European Commission lends up to EUR 100 billion to finance temporary unemployment | Economy | Money

Archive image.  President of the European Commission Ursula von der Leyen.  (04/02/2020)
Photo News Archive image. President of the European Commission Ursula von der Leyen. (04/02/2020)

The European Commission will start issuing social bonds in the second half of October to finance the temporary unemployment schemes used by Member States in the outbreak of the corona pandemic.

The Commission on Wednesday approved the framework for issuing the social bonds. This should assure investors that the bonds serve a social purpose. The funds raised go to the new SURE program. With this, the Commission wants to provide soft loans to Member States that have introduced short-time working and similar schemes to safeguard jobs during the corona lockdown.

7.8 billion for Belgium

The program turns out to be attractive. The Commission has already pledged a total of EUR 87.8 billion to 17 Member States. Belgium will receive 7.8 billion euros of this. The Commission plans to raise up to EUR 100 billion. For this, the Member States have provided EUR 25 billion in guarantees. These allow the Commission to borrow large amounts without jeopardizing the strong creditworthiness of the European Union.

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