WIREDGOV

The European Commission would like to respond to various media reports claiming that President Juncker is “asking for” a European unemployment insurance. This is a distortion of the message conveyed by President Juncker and based on cutting short the full answer he gave to this question in an interview with “Welt am Sonntag” – which is available in full length in English. President Juncker is not asking for a new financial instrument. In fact, the European Commission in its proposal for the multiannual financial framework has already proposed a shock-absorption mechanism to cope with asymmetrical, external shocks – this can also include a re-insurance for national unemployment insurance schemes.

Full verbatim of the question and answer:

WELT AM SONNTAG: In southern Europe in particular, however, many people are demanding that the EU become more social. Would a European unemployment insurance scheme, for example, be a good idea

Juncker: Even though I am very much in favour of a European unemployment insurance, this must not be a 'carte blanche' for countries that do not carry out reforms and find themselves in difficulties as a result. In our proposal for the medium-term financial planning, the Commission put forward two instruments: 25 billion euro for a reform support programme and 30 billion euro for a stabilisation function, a shock-absorption mechanism to cope with asymmetrical, external shocks – this can also include a re-insurance for national unemployment insurance schemes. This instrument could help to mitigate sudden economic crises in a particular country caused by external developments, and thus provide re-insurance at European level for national insurance systems. It is not right that a particular EU country has to reduce unemployment benefits because of rising jobless numbers in a crisis that is not of its making. It is important not to respond to crises with the wrong type of spending cuts, lowering investments, education spending and unemployment benefits.

Press contacts:

• Mina ANDREEVA (+32 2 299 13 82)
• Daniel ROSARIO (+ 32 2 295 61 85)

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