The European Commission has given its approval for a €5 billion French re-insurance scheme aimed at facilitating the export of wines and spirits to the United States. This decision falls under EU State aid rules, with the scheme set to operate from May 8, 2025, to July 8, 2025. The initiative is designed to support exporters in anticipation of a new wave of tariffs being imposed.
France’s plan involves utilizing the Cap Francexport re-insurance regime. This existing framework, managed by Bpifrance Assurance Export, offers credit for exports to countries not typically covered by private insurance markets. The measure specifically targets exporters of wines and spirits looking to navigate commercial and political risks associated with payment obligations in their transactions with US partners.
The Commission evaluated this scheme based on EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union. This article permits Member States to assist certain economic activities under specific conditions. The Short-Term Export Credit Communication was also considered during this assessment.
According to the Commission’s findings:
– A shortage in export credit insurance has made some risks temporarily uninsurable for French wine and spirit exporters targeting the US market.
– Cap Francexport will now include the US among its list of countries covered by its export credit scheme between May 8 and July 8, 2025.
– The scheme is deemed necessary and proportionate for promoting exports during this brief window.
– It provides an incentive effect since beneficiaries would not pursue these activities without public support.
Based on these considerations, the Commission has approved France’s proposal under EU State aid regulations.
This development follows an announcement from April 2, 2025, when the US declared a new series of tariffs affecting steel, aluminium, cars and car parts with a rate of 25%, while other products like machinery and drinks face a 20% tariff. On April 9, there was a temporary suspension announced on some planned tariffs against the EU for a duration of ninety days. In response, the EU paused its intended tariffs as well in hopes that negotiations might lead to more favorable terms.
Commission President Ursula von der Leyen highlighted that if negotiations do not result in satisfactory agreements, countermeasures from the EU would be reinstated.
Further details about this decision can be accessed through case number SA.118757 once confidentiality issues are addressed. Updates will be available on both the internet and through Competition Weekly e-News publications.
