Agreement on Sure, the EU redundancy fund. But to take the money, there is time

The Italian government rejoices: Sure is there to be just an idea today. The European credit line, which will be able to provide loans of up to € 100 billion to support workers who lose their jobs, has taken another step forward today. Money, money, money. Maybe they came because now the only right recipe for saving economies is their speed of entry into the portfolios of businesses and families. But, as usual, the times of the European bureaucracy do not have Achilles’ feet (perhaps only the heel). Today, in fact, despite the enthusiastic tweet of the Eurocommissar for the economy, Paolo Gentiloni: “Definitive go-ahead this morning in Sure», the ambassadors to the EU have reached only a political agreement. Therefore, very few resources. The Sure will be able to provide Member States with up to € 100 billion of loans on favorable terms. It is part of the three safety nets – worth € 540 billion – for employment and workers, businesses and Member States, approved by the Eurogroup on April 9, 2020. EU leaders approved the agreement on April 23 and asked for the package to be operational by June 1, 2020. So it was already abundantly almost a month after the first decision and still c It is only an agreement, and not only that, the regulation will now have to be formally adopted by the Council in written procedure and the adoption is scheduled for May 19. Only then will the Commission raise funds on the markets international capital on behalf of the EU. So considering the technical times the money could arrive soon. But no. Because the loans granted under Sure will be supported by the EU budget and by guarantees provided by the Member States according to their share in the Union’s GDP. The total amount of guarantees will be € 25 billion.
But the Sure will become available after all the Member States have provided their guarantees, therefore not immediately, even if it will be operational until 31 December 2022 afterwards. In short, if it is not clear when it will be possible to see the money in cash, the certainty is that until 2022 they can be taken. Last notation. There are 100 billion at stake. But there are 27 EU countries. So with the average, even for Trilussa chicken, it reaches a maximum of 3.7 billion per country.



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