Study on short-term trade finance and credit insurance in the European Union
The purpose of this Study is to analyse the functioning of the trade finance and credit insurance market within the European Union (EU) for the European Commission. It analyses how well the existing instruments meet the legitimate needs and aspirations of exporters in order for them to be internationally competitive, as well as the needs of those who provide the financing and insurance for the exports. The report also looks at the appropriate role for the state to play in the business, in the context of the financial crisis and beyond. The analysis in this report draws on a range of sources,... relevant background information and on the consultants' own experience and knowledge of the short term credit insurance market both within the EU and worldwide. It also reflects detailed consultations with and feedback received from stakeholders during the consultation period from June to October 2011. The report demonstrates the need for a fundamental change in the methodology, both for assessing changes in the short term credit insurance market and for handling the need for any consequent amendments to the definitions of marketable/non-marketable risks in relation to the involvement of export credit agencies. The report concludes with a list of recommendations for future state aid rules in this area.