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The european SURE instrument for €100bn of guaranteed loans to Member States becomes operational



           


SURE is open to all Member States (photo: C. Garcia)
SURE is open to all Member States (photo: C. Garcia)
EU. The European Commission welcomes the activation of the SURE instrument in a press release on Tuesday 22 September 2020. It comes with the finalisation of the approval and signature procedures in all Member States establishing guarantee agreements with the European Commission for a total amount of €25 billion.

Announced at the beginning of April 2020 by Ursula von der Leyden, President of the European Commission, this new facility called Support to mitigate unemployment risks in emergency (SURE) enables the European Union (EU) to raise up to €100bn on the financial markets to lend to the 27 Member States on favourable terms. A European Commission guarantee for 25% of this amount will "increase the volume of loans available to Member States, while maintaining the EU's good credit rating and strong position on the international capital markets", the press release says.

The loans will be used to finance the various national employment support measures (such as short-time working) implemented to mitigate the economic effects of the health crisis. The European Commission has already presented to the European Council proposals for decisions to grant financial support of €87.3 billion to 16 Member States under the SURE instrument (see table below). Italy will be the first beneficiary (€27.4 billion), followed by Spain (€21.3 billion) and Poland (€11.2 billion).

The proposals presented by the European Commission to the European Council under the SURE instrument (source C.E.)

Belgium €7.8 billion Latvia €192 million
Bulgaria €511 million Lithuania €602 million
Czech Republic €2 billion Malta €244 million
Greece €2.7 billion Poland €11.2 billion
Spain €21.3 billion Portugal €5.9 billion
Croatia €1 billion Romania €4 billion
Italy €27.4 billion Slovakia €631 million
Cyprus €479 million Slovenia €1.1 billion


Eric Apim


Tuesday, September 22nd 2020


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