Sun. Apr 21st, 2019

Spain will submit a proposal for common unemployment insurance to the European Union

Spain will submit a proposal for common unemployment insurance to the European Union

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The Minister of Economy, Nadia Calviño, has announced that Spain will present in the coming days to its partners in the European Union a proposal to create a common unemployment insurance. Something they consider essential to give stability to the Eurozone in case of crisis.

This was announced Calviño at the press conference at the end of the informal council of Ministers of Economy and Finance of the European Union, held in Bucharest: "We have prepared a document that will be circulated in the coming days to the Member States precisely about this idea of ​​common unemployment insurance because it seems essential to build an EU for citizenship ».

The minister has not given details about this proposal, but this proposal comes in the debate about the future of the budgetary instrument for the Eurozone. As agreed in December by European leaders this fund should be used to improve competitiveness and reduce economic differences between countries, but Spain defends that it must also have a stabilizing component.

In this regard, the minister insisted that "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 incluce the convergence at the moment of the economic cycle of all the Member States ».

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

In this context - he has explained - different alternatives are being considered and Spain considers that keep talking about a common unemployment insurance or an investment stabilization instrument that also guarantees the stabilization of 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 an issue in which «There is no unanimous approach by the Member States but that Spain will continue to support »as it has done so far in the debates on the subject.

Complement national mechanisms

The idea of ​​a community unemployment insurance that allows complement national mechanisms against unemployment is one of the ideas that have been planted within the community debateio on how to strengthen the eurozone, without reaching consensus among the member states up to now despite the support of other institutions.

The European Commission included it in 2017, when the discussions were launched, as one of the possible stabilization mechanismsBoth the OECD and the International Monetary Fund, which had already proposed it in 2013, consider it would be useful to react to crises. Among the Member States, it supports the initiative, in addition to Spain, the German Finance Minister, the Socialist Olaf Scholz, and France He has been open to it.

But nevertheless, Holland closes in band to this extent and, in general, to any mechanism that allows individual countries to attend when they go through crises. 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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