The European Commission has submitted to the Council proposals for decisions on the granting of financial support from the SURE instrument in the amount of EUR 81.4 billion for 15 Member States.

The SURE instrument is an extremely important element of the Commission's comprehensive strategy to protect citizens and mitigate the serious socio-economic consequences of the coronavirus pandemic. It is one of three safety nets agreed by the European Council to protect workers, businesses and countries.

Once approved by the Council, the financial support will take the form of Union loans to Member States on favorable terms. The loans will help Member States to cover sudden increases in public expenditure on job preservation, ie the direct costs of financing national part-time programs and other similar measures introduced, especially for the self-employed, due to the coronavirus pandemic.

After consulting the Member States requesting support and assessing their applications, the Commission proposes that the Council approve the granting of financial support as follows:

Belgium

7.8 billion euros

Bulgaria

511 million

Czech Republic

2 billion euros

Greece

2.7 billion euros

Spain

21.3 billion euros

Croatia

1 billion euros

Italy

27.4 billion euros

Cyprus

479 million

Latvia

192 million

Lithuania

602 million

Malta

244 million

Poland

11.2 billion euros

Romania

4 billion euros

Slovakia

631 million

Slovenia

1.1 billion euros

The SURE instrument has a total of € 100 billion at its disposal to provide financial support to all Member States. The Commission submitted to the Council proposals for decisions on the granting of EUR 81.4 billion in financial support to 15 Member States. Portugal and Hungary have already submitted official applications, which are currently in the evaluation process. The Commission expects a proposal to grant support to Portugal and Hungary soon. Member States which have not yet done so may submit a formal request.

Loans to SURE Member States will be based on a system of voluntary guarantees from Member States. The Commission expects that the process of finalizing the Member States' guarantee agreement with the Commission will be completed soon.

Statements of members of the Board

President Ursula von der Leyen said: We must do everything in our power to protect jobs and enable people to earn a living. That is why today is important: just four months after I proposed it, the Commission is proposing to provide € 81.4 billion from the SURE instrument to preserve jobs and protect workers affected by the coronavirus pandemic across the Union. The SURE instrument is a clear symbol of solidarity in an unprecedented crisis. Europe is determined to protect its citizens.

Valdis Dombrovskis, executive vice president in charge of the economy in the interest of the citizens, said: Workers are suffering from terrible insecurity and we need to help them overcome this crisis and restart our economies. That is why the Commission has proposed the SURE instrument - to contribute to the protection of workers and facilitate economic recovery. We welcome today the strong interest shown by Member States in funding on favorable terms from the SURE instrument to support part-time programs and similar measures. We expect an accelerated decision-making process so that loan repayments can begin.

Commissioner for Employment and Social Rights Nicolas Schmit said: The SURE instrument is one of the first safety nets we have decided to introduce in order to guarantee workers an income even at the time of suspension and to protect their jobs. Therefore, the SURE instrument will contribute to a faster recovery. All Member States will soon provide guarantees totaling € 25 billion, and we are proposing a total of € 81.4 billion in loans for the 15 Member States that have applied for support. It is a testament to European solidarity, proof that together we are stronger for the benefit of all European citizens.

Economy Commissioner Paolo Gentiloni said: Part-time programs have been extremely important in mitigating the employment impact of the COVID-19 pandemic. The SURE instrument is the European Union's contribution to these necessary safety nets. It will contribute to protecting workers from unemployment and preserving the jobs and skills that will be needed in the recovery of our economies. The great interest of our Member States confirms the exceptional importance of this instrument.

On 2 April 2020, the Commission proposed the SURE instrument in response to the coronavirus pandemic. On 19 May 2020, the Member States of the Council adopted a regulation establishing the SURE instrument. Each Member State's contribution to the total amount of the guarantee corresponds to its relative share in the European Union's total gross national income (GNI) based on the EU budget for 2020.

 

More information on the topic can be found at the following link: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1496