1Council Decision (EU) 2026/802 of 16 March 2026 on the position to be taken on behalf of the European Union with regard to the decision of the Participants to the Sector Understanding on Export Credits for Civil Aircraft set out in Annex III to the Arrangement on Officially Supported Export Credits on amendments to the calculation of the Market Reflective Surcharge

Council Decision (EU) 2026/802 of 16 March 2026 on the position to be taken on behalf of the European Union with regard to the decision of the Participants to the Sector Understanding on Export Credits for Civil Aircraft set out in Annex III to the Arrangement on Officially Supported Export Credits on amendments to the calculation of the Market Reflective Surcharge THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph, in conjunction with Article 218(9), thereof, Having regard to the proposal from the European Commission, Whereas: (1) The guidelines contained in the Arrangement on Officially Supported Export Credits (the Arrangement), developed within the framework of the Organisation for Economic Cooperation and Development (OECD), including the Sector Understanding on Export Credits for Civil Aircraft (the Aircraft Sector Understanding) set out in Annex III to the Arrangement, have been transposed, and thus been made legally binding in the Union by virtue of Regulation (EU) No 1233/2011 of the European Parliament and of the Council Regulation (EU) No 1233/2011 of the European Parliament and of the Council of 16 November 2011 on the application of certain guidelines in the field of officially supported export credits and repealing Council Decisions 2001/76/EC and 2001/77/EC (OJ L 326, 8.12.2011, p. 45, ELI: http://data.europa.eu/eli/reg/2011/1233/oj). . (2) In accordance with Section 2 of Appendix II to the Aircraft Sector Understanding, the Median Credit Spreads (MCS) are one of the inputs necessary to obtain the Market Reflective Surcharge to be applied to the calculation of Minimum Premium Rates for transactions subject to the Aircraft Sector Understanding. The data used for determining MCS were previously provided over the London Interbank Offered Rate (LIBOR). Following the discontinuation of LIBOR, that data are currently provided over the Secured Overnight Financing Rate (SOFR). The change in the base rate caused by the switch from LIBOR to SOFR has resulted in an increased value for MCS, thereby penalising the risk premium. (3) The Participants to the Aircraft Sector Understanding (the Participants) are to decide, by written procedure, on amendments to Article 28 of Appendix II to the Aircraft Sector Understanding which would introduce a permanent Credit Adjustment Spread of -29 bps to the calculation of the Market Reflective Surcharge. Therefore, those amendments would compensate for the increase in MCS resulting from the change in the base rate when switching from LIBOR to SOFR and provide predictability for aircraft manufacturers and other users of the Aircraft Sector Understanding. (4) It is appropriate to establish the position to be taken on the Union’s behalf during the written procedure for the adoption of the decision of the Participants on amendments to Article 28 of Appendix II to the Aircraft Sector Understanding, as that decision will be binding on the Union and capable of decisively influencing the content of Union law, by virtue of Regulation (EU) No 1233/2011.

(5) The position of the Union should therefore be to support the amendments to the Aircraft Sector Understanding as specified in the draft amendments to Article 28 of Appendix II to the Aircraft Sector Understanding attached to this Decision, HAS ADOPTED THIS DECISION:

Article 1

The position to be adopted on the Union’s behalf with regard to the decision of the Participants to the Sector Understanding on Export Credits for Civil Aircraft set out in Annex III to the Arrangement on Officially Supported Export Credits on amendments to the calculation of the Market Reflective Surcharge shall be to support the amendments to the Aircraft Sector Understanding as specified in the draft amendments to Article 28 of Appendix II to the Aircraft Sector Understanding attached to this Decision See document ST 6599/26 ADD1 on http://register.consilium.europa.eu. .

Article 2

This Decision shall enter into force on the date of its adoption. Done at Brussels, 16 March 2026. For the Council The President M. Damianos