(2a)

The Arrangement has contributed to lessening the impact of the current economic and financial crisis, through creating jobs by supporting trade and investment of companies which would otherwise not be granted credit in the private sector.

(2b)

The export credit agencies should take into account and respect the objectives and policies of the Union. When supporting Union companies, these agencies should comply with and promote the Union's principles and standards in such areas as consolidating democracy, respect for human rights and policy coherence for development.

(2c)

However, Member States' export credit agencies should carefully examine the applications received taking into account that the official support provided as export credit could potentially in the medium and long term contribute to their Member State's public deficit, in particular considering the increased risk of default due to the aftermath of the financial crisis.

(2d)

Export credit agencies should carefully examine applications received in order to maximise the benefits of the official support provided taking into account the fact that well-targeted export credit will contribute to new market access opportunities for Union companies, especially small and medium sized enterprises (SMEs), while fostering open and fair trade and mutually beneficial growth in the aftermath of the crisis.

(2e)

The OECD requires the disclosure of information on export credits from its Members in order to prevent them from behaviour which is protectionist or market distorting. Within the Union, transparency should be ensured in order to guarantee a level playing field for the Member States.

(2f)

Export credit agencies have become the largest source of official financing for developing countries. Hence, export credit-related debt constitutes the largest component of developing-country official debt. A significant proportion of export credit project financing in developing countries is concentrated in sectors such as transport, oil, gas and mining and large-scale infrastructure, such as large dams.

(2 g)

The Participants to the Arrangement are involved in a continuous process intended to minimise market distortion and to establish a level playing field in which the premiums charged by the officially supported export credit agencies of OECD Members are risk-based and cover their operating costs and losses over the long term. In order to advance this goal, transparency and reporting by officially supported export credit agencies is required.

(2h)

In support of the continuing process within the OECD towards higher transparency and reporting standards for officially supported export credit agencies of OECD Members and beyond, the Union should apply additional measures of transparency and reporting for officially supported export credit agencies based in the Union as set out in Annex 1a to this Regulation.

(2i)

Developing and consolidating democracy and respecting human rights and fundamental freedoms as stipulated in Article 21 of the Treaty on European Union (TEU) and referred to in the Charter of Fundamental Rights of the European Union, as well as environmental principles and general principles of Corporate Social Responsibility (CSR), supplemented by other examples of international good practice, should be used as a guide for all projects financed by officially supported export credit agencies based in the Union, and include a social and environmental impact assessment, which includes human rights and the standards incorporated in the body of Union environmental and social legislation relevant to the sectors and projects financed by export credit agencies. The OECD ‘Common Approaches’ in their present wording already contain an explicit option to use European Community standards on bribery, sustainable lending and the environment as a benchmark in undertaking project reviews. Use of this provision should be further encouraged, taking into account that project sponsors, exporters, financial institutions and export credit agencies have different roles, responsibilities and leverage with regard to projects benefiting from official support.

(2j)

The climate objectives of the European Union and its Member States in terms of their Union and international commitments should guide all projects financed by officially supported export credit agencies based in the Union. These include: the final declaration by the heads of State and Government at the G20 Pittsburgh Summit on 24 and 25 September 2009 to phase out fossil fuel subsidies; the Union objectives to reduce its GHG emissions by 30 % compared to 1990 levels, to increase energy efficiency by 20 % and to have 20 % of its energy consumption coming from renewable sources by 2020; and the Union objective to reduce its GHG emissions by 80 to 95 % by 2050.The removal of fossil fuel subsidies should be accompanied by measures to ensure that the living standards of workers and the poor are not adversely affected.

(2k)

The principles underpinning CSR, which are fully recognised at international level, whether by the OECD, the International Labour Organization (ILO) or the United Nations, concern the responsible behaviour expected of undertakings, and presuppose, first of all, compliance with the legislation in force, in particular in the areas of employment, labour relations, human rights, the environment, consumer interests and transparency vis-à-vis consumers, the fight against corruption and taxation. Moreover the specific situation and capabilities of SMEs have to be taken into consideration.

(2l)

In view of the intensified competitive situation on world markets and in order to avoid competitive disadvantages for Union companies, the Commission and Member States should strengthen the efforts of the OECD in reaching out to non-Participants to the Arrangement and should use bilateral and multilateral negotiations in order to establish global standards for officially supported export credits. Global standards in this field are a prerequisite for a level playing field in world trade.

(2 m)

Although OECD countries are guided by the Arrangement, non- OECD countries and in particular, emerging countries do not take part in the Arrangement with the result that this could lead to an unfair advantage for exporters of these countries. These countries should therefore be encouraged to join the OECD and participate in the Arrangement.

(2n)

In view of the EU's Better Regulation policy aimed at simplifying and improving existing regulation the Commission and Member States, in future reviews of the Arrangement, should focus on reducing administrative burdens on businesses and national administrations, including export credit agencies.

(2o)

The improvements in the Arrangement should ensure full coherence with Article 208 of the Treaty on the Functioning of the European Union (TFEU), in order to contribute to the realisation of the general objective of developing and consolidating democracy and the rule of law, and respecting human rights and fundamental freedoms. Additional measures should therefore be applied in the Union when transposing the Arrangement into Union law in order to guarantee compatibility between the Arrangement and Union law.

(2p)

Social and environmental impact assessment methodology that ensures compliance with export credit requirements should be fully consistent with the principles of the EU Sustainable Development Strategy, the Cotonou Agreement and the European Consensus on Development and should reflect the Union's commitment and obligations under the UN Framework Convention on Climate Change (UNFCCC), the UN Convention on Biological Diversity (UNCBD) as well as the attainment of the UN Millennium Development Goals (MDGs) and the social, labour and environmental standards as embodied in international agreements.

(4)

Decision 2001/76/EC should therefore be repealed and replaced by this Decision with the consolidated and revised text of the Arrangement attached thereto as an Annex , and Decision 2001/77/EC should be repealed.

(4)

Decision 2001/76/EC should therefore be repealed and replaced by this Regulation with the consolidated and revised text of the Arrangement attached thereto as Annex 1 , and Decision 2001/77/EC should be repealed.

(1)

This Annual Activity Report shall contain the following information:

(2)

(3)