EU: SURE instrument adopted to support short-time working schemes

The EU has officially adopted its instrument that provides temporary financial assistance to help workers keep their jobs during the crisis. Following the EU ambassadors agreement during the week 11 May, EU Member State finance ministers gave their approval to the EU’s SURE* mechanism on 19 May. SURE was initially presented by the EU Commission at the beginning of April (c.f. article No. 11800). It aims to provide financial assistance in the form of loans to Member States which have seen their expenditure outlays increase dramatically since 01 February as a result of the introduction of both short-time working or similar schemes and measures, as well as health measures (particularly in the workplace). SURE, which could be worth up to €100 billion, should become operational by 01 June, although the implementation process could hit delays due to the involvement of national parliaments in granting loan guarantees. SURE will remain in place until 31 December 2022, although it could be extended in six-month increments if the severe economic disruption caused by the Covid-19 pandemic continues. *SURE – Support to mitigate Unemployment Risks in an Emergency