Ireland granted EU loans to cover the wages scheme
IRELAND received € 2.47 billion in emergency Covid-19 loans from the EU to cover last year’s wage subsidy program.
This is the first time that the government has used the European Commission fund for “support to mitigate the risks of unemployment in emergencies” (or SURE).
The aid was part of a larger disbursement of € 13 billion on Tuesday, with the balance going to Spain (€ 4.06 billion), Belgium (€ 2.2 billion), the Italy (1.87 billion euros), Poland (1.4 billion euros) and the Czech Republic (1 billion euros). ).
Commission President Ursula von der Leyen said the money “helps protect jobs and allows economies to recover from the crisis more quickly”.
The SURE fund covers “sudden increases in public spending to preserve jobs” such as partial unemployment schemes.
“This is a welcome development, which supports jobs and workers and demonstrates the benefits of acting together in times of crisis,” said Finance Mi. Mr. Paschal Donohoe . “The goal now is to make sure we start a strong recovery. “
The G the government requested the loan last October to cover the Temporary Wage Subsidy Scheme (TWSS) – the forerunner of the Wage Subsidy for Employment (EWSS) program – which took place from March to August 2020.
The total cost is estimated at more than 2.7 billion euros.
“As the effects of the pandemic continue to weigh on our economies, the Commission is today providing significant new financial support to six countries, including Ireland for the first time,” said the chief economy officer of the Commission, Paolo Gentiloni.
“This is a crucial contribution to national efforts to support workers in these difficult times. I am proud of the European success which is SURE.
Money was raised in the financial markets last week as the European Commission issued a five-year bond, which drew a negative yield of -0.488pc, and a 25-year bond priced at + 0.476pc.
The money will have to be repaid to the EU, but Ireland will benefit from favorable borrowing terms from the Commission.
The Commission launched its SURE funding program last October, with two ‘ social bonds for an amount of 17 billion euros.
This is the highest amount of debt ever issued in euros by a sovereign.