The new measure aims to enable exporters of wines and spirits to export to the US through this reinsurance mechanism
The European Commission has approved a €5 billion French reinsurance scheme for export credit to the United States under EU State aid rules. This scheme will be in effect from May 8, 2025, to July 8, 2025, allowing exporters of wines and spirits to send their inventory to the US before the implementation of a new wave of tariffs.
France notified the Commission about the €5 billion scheme, which is part of the Cap Francexport reinsurance program. This existing program, administered by Bpifrance Assurance Export, is designed to provide credit for exports to countries that are not accessible through the private insurance market. The new measure aims to enable exporters of wines and spirits to export to the US through this reinsurance mechanism. It offers short-term guarantees to companies providing insurance against commercial or political risks related to payment obligations in export transactions.
The Commission evaluated the scheme by EU State aid rules, specifically Article 107(3)(c) of the Treaty on the Functioning of the European Union. This article allows Member States to support the development of specific economic activities under certain conditions, along with the Short-Term Export Credit Communication.
1. There is a shortage of export credit insurance, making certain risks temporarily non-marketable for French exporters of wine and spirits to the US. Therefore, the Commission has authorised Cap Francexport to include the US in its export credit scheme between May 8 and July 8, 2025.
2. The scheme is necessary, appropriate, and proportionate to facilitate the exports of wines and spirits from France to the US during this brief period.
3. The scheme has an incentive effect, as the beneficiaries would not proceed with the relevant activities without public support.
Based on these findings, the Commission approved the French scheme under EU State aid rules.
