IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 10 Mar 2016 | Removal date: open ended
Still in force

State loan

 On 10 March 2016, the European Investment Bank agreed to provide financing for the construction of Europe's first titanium recycling plant, as part of the European Fund for Strategic Investments (henceforth: EFSI). The plant shall be managed by the multinational company Eramet SA and will recycle titanium used in aircrafts. The French state has an indirect ownership stake in Eramet SA.
The exact amount of financing was not specified.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
The list of affected jurisdictions is based on the EFSI Information Sheet, which states that all of Europe's titanium scrap currently needs to be exported, mainly to the United States.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

393 Metal wastes or scraps
8108 Titanium and articles thereof, including waste and scrap.
810830 Waste and scrap
416 Other non-ferrous metals, cerments & articles thereos
8108 Titanium and articles thereof, including waste and scrap.
810820 Unwrought titanium; powders
810890 Other

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