Dominique Gouveia
Policy Executive, Engineering Industries Ireland
Ireland is one of Europe’s most open and globalised economies, yet it remains one of the few EU member states without a state-backed export credit insurance scheme.
This absence of a state-backed credit insurance scheme leaves Irish exporters, particularly SMEs, at a disadvantage compared to their European peers.
Engineering Industries Ireland (Ibec), a representative of Irish business, has consistently called for the introduction of such a scheme. In today’s climate of geopolitical risk, supply chain reconfiguration and intensified global competition, that call has become more urgent than ever.
Why export credit insurance matters
Export credit insurance is a financial safeguard that protects businesses from the risk of non-payment by international buyers, due to reasons ranging from commercial insolvency to political instability.
In most EU member states, national Export Credit Agencies (ECAs) provide this essential cover, enabling exporters to expand into higher-risk markets with confidence. Ireland, however, relies solely on private insurers, which are often risk-averse and operate within narrow limits. For Irish engineering exporters and growing SMEs, this limitation is increasingly untenable.
Export credit insurance is a financial
safeguard that protects businesses
from the risk of non-payment
by international buyers.
Political awareness but limited progress
In a recent positive move, the Government’s Action Plan on Market Diversification, published in August, directed Enterprise Ireland to research a potential scheme and bring forward proposals by the end of 2025. Supports are available through Enterprise Ireland and the Strategic Banking Corporation of Ireland. However, these do not address the political and commercial risks that ECAs in countries such as Germany, France and Denmark already cover.
A strategic imperative
The absence of state-backed credit protection could result in difficulty securing working capital when coverage is unavailable, restricted access to higher-growth emerging markets and weaker competitiveness against European firms with ECA support.
These challenges hold back some of Ireland’s most innovative and export-ready companies. Therefore, a state-backed export credit insurance scheme in Ireland is strategically essential. It is time for Ireland to align with the rest of Europe and provide its exporters with the risk tools they need to thrive on the global stage.
