The Government authorizes the national guarantees required for the implementation of the European Unemployment Support Mechanism (SURE).

25/05/2020
Photo Ministry of Economy, Industry and Competitiveness
  • This mechanism, one of the three short-term financial support mechanisms agreed by the EU, will be financed by Community debt covered by national guarantees of the 27 Member States. Once implemented, the grants will allow Member States applying for them to finance unemployment protection schemes, such as ERTE, in order to protect workers and reduce the economic and social impact of COVID-19.
  • The Council of Ministers has also agreed to make the processing of moratoria agreed by associations of financial institutions more flexible, which will allow significant relief for a large group of households and companies.
  • This initiative is in line with the recommendations promoted by the European Banking Authority (EBA) to limit the economic impact caused by the pandemic.
  • The term of the banking foundations is also extended to provide their reserve fund in the face of the limitation of dividends .
    • The Council of Ministers has authorized the granting of the necessary guarantees for the participation of Spain in the European Temporary Support Instrument to Mitigate the Risks of Unemployment in an Emergency created by the European Commission, known as SURE.

    May 26, 2020. The Council of Ministers has authorized the granting of the necessary guarantees for the participation of Spain in the European Temporary Support Instrument to Mitigate the Risks of Unemployment in an Emergency created by the European Commission, known as SURE.

    This instrument is part of the set of measures and programmes approved by the European Union to support the business fabric and the financing of the Member States, and complements the national measures implemented to mitigate the economic and social effects of COVID-19

    The SURE funds temporary employment support schemes such as the Temporary Employment Regulation Files and aims to protect workers and reduce the impact of unemployment and income losses.

    Member States contribute to the instrument by guaranteeing part of the risk assumed by the European Union through the granting of guarantees.

    This authorization is included in the Royal Decree-Law that adopts complementary measures in agricultural, scientific, economic, employment and Social Security and tax matters to alleviate the effects of COVID-19.

    Moratoria

    The approved regulation also includes measures to expedite the granting of moratoria agreed by associations of mortgage and non-mortgage loan financial institutions. The requirements are foreseen so that the sectoral moratoria, established by the financial institutions through their representative associations (AEB, ECSC, ASNEF or ACARC) and offered to their clients, enjoy a smooth processing, guaranteeing the protection of the debtor.

    In addition, it is clarified that leasing contracts, a form of contract that is very common among self-employed workers, may also be subject to postponement of quotas.

    This makes it easier for more people to benefit from the financial relief of deferring their loan contributions in the context of the health emergency.

    This measure is in line with the recommendations made by the European Banking Authority (EBA) to promote initiatives aimed at limiting the economic impact caused by the pandemic and, in particular, the extension of postponements and moratoria based on agreements promoted by associations of entities in each Member State.

    In addition, following the recommendation made by the European Central Bank to financial institutions to limit the distribution of dividends corresponding to the years 2019 and 2020, the Royal Decree-Law suspends the obligation of banking foundations with controlling participation in a credit institution to provide, in this year 2020, the reserve fund. Consequently, the outstanding appropriations are postponed to the period 2021-2024, extending the established period by one year.

    Finally, the Royal Decree-Law establishes that the president of the FROB will continue in his position until the appointment of his substitute.