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Report confirms SURE's success in protecting jobs and incomes

The Commission yesterday published its first preliminary assessment of the impact of SURE, the €100 billion instrument designed to protect jobs and incomes affected by the COVID-19 pandemic.

The report finds that SURE has been successful in cushioning the severe socio-economic impact resulting from the COVID-19 crisis. It has helped to ensure that the increase in unemployment in the beneficiary Member States during the crisis has been significantly smaller than during the global financial crisis, despite them experiencing a larger decrease in GDP.

SURE is a crucial element of the EU's comprehensive strategy to protect citizens and mitigate the severely negative socio-economic consequences of the COVID-19 pandemic. It provides financial support in the form of loans granted on favourable terms from the EU to Member States to finance national short-time work schemes, and other similar measures to preserve employment and support incomes, notably for the self-employed, and some health-related measures. The Commission has so far proposed a total of €90.6 billion in financial support to 19 Member States. SURE can still make over €9 billion of financial assistance available and Member States can still submit requests for support. The Commission stands ready to assess additional top-up requests from Member States in response to the resurgence of COVID-19 infections and new restrictions.

Main findings

The Commission's report has found that the instrument supported between 25 and 30 million people in 2020. This represents around one quarter of the total number of people employed in the 18 beneficiary Member States.

It also estimates that between 1.5 and 2.5 million firms affected by the COVID-19 pandemic have benefitted from SURE, allowing them to retain workers.

Member States have saved an estimated €5.8 billion in interest payments by using SURE, compared to if they had issued sovereign debt themselves, thanks to the EU's high credit rating. Future disbursements will likely generate further savings.

Feedback from beneficiaries shows that SURE support played an important role in the creation of their short-time work schemes, and in increasing their coverage and volume.

Yesterday's report also covers the borrowing and lending operations to finance SURE. It finds that demand from Member States for the instrument has been strong, with more than 90% of the total €100 billion envelope available under SURE already allocated. Interest from investors in SURE bonds has been similarly robust. By the cut-off date of the report, the Commission raised €53.5 billion in the first four issuances, which were on average more than ten times over-subscribed. All funds have been raised as social bonds, giving investors confidence that their money goes towards measures with a real social purpose, sustaining families' incomes at a time of crisis. The EU's ability to raise money for SURE was supported by a €25 billion guarantee from all Member States, a strong signal of European solidarity.

Click here for the full press release

 

Original article link: https://ec.europa.eu/commission/presscorner/detail/en/IP_21_1209

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