There is a lesson to learn in leadership and compassion from the European Union. Despite most of its member nations severely hit by the corona virus pandemic economy shut downs, the Council of the European Union is going to raise funds on international capital markets on behalf of the EU.
Some severely affected member nations are seeking financial help from the Council, that, it is confirmed, has now adopted the regulation for temporary Support to mitigate Unemployment Risks in an Emergency (SURE).
This will allow financial assistance up to 100 billion euro in the form of loans to member states, according to an official announcement by the Council.
It is worth noting that the Northern side of the EU was not comfortable in giving away financial assistance to the countries in the South and insisted that only loans be offered, if at all. The temporary measure will offer loans to member states, under favourable terms only.
SURE has been seen as one of the three safety nets, worth €540 billion, for jobs and workers, businesses and member states, contained in the Eurogroup report agreed on 9 April 2020. EU leaders endorsed the report on 23 April and called for the package to be operational by 1 June 2020.
Through this temporary arrangement, workers will get to keep their jobs amidst the pandemic situation, where member countries are now looking to find ways to finance themselves in a sudden and severe increase of national public expenditure.
SURE loans will be backed by the EU budget and guarantees provided by member states according to their share in the EU’s GNI. The total amount of guarantees will be €25 billion, according to official statement made by the General Secretariat of the Council.