The European Commission has asked the Council on Monday to grant Spain an aid of up to 21.3 billion euros to meet the costs of ERTEs within the framework of SURE, a temporary European instrument to support member states to mitigate risks of job destruction during the COVID19 crisis.

Although the last word is the Council, where the twenty-seven member states of the European Union are represented, the Commission has given the green light to the plan presented by the Spanish government. The aid will come in the form of loans with advantageous conditions , once the Council of the 'ok' in the coming weeks.

"We must do everything possible to preserve employment and livelihoods. Today we have taken a great step in this regard," said in a statement the president of the European Commission Ursula Von der Leyen, who defends that the instrument must serve to protect employment and workers and, he adds, "is a clear symbol of solidarity in the face of an unprecedented crisis."

Seventeen countries have asked to have access to this financial aid, although for now, the Commission has only made official its assessment of fifteen of these plans. Only Italy, with 27,400 million, surpasses Spain in the amount of aid. In total, the Commission has accepted plans worth 81.4 billion out of the 100 billion envisaged for Belgium, Bulgaria, the Czech Republic, Greece, Croatia, Cyprus, Latvia, Lithuania, Malta, Poland, Romania, Slovenia and Slovakia, in addition to Spain and Italy. Portugal and Hungary have also submitted formal applications but Brussels is still studying them.

The main objective of this system that the Commission launched in April is to support member countries in their efforts to face the increase in public spending to pay for temporary reduction systems in working time, such as ERTE in Spain, and avoid job destruction. The aid must be used for expenses directly related to the financing of these systems or other measures, for example, aimed at supporting the self-employed in the face of the consequences of the crisis.

Although it is the Commission that in principle grants the loans, the system is based on a network of guarantees provided by the member states . Therefore, the Council will have the last word on the plans, based on the executive's proposal. SURE, together with the credit line in the context of the European Stability Mechanism, created during the 2008 crisis, is one of the financial instruments launched by the European Union to facilitate the financing of the 27 during the COVID19 crisis and face the economic and social impact of it. To this must also be added the recovery fund worth 750 billion that the twenty-seven approved in July.

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  • European Comission
  • Spain
  • Unemployment

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