               Catalogue number : CB-CO-92-523-EN-C
                                                            ISBN 92-77-50025-5
OKiee for Official Publications of the European Communities
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