Prepared for the crisis: Juncker wants European unemployment insurance
What happens when the next economic crisis comes? The head of the European Commission, Jean-Claude Juncker, calls for a Europe-wide unemployment insurance to cushion the consequences of a recession.
EU Commission President Jean-Claude Juncker has called for the introduction of a European unemployment insurance. "It must not be that an EU country in the event of a no-fault crisis due to rising unemployment, the unemployment benefit must cut," Juncker told the "World on Sunday". Rather, it was important that in crisis situations not the wrong end be saved, "so in investment, education and unemployment benefits."
Juncker suggests that a European solution in the event of an economic crisis could support national unemployment insurance systems. He limited, however, that a European unemployment insurance "should not be a free ticket" for countries that "do not implement reforms and thus get into trouble".
On financing, Juncker said the EU Commission had earmarked two sources of funding in the draft medium-term budget plan: "25 billion euros to finance structural aid programs, and 30 billion euros for a cushioning mechanism against asymmetric external shocks". This could include reinsurance for national employment insurance.
Federal Finance Minister Olaf Scholz (SPD) had already submitted plans for a European unemployment insurance in mid-October. According to this, EU states should feed a "European unemployment stabilization fund" with contributions that are based on the respective economic power. From the fund, national unemployment insurance could be expected to lend money if the country is hit by an economic crisis.