The Commission welcomes the activation of the SURE instrument, which will provide up to €100 billion in financial support to help protect jobs and workers affected by the coronavirus pandemic.
This follows the finalisation of national approval procedures and signatures by all Member States to provide for the guarantee agreements with the Commission worth a total of €25 billion. The voluntary commitment of guarantees is an important expression of solidarity in the face of an unprecedented crisis.
These guarantees are necessary to expand the volume of loans that can be provided to Member States while safeguarding the Union’s prime credit rating and strong position on international capital markets. The Commission has already presented proposals to the Council for decisions to grant financial support of €87.3 billion to 16 Member States under the SURE instrument.
Once the Council adopts these proposals, the financial support will be provided in the form of loans granted on favourable terms from the EU to Member States. These loans will assist Member States in addressing sudden increases in public expenditure to preserve employment in the context of the pandemic crisis.
Specifically, they will help Member States to cover the costs directly related to the financing of national short-time work schemes, and other similar measures they have put in place as a response to the coronavirus pandemic, in particular for the self-employed.
As an ancillary, SURE could also finance some health-related measures, in particular at the work place, used to ensure a safe return to normal economic activity.
*Source: European Commission
By: N. Peter Kramer
