Ambassadors of the EU's 27 Member States agreed on Friday on a European Commission project to provide states with up to €100 billion in loans to support temporary unemployment programs.
The project, known as SURE (Support to mitigate Unemployment Risks in an Emergency), is one of three safety nets agreed on by finance ministers in early April, the other two consisting of loans to member states via the European Stability Mechanism (ESM) and guarantees to companies via the European Investment Bank (EIB), totalling around €540 billion.
The package should be operational by 1 June, with expenses incurred since 1 February being eligible.
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With SURE, the Commission will raise funds on the international capital markets on behalf of the EU. The loans will be supported by the EU budget and the guarantees provided by the Member States according to their share in the EU's Gross National Income. The total amount of the guarantees will be EUR 25 billion.
The instrument will be operational until 31 December 2022, with a possible extension if the severe economic disruption caused by the new coronavirus (Covid-19) pandemic persists.
The Brussels Times