In 1998 EU Members agreed on a Directive harmonising export credit insurance for medium and long term transactions.
Export credit insurance for medium- and long-term transactions is a highly important trade policy tool for commerce with non-EU countries. Articles 132 and 133 of the Treaty Establishing the European Community require the member countries to standardise their systems of export support and to shape the Community trade policy on uniform principles. As long ago as 1960, efforts were made to create a binding Directive that would harmonise export credit insurance for intermediate- and long-term transactions.
The Council of the European Union, acting at the proposal of the European Commission, adopted the Directive in May 1998; it came into force on 1 April 1999. For export business with a risk period (i.e. repayment period including manufacturing time) of at least two years the Directive sets forth, in very general terms, common principles in respect of cover elements, premium, country cover policy and notification procedures. In framing the Directive, the developments in the OECD were also taken into account.