September 19, 2020

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

Spain has asked the European Commission for access to the European instrument for the mitigation of unemployment risks, known as SURE, for an amount of more than 20,000 million euros to finance with community loans the support programs for workers, freelancers and companies, as reported by the Ministry of Economic Affairs and Digital Transformation.

This program was one of the three new mechanisms launched at the European level, together with the precautionary line of the European Stability Mechanism and the guarantees of the European Investment Bank (EIB), to provide a health, economic and social response to the effects of the Covid-19 pandemic.

The SURE program, whose access applications are open until this Friday and is expected to be requested by some 18 EU countries, will mobilize maximum resources at the community level of 100,000 million euros and will be financed with debt issues from the European Union in the market. Member States contribute to the instrument by providing guarantees for emissions from the European Union.

On May 26, the Council of Ministers authorized the granting of the necessary guarantees for the participation of Spain in the European Instrument of Temporary Support to Mitigate the Risks of Unemployment in an Emergency created by the European Commission (SURE).

In the case of Spain, this instrument allows financing programs such as the Temporary Employment Regulation Files (ERTE), both regarding the benefit received by the worker and the social contributions that the employer saves.

The SURE resources can also be used to finance the extraordinary benefit for cessation of activity for the self-employed, as well as the temporary disability benefit for people who have been on leave as a result of the Covid-19 or support for discontinuous permanent workers, in particular of the tourist sector.

The amount requested to finance these programs is more than 20,000 million euros, as indicated by the Ministry of Economic Affairs, although it points out that the final amount to be received will depend, among other factors, on the volume requested by the other interested countries in this program.

Once the final amount has been determined by the Council of the EU, at the proposal of the European Commission, the credit will be disbursed to the States that request this instrument in several tranches. The first of them could be received in autumn 2020 and the rest from 2021.


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