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Belgium has asked the European Union for 7.77 billion euros in financial support for its system of temporary unemployment and similar measures. The Deputy Prime Minister and Finance Minister Alexander De Croo (Open VLD) announced this on Monday.
With a new financial instrument called SURE, the EU aims to support Member States that use temporary unemployment systems during the Corona Period. You should prevent companies from laying off employees when the economic crisis is at its worst. The European Commission can grant member states cheap loans totaling EUR 100 billion.
7.77 billion euros
Belgium has now applied to receive such cheap loans in the amount of 7.77 billion euros. “This amount,” says Minister De Croo, “represents the Belgian public expenditure resulting from national measures directly related to temporary unemployment and similar measures to deal with the economic and social consequences of the exceptional circumstances of the COVID- 19 outbreak. ” . ”
The federal government accounts for 6.21 billion euros of the requested aid. The other expenditures were made by the regions and the municipalities. The first series of loans requested by Belgium and other countries is expected to be disbursed between September 2020 and mid-2021.
“This shows that Europe can act quickly in times of crisis and is capable of concrete solidarity on a large scale. Member States can only effectively address the negative social and economic consequences of the crisis if they work closely together, of which SURE is an excellent example, ”says De Croo.
According to him, SURE helps Belgium to diversify the financing of its public debt while getting additional support for the financing needs of local and regional authorities. “In this way, SURE is helping the Belgian government to enable more than 1 million employees, self-employed and SMEs to overcome this difficult time.”