September 23, 2020

Brussels will study Spain’s request to obtain 20,000 million from the fund against unemployment, not yet available


The European Commission will study the request of the Government of Spain to obtain a loan of 20,000 million from the European fund against unemployment when this instrument is “available”, something that the European authorities hope will happen soon because the procedure is “about to end” .

Spain asks for more than 20,000 million from the European fund to finance the ERTE and the provision to the self-employed

Spain asks for more than 20,000 million from the European fund to finance the ERTE and the provision to the self-employed

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“We will evaluate all formal requests from the We are members when the SURE is available,” said a spokesman for the Community Executive to Europa Press, about the € 100 billion fund designed to “support national regimes to reduce working time o similar measures. ”

Brussels will go to the debt markets to finance this extraordinary tool, created to counter the impact of the pandemic. But first you need all the Member States to have signed their national guarantees to back the loans.

“This process is about to end,” said the spokesman, although he has not detailed the specific date. Until then, the European Commission maintains “preliminary contacts” with European capitals to find out how many are interested in using SURE and how much money they will request.

The Community Executive has advanced that these conversations have shown that “a majority” of the Member States have shown their interest in accessing these funds. However, only the request from Spain is known to date, which on Monday has requested more than 20,000 million euros, as reported by the Ministry of Economic Affairs and Digital Transformation.

Spain, first section in autumn

Specifically, the Spanish Government is confident of receiving the first tranche of the future loan in the fall, a period compatible with the calendar established by the regulation that creates the SURE fund, formally approved in mid-May of this year.

The loan for each country that requests it must be approved by the rest of the Member States based on a previous proposal from the European Commission. To prepare it, Brussels must consult the interested partner to verify that it has registered a “sudden and serious increase” in the public spending planned to finance programs such as ERTE or aid to the self-employed.

Afterwards, the Council of the EU will adopt a decision approving the loan, which will also set its amount, the maximum average maturity, the formula for calculating the interest rate, the maximum number of terms and the period of availability, among other issues. .

In any case, the loans granted to all countries that request it under this instrument may not exceed 100,000 million euros. The regulation also imposes another limit for the three most benefited partners, which together cannot exceed 60,000 million. .

The SURE fund is one of the three safety nets agreed by the Eurogroup in the early stages of the pandemic, along with a special line of credit of € 240 billion through the ESM and another € 200 billion in EIB loans to the private sector

The initial idea was that this European unemployment fund would be available from June 1 this year, a deadline that was impossible to meet due to delays in national procedures to approve the necessary guarantees. The Council of Ministers authorized the guarantees for the participation of Spain on May 26.

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