The European Union has launched a plan to ensure employment in the regions most affected by coronavirus, like Spain or Italy. This was announced by Ursula von der Leyen, President of the European Commission through her Twitter account.
European solidarity in action! @EU_Commission Proposes SURE job maintenance aid scheme to support the most affected EU countries, including IT & ES. It will save millions of jobs during the crisis and allow us to quickly relaunch the European economic engine. pic.twitter.com/oCGkfhuBtd
– Ursula von der Leyen (@vonderleyen) April 1, 2020
'Sure' will be sustained thanks "to the solidarity of other Member States", that is, thanks to the public guarantees provided by all the Member States. The first calculations of Brussels estimate that the aid could reach up to 100,000 million euros, according to the Financial Times.
Despite the fact that the specific details are not yet known, FT anticipates that it would be financed by going out to the markets, using the emergency tools of the European Financial Stability Mechanism, as was done in the 2008 economic crisis. Collateral for these emissions would be unspent community funds and direct guarantees from the states. With the obtained, affected governments could request lines of credit.
"Companies are paying the wages of their employees even though they are not making profits now. So Europe launches a new initiative called 'Sure'"explains Belgian politics.
The European Union hopes that these new aid save millions of jobs During the crisis, in addition to allowing a rapid relaunch of the European economic engine, "regions such as Milan and Madrid are important pillars of the European economy."
"For this reason we have developed an aid scheme to maintain employment to help Italy, Spain and all the countries that have been hit hard, "explains von der Leyen.
This comes after the failure of the Eurobonds, now known as Coronabonds. Germany and Holland, among other countries, have opposed this joint debt issue as a solution to face the European sovereign debt crisis.
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