- The new SURE instrument provides financing from the European Union to cover the expenses of the different programs launched to reduce the impact on employment derived from the COVID19
- Spain has presented a financing proposal of more than 20,000 million euros in instruments to support workers, the self-employed and companies
- The new community instrument responds to the proposal defended by Spain to develop a safety net for people and provide a European response to the crisis
The Kingdom of Spain has asked the European Commission for access to the European instrument for mitigating unemployment risks, known as SURE, which allows financing with community loans for programs to support workers, freelancers and companies.
This program was one of the three new mechanisms launched at the European level, together with the precautionary line of the European Stability Mechanism and the guarantees of the European Investment Bank (EIB), to provide a health, economic and social response to the effects of the COVID-19 pandemic.
The SURE program will mobilize maximum resources at the community level of 100,000 million euros and will be financed with debt issues from the European Union in the market. Member States contribute to the instrument by providing guarantees for emissions from the European Union.
On May 26, the Council of Ministers authorized the granting of the necessary guarantees for the participation of Spain in the European Instrument of Temporary Support to Mitigate the Risks of Unemployment in an Emergency created by the European Commission (SURE).
In the case of Spain, this instrument allows financing programs such as the Temporary Employment Regulation Files (ERTE), both regarding the benefit received by the worker and the social contributions that the employer saves.
SURE resources can also be used to finance the extraordinary benefit for cessation of activity for the self-employed, as well as the temporary disability benefit for people who have been on leave as a result of COVID-19 or support for discontinuous permanent workers, in particular of the tourist sector.
The amount requested to finance these programs is more than 20,000 million euros.
The final amount to be received will depend, among other factors, on the volume requested by the other countries interested in this program. Once the final amount has been determined by the Council of the EU, at the proposal of the European Commission, the credit will be disbursed to the States that request this instrument in several tranches. The first of them could be received in autumn 2020 and the rest from 2021.