Mon. Apr 22nd, 2019

Spain will promote European unemployment insurance

Spain will promote European unemployment insurance

The Minister of Economy, Nadia Calviño, announced today that Spain will present its partners in the coming days European Union a proposal for the creation of a common unemployment insurance, an element that they consider essential to allow to stabilize the economy of the eurozone in cases of crisis.

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"We have prepared a document that will be circulated in the coming days to the member states precisely on this idea of ​​common unemployment insurance because we think it is fundamental to build an EU for citizenship," Calviño said at a press conference at the end of the informal council of Ministers of Economy and Finance of the EU in Bucharest.

This contribution, of a technical nature and on which the minister did not give specific details, is part of the debates regarding the future budgetary instrument for the eurozone that the ministers are designing for June.

As agreed in December by European leaders this fund should be used to improve competitiveness and reduce economic differences between countries, but Spain argues that it should also have a stabilizing component.

"This instrument can not repeat what the structural funds do, which deal precisely with convergence and cohesion. From our point of view it is necessary that this convergence includes the convergence at the moment of the economic cycle of all the Member States, "insisted the minister.

This difference in the economic situation of the euro states is one of the "potentially most destabilizing elements," Calviño said, adding that right now there is no instrument to avoid a deep recession in one of the member states.

In this context - he explained - different alternatives are being considered and Spain considers that it is appropriate to continue talking about a common unemployment insurance or an investment stabilization instrument that also guarantees the stabilization of the national unemployment insurance.

"There are different models at the international level and there would be different options in terms of timing and ambition," he added.

The Spanish minister acknowledged that this is a matter in which "there is no unanimous approach on the part of the member states but that Spain will continue to support" as it has done so far in the debates on the subject.

The idea of ​​a community unemployment insurance that complements the national mechanisms against unemployment is one of the ideas that have been planted in the community debate on how to strengthen the eurozone, without reaching consensus among the member states, despite the support of other countries. institutions.

The European Commission included it in 2017, when the discussions were launched, as one of the possible stabilization mechanisms and both the OECD and the International Monetary Fund, which had already proposed it in 2013, consider it useful for reacting to crises.

Among the Member States, the initiative is supported, in addition to Spain, the German Finance Minister, the Socialist Olaf Scholz, and France has been open to it.

However, Holland closes in band to this measure and, in general, to any mechanism that allows to assist individual countries when they go through crisis.

This division prevented the summit of heads of state and government of the euro in December from agreeing on a budget for the eurozone with a stabilizing capacity, although it decided to continue working on it for the future.


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