Printer Friendly

FRENCH AID TO AERO 2008 CLEARED.

The European Commission authorised, on 8 March, a state guarantee scheme put in place by France to cover the exchange rate risk for aeronautic suppliers (AERO 2008), managed by COFACE. The EU executive found that the guarantee is in line with market principles and does not constitute state aid within the meaning of Article 107(1) TFEU. The AERO 2008 guarantee enables aeronautic suppliers at Tier 2 and below (the measure does not relate to Tier 1 and Super Tier 1 suppliers, which are partners sharing risks with aircraft manufacturers), which normally conclude supply contracts in US dollars, to benefit from a state-guaranteed US dollar forward rate for a specified amount of turnover and for a maximum period of five years. The Commission verified that the premium charged by COFACE covers not only the market value of the guarantee, but also the insured's default risk and administrative costs.

COPYRIGHT 2011 Europolitics
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2011 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:European Report
Date:Mar 14, 2011
Words:148
Previous Article:INDUSTRIAL POLICY : FRANCE DEFENDS CONCEPT OF RECIPROCITY.
Next Article:RESEARCH/AGRICULTURE : JRC PINPOINTS CLIMATE IMPACT OF LIVESTOCK FARMING.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters