The European Commission has approved a €5 billion French re-insurance scheme under EU State aid rules. This scheme, effective from 8 May 2025 to 8 July 2025, enables exporters of wines and spirits to ship their products to the US before the new tariffs take effect.

The French scheme

France notified the Commission of a scheme under the Cap Francexport re-insurance regime. Cap Francexport is an existing re-insurance system, managed by Bpifrance Assurance Export, providing credit for exports to countries non-marketable on the private insurance market. The new measure allows exporters of wines and spirits to ship to the US through a re-insurance mechanism. This mechanism offers short-term guarantees to companies insuring against commercial and/or political risks related to payment obligations in export transactions.

The Commissions assessment

The Commission assessed the scheme under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union, which permits Member States to support certain economic activities under specific conditions, as well as the Short-Term Export Credit Communication.

The Commission found:

• Due to the lack of export credit insurance, certain risks are temporarily non-marketable for French wine and spirits exporters to the US. The Commission authorized Cap Francexport to include the US in the list of countries covered by its export credit scheme from 8 May to 8 July 2025.
• The scheme is necessary, appropriate, and proportionate to facilitate the export of wines and spirits from France to the US during this short period.
• The scheme has an incentive effect, as beneficiaries would not carry out these activities without public support.

On this basis, the Commission approved the French scheme under EU State aid rules.

Background

On 2 April 2025, the US announced a new wave of tariffs. Steel, aluminium, cars, and car parts are subject to a 25% tariff (so-called Section 232 tariffs). Other goods, such as machinery, agri-food, and drinks, are subject to a 20% tariff. On 9 April, the US announced a temporary pause on some of its planned tariffs on the EU for 90 days. The EU then announced a similar pause on intended tariffs to allow time for negotiations with the US to possibly reach a more favorable outcome.

Commission President Ursula von der Leyen emphasized that if the negotiations do not yield satisfactory results, the EUs countermeasures will be reinstated.

For more information

The non-confidential version of the decision will be available under case number SA.118757 in the State aid register on the Commissions competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.