The measures for a temporary instrument to help finance national short-time working schemes (SURE), announced by the European Commission on Thursday 2 April, received a rather lukewarm reception in the European Parliament, rather warm from the right and rather cold from the left, where it is criticised that the proposal is built on a vast system of loans rather than subsidies.
Thus, the Spanish Esteban González Pons, Vice-President of the EPP group, contacted by EUROPE, welcomed the European Commission's proposal, which will be a “fundamental tool to combat the economic consequences of COVID-19, in particular the risk of unemployment” which could be massive.
The French Sylvie Brunet (Renew Europe), for her part, reminded us that this was a request from the French RE delegation, which will provide a beneficial “immediate cash flow”, given the costs of short-time working systems, starting with France. For the Commission, the initiative is only a first step and the economic crisis will make it more than necessary to introduce the European unemployment reinsurance instrument, initially planned for the end of the year (see EUROPE 12428/1).
Leïla Chaibi (GUE/NGL, France) agreed that the instrument seemed to “go in the direction of more solidarity rather than the logic of every man for himself, which has unfortunately prevailed so far”. “However, questions remain unanswered, especially about the sustainability of the system after the crisis and the fact that it will be loans and not subsidies”, she told us, before asking about the treatment of workers on digital platforms, which is unclear to say the least.
Similarly, Spanish Socialist Ernest Urtasun (Greens/EFA) regretted the very nature of the proposal: “it is useful, but absolutely insufficient [...], it is not at all the European unemployment reinsurance system that had been proposed, as these are loans that will have to be repaid”.
The legal basis chosen by the European Commission (Article 122 of the TFEU) is “completely intergovernmental”, according to the Green MEP, which would exclude the European Parliament. Mr Urtasun is particularly concerned about the veto power conferred by the proposal, as the instrument will only be operational once the guarantees of the 27 Member States have been agreed.
The social partners in the expectation
SMEunited welcomed the European Commission’s initiative, which will be beneficial for microenterprises and the self-employed, and will help to “stabilise” the economic situation during the crisis and recovery. SMEunited recalls that around 90% of European SMEs are currently affected and many of them have lost up to 100% of their turnover. Similarly, the European Trade Union Confederation (ETUC) welcomed the proposal and urged the Eurogroup and the EU Council to approve the instrument. For trade unions, as well as MEPs, this measure should not overshadow the permanent instrument that the Commission intends to propose at the end of 2020.
The Member States debated the European Commission's new proposals for the first time at the end of the day on Friday 3 April in the Committee of Permanent Representatives II (Coreper II). For their part, the coordinators of the Employment and Social Affairs Committee (EMPL) will meet on Wednesday 8 April in the early afternoon to take stock of the situation. (Original version in French by Pascal Hansens)