ROME – The European Commission is reportedly working on an 80-100 billion euro plan to help Member States preserve jobs in the coronavirus crisis through a European unemployment “reinsurance” scheme. This is learned from several EU sources.

The aim would be to create a system at European level that allows financing instruments such as the German Kurzarbeit or the Italian redundancy fund, through public support for workers so as to avoid layoffs by companies as much as possible. The Commission could therefore ask to activate Article 122 paragraph 2 of the Treaty, according to which a Member State can receive financial assistance from the EU if it “finds itself in difficulty or is seriously threatened by serious difficulties due to natural disasters. or exceptional circumstances beyond its control. ”

Article 122 paragraph 2 of the Treaty would make it possible to use the resources of the EU budget – including the possibility for the Commission to issue securities – without resorting to other financial institutions or instruments such as the Mes or the Coronabonds. The EU would provide loans to individual countries to help them finance instruments such as the Kurzarbeit in Germany or the redundancy fund in Italy in the short term. In countries where these tools are not present in the legislation, resources could go to finance unemployment benefits.

The Commission’s proposal is expected to be presented before the Eurogroup on 7 April, during which euro area finance ministers are called on to discuss the different options on the table to respond to the economic impact of the Coronavirus crisis. The idea of ​​a European “reinsurance” scheme against unemployment – according to reports – would have received the consent of the two parties of the great coalition in Germany.