On 9 April, the EU Ministries of Financing have agreed to work on a comprehensive economic policy response to the COVID19 outbreak. They have agreed on a EUR 500 billion packages of safety nets – one for workers, one for businesses and another one for countries.
About SURE loans
- Available money. EU financial assistance to the member states that request support, in the form of loans up to €100 billion granted on favourable terms. There are no pre-allocated envelopes for members states.
- Guarantee from members states. The new fund will be available after the member states offer a guarantee of minimum €25 billion. The guarantees will be on a voluntary basis and it will be irrevocable.
- Areas for financial assistance. These loans (not grants) will assist member states to address sudden and severs increases in public expenditure to preserve employment. It will cover the costs directly related to the creation or extension of national short-time work schemes and similar measures for self-employed.
- Credit’s conditions. To finance the loans to member states, the Commission will borrow on financial markets. The Commission will then provide the loans to member states which will benefit from the EU's strong credit rating and low borrowing costs. There will be caps for the borrowing available for each member state.
- Temporary character. The European Commission will review every six months whether the exceptional circumstances causing the severe economic disturbances still exist.
- Complementary approach. The loans will complement the national measures taken by affected member states.
- Member states where the COVID-19 outbreak has led to a sudden and severe increase in public expenditure due to national measures adopted as from 1 February 2020.
- National measures should be directly related to the creation or extension of short-time work schemes and to similar measures for self-employed persons. Evidence of the sudden and severe increase in actual and possibly also planned expenditure for short time work schemes or similar measures.
For cities: practical considerations