Officially supported export credits: application of certain guidelines

PURPOSE: to update the current Council Decisions in force to reflect the most recent version of the Arrangement on guidelines for officially supported export credits concluded in the framework of the OECD.

PROPOSED ACT: Council Decision.

BACKGROUND: the Community is a Participant in the Arrangement on Guidelines for Officially Supported Export Credits concluded in the framework of the OECD.

The main objective of the Arrangement on guidelines for officially supported export credits is to regulate governments' role in export credits, so that exports reflect quality and prices rather than the most favourable officially supported terms, and hence to establish equal conditions of competition among exporters.

The Arrangement has always been incorporated into Community law by way of Council Decision.

The current version of the Arrangement applicable in the Community is the Decision (2001/76/EC) of 22 December 2000, which was amended by Council Decision of 22 July 2002 with respect of export credits for ships (2002/634/EC). Decision 2001/76/EC is supplemented by the Decision (2001/77/EC) of 22 December 2000 setting forth specific rules on export credits for project finance.

The Arrangement has helped to prevent distortions of competition linked with officially supported export credits. It is regularly updated through negotiations via consensus within the OECD framework. The current Council decisions need to be updated to reflect the most recent version of the Arrangement, i.e. OECD document TD/PG(2005)38/FINAL of 05 December 2005.

IMPACT ASSESSMENT: no impact assessment was carried out.

LEGAL BASE: Article 133 of the Treaty establishing the European Community.

CONTENT: the Commission requests the Council to adopt the draft decision approving the revised Arrangement text and ensuring its application in Community law. The guidelines contained in the Arrangement annexed to this Decision shall apply in the Community.

The proposal is of a very technical nature and deals only with finance/insurance rules applicable to officially supported export credits covered by OECD Arrangement. Decision 2001/76/EC and the Annex thereto are replaced by this Decision and its Annex. Decisions 2001/77/EC and 2002/634/EC are repealed.

BUDGETARY IMPLICATION: the proposal has no implication for the Community budget.