L 148/22 Official Journal of the European Communities 19. 5. 98 COUNCIL DIRECTIVE 98/29/EC of 7 May 1998 on harmonisation of the main provisions concerning export credit insurance for transactions with medium and long-term cover THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, (1) Whereas medium and long-term export credit in- surance plays a crucial role in international trade and constitutes a major commercial policy instrument; (2) Whereas medium and long-term export credit in- surance plays an important part in trade with devel- oping countries and thus fosters their integration into the world economy, which is an objective of Community development policy; (3) Whereas the differences between the official medium and long-term export credit insurance systems currently operating in the Member States with regard to the main constituents of cover, premiums and cover policy may result in distorsions of competition among enterprises within the Community; (4) Whereas it seems appropriate that the measures provided for in this Directive should not go beyond what is necessary to achieve the objective of the harmonisation necessary to ensure that export policy is based on uniform principles and that competition between enterprises in the Community is not distorted,; (5) Whereas in order to lessen existing distorsions of competition, it is desirable that the different official export credit insurance systems be harmonised, as envisaged in Article 112 of the Treaty, on the basis of uniform principles and in such a way as to form an integral part of the common commercial policy; (6) Whereas the provision by governments (or special institutions controlled by governments) of export credit guarantee or insurance programmes at premium rates which are inadequate to cover the long-term operating costs and losses of the programmes are classified as prohibited export sub- sidies in the Agreement on Subsidies and Counter- vailing Measures concluded in the framework of the Uruguay Round of multilateral trade negotiations (10) (11) (12) (13) (1986 to 1994) ("), in particular under Article 3(1)(a) and paragraph (j) of Annex I thereto; Whereas the premium charged by credit insurers should correspond to the risk insured; Whereas harmonisation would foster cooperation among the credit insurers acting on behalf of the State or with State support, and enhance cooperation among enterprises within the Community as en- visaged by Article 130 of the Treaty; Whereas both harmonisation and cooperation are major and crucial factors in the competitiveness of Community exporters on non-Community markets; Whereas the Commission White Paper on com- pleting the internal market adopted by the European Council in June 1985 stresses the importance of an environment conducive to cooperation among enter- prises in the Community; Whereas, by a Decision (%) dated 27 September 1960, the Council set up a Policy Coordination Group for Credit Insurance, Credit Guarantees and Financial Credits; Whereas on 15 May 1991 the said Policy Coordina- tion Group mandated experts from each of the Member States at that time who, as the Single Market 1992 Experts’ Group, submitted reports containing a set of proposals on 27 March 1992, 11 June 1993 and 9 February 1994; Whereas by Decision 93/112/EEC (°), the Council implemented into Community law the OECD Arrangement on Guidelines for Officially Supported Export Credits; Whereas  Council  Directive  70/509/EEC  of 27 October 1970 on the adoption of a common credit insurance policy for medium- and long-term () OJ L 336, 23. 12. 1994, p. 156. () OJ 66, 27. 10. 1960, p. 1339/60. () OJ L 44, 22. 2. 1993, p. 1. Decision as last amended by De- cision 97/530/EC (OJ L 216, 8. 8. 1997, p. 77).