- The European Commission today announced its funding proposal for the SURE instrument, aimed at meeting the costs of the different programs launched to reduce the impact on employment derived from COVID19
- With a total of 81.4 billion euros for 15 countries, Spain is the second country with the highest allocation, with 21.3 billion euros, behind Italy
- 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 European Commission proposes that Spain can access a total of 21,300 million euros from SURE, the new European instrument to finance ERTE and the provision of self-employed, according to the proposal announced today by the European Commission. This amount is in line with what is requested by the Spanish government.
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 agreement established a maximum of 100,000 million in loans, on the condition that the three most benefited countries do not exceed a maximum of 60,000 million.
The European Commission proposes that the SURE program mobilize in a first phase 81,400 million euros, out of a maximum of 100,000 million euros available, destined for 15 countries. These funds will be financed with European Union debt issues on the market. Member States contribute to the instrument by providing guarantees for European Union emissions.
The EC proposal It responds to the request that the Kingdom of Spain made on August 3 to access the instrument, which allows financing programs to support workers, the self-employed and companies with EU loans. The Spanish allocation, which is in line with what was requested, is the second largest behind that of Italy. The European Commission proposes that Croatia, Cyprus, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia can also access the instrument.
On May 26, the Council of Ministers authorized the granting of the necessary guarantees for the participation of Spain in the European Instrument for Temporary Support to Mitigate Unemployment Risks in an Emergency created by the European Commission (SURE).
In the case of Spain, this instrument makes it possible to finance programs such as the Temporary Employment Regulation Files (ERTE), both with regard to the benefit received by the worker and the social contributions that the employer saves.
The resources of the SURE 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 tourism sector.
Once the Council of the EU approves the Commission's proposal, with possible modifications resulting from the negotiations in this body, the loan will be disbursed to the States that request this instrument in various tranches. The first of them could be received in the fall of 2020 and, the rest, from 2021.