Econostrum | Economic News in the Mediterranean

European Commission provides €16 billion in financial assistance to Italy and Spain

Written by Frédéric Dubessy on Tuesday, October 27th 2020 à 17:27 | Read 452 times

Seventeen countries are already eligible for the SURE instrument (computer graphics: European Commission)
Seventeen countries are already eligible for the SURE instrument (computer graphics: European Commission)
ITALY / SPAIN. The European Commission announces, on Tuesday, October 27, 2020, the payment of a total amount of €17 billion to Italy (€10 billion), Spain (€6 billion) and Poland (€1 billion). This aid comes within the framework of the SURE instrument (Support to mitigate unemployment risks in emergency), created by the European Union to protect jobs and employees in the face of the consequences of Covid-19.

It takes the form of loans on favorable terms that "will enable these member states to cover the costs directly related to the financing of partial unemployment schemes and similar measures they have put in place in response to the coronavirus pandemic, particularly for the self-employed", as stated in a press release.

These €17 billion represent the first tranche of financial assistance. "These first payments under the SURE instrument are an important step in our efforts to preserve jobs and livelihoods. They clearly demonstrate Europe's solidarity with the citizens of Spain, Italy and Poland hit by this unprecedented crisis. We remain committed to protecting people and jobs across Europe. The SURE instrument will play a key role in achieving this goal", comments Ursula von der Leyen, President of the European Commission.


SURE will be able to finance up to €100 billion in aid.

The sum was raised through the issue of the first European social bonds, subscribed to thirteen times its capacity on October 20, 2020 in one hour. The first €10bn bond is due to be repaid in October 2030 and the second €7bn in 2040. "At a time when Europe is preparing to face a difficult winter, it is clear that last week's issue of SURE social bonds was not only a successful market operation, but also the expression of a resounding vote of confidence in the European Union's recovery plan and in our common economic future," said Paolo Gentiloni, European Commissioner for the Economy.

The three countries will eventually receive a total of €59.9 billion under the SURE programme, including €27.4 billion for Italy, €21.3 billion for Spain and €11.2 billion for Poland. 

This instrument will be able to offer financial support of up to €100 billion, whereas today €87.8 billion has been approved by the European Council for seventeen member states.


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