Repayment of the financing depends on the cash flows of the project (limited recourse project financing) rather than on the guarantees of other parties.

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Most would like the pair to announce a joint initiative to pave a revolution for European government financing along the lines of mutual guarantees for joint issues of Eurobonds.

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Part of the lure: The prospect for lining up financing from Japanese government-affiliated lenders and private bank loans with state guarantees.

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That is because European, South Korean and Japanese yards are able to offer easy financing terms thanks, among other things, to government export-credit guarantees.

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The OECD found that increased government loan guarantees and venture capital and equity funding were the most common government responses to the financing gap.

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