Spain will receive an additional 2.9 billion euros from the European Union Sure fund. In total, Spain has now been allocated €21.3billion from the EU. This is to protect employment in Spain against the negative effects of the corona pandemic.
European Commission Chairman Ursula von der Leyen announced this additional allocation to Spain on Twitter on Tuesday. Sure (Support to mitigate Unemployment Risks in an Emergency) is a temporary scheme. It allows EU Member States to apply for financial support for job retention and protection of the labour force. Spanish newspaper El Diario writes, unlike part of the amount from the European emergency fund, this is not a gift. It is a loan, but on favourable terms.
European Union lends €100billion to EU countries
The European Union has budgeted the fund at €100billion to provide loans to EU countries that need it. On Tuesday, Spanish news site RTVE wrote that the money borrowed from this fund must be repaid in June 2036. To date, the EU has allocated just over €90billion to 19 different EU countries.
Until Von der Leyen’s announcement, Spain had received €13.9billion. The first payment to Spain took place on October 20, 2020. Then on Tuesday, March 16, Spain received this additional €2.9billion. Therefore, with this additional allocation a total of more than €21.3billion is intended for Spain. Furthermore, with this amount, Spain ranks second among countries with the highest support from the Sure fund. Only Italy rises above Spain with an allocation of €27.4billion.
What is Spain going to use this money for?
In Spain, the money will be used to continue to pay for ERTE schemes and to protect workers against dismissal. The Spanish government can also use this money to support the tourism sector in times of pandemic.