Brussels, 20/07/2010 (Agence Europe) - On Tuesday 20 July, the European Commission opened a formal investigation procedure into the French 'Aero 2008' measure, which offers exchange rate risk insurance to companies supplying parts to aircraft manufacturers.
“We need to make sure that the French measure does not give some players an advantage over others to cover their exchange rate risk for long term deliveries" said Joaquín Almunia, the European commissioner in charge of competition policy.
In autumn 2008, France launched a measure which enables aeronautic suppliers to get state supported exchange rate risk insurance. The insurance is given on the account of the state and is administered by Coface, the leading French export credit company. France considers that the insurance is provided on market terms, i.e. it does not contain state aid, and did not notify Aero 2008 to the Commission.
The Commission doubts that the premiums for the insurance are in line with market prices. Also, there is no evidence that suppliers could not find similar insurances from banks. Furthermore, the Commission wants to verify that the measure has an incentive effect in order to avoid windfall profits. Until now, four French aeronautic suppliers have benefited from the exchange rate risk insurance offered. The amount insured is the US dollar/euro exchange rate risk of deliveries totalling around €10 million. (L.C./transl.fl)