EU: finance ministers give green light to financial support instrument for short-time work measures in member states

It is “in the spirit of solidarity and in light of the exceptional nature of the Covid-19 crisis” that the finance ministers of the European Union agreed, yesterday on 9 April, on the “need to establish, for the duration of the emergency, a temporary loan-based instrument for financial assistance” in order to protect jobs. As part of the agreement on an economic response to the coronavirus crisis, they are demanding that the initiative presented by the European Commission on 2 April (see article n°11800), dubbed SURE, which will provide financial assistance during the crisis in the form of loans granted on favourable terms from the EU to member states – up to a combined total of €100bn – to support efforts to protect workers and jobs, be implemented as soon as possible. The ministers warn however that the member states’ “position on this emergency instrument does not pre-judge the position on future proposals related to unemployment insurance”, which the Commission also has in the pipeline.