Brussels (AFP)

The European Commission proposed Thursday to create an instrument to guarantee up to 100 billion euros the national employment support plans put in place due to the coronavirus epidemic.

This instrument will allow member states to obtain EU loans "on favorable terms" to help them "cover the costs directly linked to the creation or extension of national short-time working schemes", explains the European executive in a press release.

"We are joining forces with those of the Member States to save lives and protect livelihoods. This is European solidarity," said Commission President Ursula von der Leyen at a conference. hurry.

To finance loans to states, the Commission would borrow on the financial markets, which would allow member countries to benefit from "low borrowing costs" from the EU, the statement said.

These loans, intended for countries in the "most urgent" situations, would be reinforced by "a system of voluntary guarantees from the Member States".

A minimum amount of 25 billion euros in guarantees will have to be mobilized for the instrument to operate at full capacity, underlines the Commission.

The proposal is due to be presented to EU finance ministers on Tuesday, who are meeting by videoconference to discuss ways to revive activity in Europe once the Covid-19 pandemic has been brought under control.

Italy and Spain, the most affected by the virus, are standing up against Germany and the Netherlands, which so far have refused their endorsement of a large-scale budgetary instrument jointly funded to avoid a recession major in Europe.

"All the member states have already set up national partial unemployment schemes in one form or another," notes the Commission.

In Germany, where the system was set up in 2009 during the financial crisis, the State pays two thirds of the salary of the employees concerned.

In France, the State must cover nearly 84% of the net salary of the people affected, up to a gross salary of 4.5 times the minimum wage. The scheme now concerns four million employees in 400,000 companies.

© 2020 AFP