EU will allocate € 100 billion to maintain employment under quarantine
US, WASHINGTON (ORDO NEWS) — The European Union will allocate € 100 billion as part of a program of short-term preservation of employment under general quarantine. This was announced on Thursday at a press conference in Brussels by the head of the European Commission, Ursula von der Leyen.
“With the new solidarity tool called SURE, we are mobilizing € 100 billion to keep people in the workplace and help businesses. Thanks to this, we are joining forces with member states to save lives and provide livelihoods. This is European solidarity,” she said.
The head of the European Commission stressed that assistance will be provided, in particular, to European farmers and fishermen, who were hit hard by the crisis.
“Farmers and fishermen will also receive support. Europe‘s agriculture and fisheries play an important role in providing us with the food we eat. They have been hit hard by the crisis, which in turn has hit our food supply chains and local economies,” she added.
According to von der Leyen, the EU intends to use every available cent to overcome the effects of coronavirus. “All these measures are based on the current EU budget and will squeeze every available cent. They show the need for a strong and flexible long-term budget of the EU. The European Commission will work to ensure that the EU can count on such a strong budget, to get back on its feet and move along the path to recovery,” she stressed.
Earlier, on April 1, the European Commission announced a short-term employment program called SURE (can be translated from English as “reliable” or “confident”) under universal quarantine. However, no specific figures were provided. According to the head of the EC, this measure will be aimed at supporting countries most affected by the coronavirus pandemic, in particular Italy and Spain. During this week, this measure should be submitted for approval to all countries of the community.
Earlier, the EU suspended the basic economic document of the euro zones – the Stability and Growth Pact, which sets the limit of the budget deficit of the countries of the community at 3% of GDP, and the limit of the total public debt at 60% of GDP. This will allow European countries to attract loans without external restrictions to support their economies affected by the coronavirus.
Thus, the European Commission intends to apply the methods of the widest possible state aid to enterprises to combat the recession as a result of prolonged quarantines. This method is directly opposite to the policy of budget discipline, which was used in the eurozone during the fight against the sovereign debt crisis in 2010-2014.
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