To buffer the impact the outbreak of the virus has on people´s livelihoods and the economy, the EC has adopted a comprehensive economic response to the pandemic. Full flexibility of the EU fiscal rules have been applied, State Aid rules have been revised, and a €37 billion Coronavirus Response Investment Initiative has been set, all so that liquidity can be provided to the health care sector and small businesses. 

Furthermore, the European Commission has proposed extensive measures to ensure the mobilization of every euro of the EU budget for the protection of lives and livelihoods of EU citizens. Therefore, on the 2nd of April 2020 the Commission has launched an initiative with the name “Support mitigating Unemployment Risks in Emergency” (short SURE), which was designed with the goal of protecting jobs and workers affected by the outbreak of the coronavirus. Also, a “Solidarity for Health Initiative” with a worth of €3billion was brought to life with the aim of catering for the needs of EU Member States´ health system. In addition, the redirection of all available structural funds to respond to COVID-19 was proposed. Small industries like farming and fishing and the most deprived of aid will also receive further support. 

• The SURE initiative as an instrument to mitigate unemployment risks

As mentioned before, the SURE initiative was designed to protect jobs and workers in order to support the livelihoods and economy of the EU citizens. The SURE initiative will provide financial assistance of up to €100 billion in total to Member States in the form of loans granted on favourable terms. These loans aim at helping to cover the costs of national short-time work schemes implemented by the EU Member States, which are public programmes that allow firms to reduce the working hours of their employees while providing income support. Therewith, short-time work schemes help to sustain families´ incomes while preserving the productive capacity and human capital of enterprises and the overall economy. 

The benefits of the SURE initiative are : 

1.  Targeted at protecting people´s jobs 
2. Temporary finacial support 
3. Fast deployment 
4. Complements national efforts 
5. Solidarity between Member States 

• More detailed information on how SURE will work 

The economic impact of COVID-19 varies across different industries and firms. It depends on a number of factors, such as the exposure to China as source of intermediate inputs, the possibility to shift to alternative suppliers, or the existence of inventories or reliance on just-in-time production progresses as it is the case in some businesses.

In order to monitor and evaluate the impact of COVID-19 on the European industries and trade, the EC is in close contact with national authorities, industry representatives and other stakeholders. With all possible means, the EC acts to support the different industry sectors, most of all those that are vital for the production and the supply of food. 

SURE was designed with the goal of protecting jobs and workers affected by the outbreak of the coronavirus

Funding is available for all types of companies – small and medium, as well as larger businesses – of the EU Member States. A wide range of financing is available, such as business loans, microfinance, guarantees and venture capital. The European Union provides financial support for more than 200,000 businesses every year; the EC can help to locate financial institutions that can give financial support.