EU, Ecofin: green light to "Sure" to support unemployment from Covid

2020-05-19T12:46:36.952Z

Green light from Ecofin to "Sure", the temporary scheme which will provide Member States with up to € 100 billion in loans on favorable terms to help workers maintain their jobs during the crisis. The facility was adopted as part of the emergency support package to address the economic impact of the Covid-19 crisis. Sure allows Member States to ask for EU financial support "to help finance the sudden and severe increases in national public expenditure - starting from February 1, 2020 - related to working time reduction schemes and similar measures, also for self-employed workers, or to certain health measures, especially in the workplace, in response to the crisis ". Sure is one of three safety nets - valued at € 540 billion - for employment and workers, businesses and member states, approved by the Eurogroup on April 9, 2020. EU leaders approved the agreement on 23 April and requested that the package be operational by 1 June 2020. To provide Member States requesting financial assistance on favorable terms, the Commission will raise funds on international capital markets on behalf of the EU. Loans granted under Sure will be supported by the EU budget and guarantees provided by the Member States according to their share in the Union's GNI. The total amount of guarantees will be € 25 billion. While available to all Member States, the Sure tool will be a particularly important safety net for workers in the hardest hit economies. Formally, financial assistance will be granted through a decision adopted by the Council on a proposal from the Commission. Sure will become available after all Member States have provided their guarantees and will then be operational until 31 December 2022. On a proposal from the Commission, the Council may decide to extend the period of availability of the instrument, each time for an additional period of 6 months, if serious economic disturbances caused by the Covid-19 pandemic persist.