euractiv: Time for a European public export credit insurance programme?

Over the last decade, public export credit insurance has become one of the major instruments of trade policy, used to support and encourage exports.

To encourage exports means to increase domestic production, economic growth and jobs and have a better balance of trade and public finances.

However, despite the strong public support that exporters from some countries have, in particular in East Asia, European exporters do not benefit from support at the EU level and are facing a mosaic of national public export credit insurance programmes.

We believe that policymakers should examine the possibility of establishing a European public export credit insurance programmes that could provide risk cover, in addition to national programmes, for extra-EU exports from all member states. Such a unified instrument would allow exporters to benefit from the collective European economic and commercial strength.

Public export credit insurance protects exporters from the risk of non-payment of goods or services exported. It is provided by Export Credit Agencies (ECA) and is backed by a state guarantee enabling exporters to continue their activities with a significantly reduced risk.

In the EU there exists only a regulatory framework for member states’ public export credit insurance, but no EU insurance programme for extra-EU exports is provided, and exporters depend on their national insurance programmes.

On the other side, the European Commission reports that the aggregate value of support for medium and long-term transactions, of top five EU public export insurance providers, Germany, France, Sweden, Italy and Netherlands was around €244 billion.

Establishing public export insurance of the EU would not only help to kick-start the EU economy and increase its presence around the world but would also help to equalise export opportunities of companies across the Union.

Full article is available here: https://www.euractiv.com/section/economy-jobs/opinion/time-for-a-european-public-export-credit-insurance-programme/

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