The European Commission has announced plans to set up an investment initiative in the amount of €37 billion to deal with the spread of coronavirus (Covid-19).
Under the proposal, the commission will relinquish this year it’s obligation to request member states to refund unspent pre-financing for the structural funds.
This would amount to around €8 billion from the EU budget, which members states could use to supplement €29 billion of structural funding across the EU.
The commission is calling on the European Parliament and the European Council to swiftly approve this proposal, so that it can be adopted within the next two weeks.
Furthermore, the commission is proposing to “extend the scope” of the EU Solidarity Fund by including a ‘public health crisis’ within its scope.
The fund will be mobilised if needed for the hardest hit member states. Up to €800 million is available in 2020.
“We need to protect workers from unemployment and loss of income to avoid permanent effect,” a commission statement said.
A legislative proposal for a European Unemployment Reinsurance Scheme will also be accelerated.
Other measures will be undertaken to allow member states to act “decisively in a coordinated” way, through using the “full flexibility” of state aid rules.
The coronavirus pandemic is testing us all. This is not only an unprecedented challenge for our healthcare systems, but also a major shock for out economies.
“We stand ready to do more as the situation evolves. We will do whatever is necessary to support the Europeans and the European economy,” commented European Commission president Ursula von der Leyen.