The pandemic represented a turning point of the debate on the European economic governance. All in all, the combination of existential (public health) crisis and experiential learning from the errors of the Great Recession led EU policymakers, along with the Commission and the ECB at the helm and with strong support from the European Parliament, to adopt a more solidaristic approach to respond to the COVID-19 crisis. In such a context, four taboos were temporarily broken, thus opening the room for a debate on the future of economic governance for the EU.
Short-time work (STW) schemes have proved to be the ace of Member States’ response to the social and employment crisis induced by the outbreak of the COVID-19 pandemic. In this scenario, the proposal of the Commission for a temporary Support to mitigate Unemployment Risks in an Emergency (SURE), is to be welcomed as a bold and innovative move. Is the time ripe for the Commission to put the proposal forward for a permanent SURE?
Are we SURE? A critical assessment of the Commission’s proposal for temporary Support to mitigate Unemployment Risks in an Emergency
On 1 April, the President of the European Commission, Ursula von der Leyen, announced the proposal to create a new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE), to allow for financial aid in the form of loans from the Union to those Member States which are facing sudden increases in public expenditure for the preservation of employment.