The European Commission said it has opted not to extend beyond October 31st the accord allowing state guarantees for terrorism-related airline insurance.
EU economic and monetary affairs commissioner Mr Pedro Solbes said national governments wanting to continue to offer such assistance for airlines will have to meet the commission's usual state aid criteria.
Mr Thor Pedersen, finance minister of Denmark, which holds the EU presidency, said the decision not to roll over the agreement was for the commission, not EU finance ministers, to make.
"The current arrangements expire at the end of October," Pedersen said of the accord introduced following the September 11th terrorist attacks against the US.
READ MORE
PA