New EU instrument for saving jobs -SURE

SURE is an acronym for "Support to mitigate Unemployment Risks in an Emergency". The SURE instrument is one of the more valuable EU instruments in this pandemic caused by the COVID-19 virus. It foresees EUR 100 billion for a part-time support program, guaranteed by all Member States. The purpose of this instrument is to preserve jobs that are at risk from the coronavirus pandemic.
This is financial support in the form of very favorable EU loans to Member States totaling EUR 100 billion. These loans would help Member States better cope with the extraordinary increase in public expenditure on employment protection, and would be intended to cover costs directly linked to national part-time programs or other measures taken by Member States, for example for the self-employed. This means that a part-time State aid scheme must first be adopted at Member State level and only then can a loan be sought to cover these costs. According to the Commission, all Member States have some form of part-time program, which are very different from one another.
It is an instrument similar to that used by some members during the 2008 financial crisis, such as the German Kurzarbeit program. Under this model, the state paid part of the workers' wages, which allowed companies to retain workers and reduce costs during the crisis. Following the outbreak of the coronavirus pandemic, about 470,000 German companies have sought state support under such a program. Under this program, the German government covers two-thirds of the payroll of employers who shorten their working hours.
The SURE would allow firms in difficulty to temporarily shorten their working hours, and the state will pay workers for those hours they do not work. Workers who do not work can use this time to learn new skills, which they and their employer will use.

Comments are closed.