Proposal for a COUNCIL REGULATION on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak
Date: 2020-04-02
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU aid, EU financial instrument, economic consequence, emergency aid, epidemic, fight against unemployment, infectious disease, self-employed person, social impact, unemployment

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   EUROPEAN COMMISSION  Brussels, 2.4.2020  COM(2020) 139 final 2020/0057 (NLE)  Proposal for a COUNCIL REGULATION on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak   
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Since the first cases of COVID-19 contagion, the European Union has been working tirelessly 
to  support  Member  States  and  their  citizens  in  addressing  the  crisis.  The  Commission  has 
activated  its  general  rapid  alert  system  “ARGUS”  for  crisis  coordination  and  the  Crisis 
Coordination  Committee  meets  regularly  to  coordinate  the  actions  of  all  the  relevant 
departments  and  services  of  the  Commission  and  of  the  EU  agencies.  The  Commission  has 
also  established  a  coordinating  response  team  at  political  level,  composed  of  the  five 
Commissioners  responsible  for  the  most  affected  policies.  Following  the  EU  leaders' 
videoconferences on the response to the COVID-19 outbreak on 10, 17, and 26 March 2020, 
the Commission is further stepping up its response to the COVID-19 outbreak, on all fronts. 
In this respect, the Commission has published a Communication to the European Parliament, 
the  European  Council,  the  Council,  the  European  Central  Bank,  the  European  Investment 
Bank and the Eurogroup for a “coordinated economic response to  the COVID-19 outbreak” 
on  13  March  2020.  In  the  economic  sphere,  the  Commission  proposed  the    Coronavirus 
Response Investment  Initiative (CRII) to flexibly  use the EU Structural Funds to respond to 
the rapidly emerging needs in the most exposed sectors, such as healthcare, SMEs and labour 
markets,  and  help  the  most  affected  territories  in  Member  States  and  their  citizens.  This 
proposal was meanwhile adopted and entered into force on 30 March. The Commission has 
also  adopted a Temporary  Framework for State aid  to  enable Member States to  use the full 
flexibility  foreseen  under  State  aid  rules  to  support  their  economies.  Moreover,  the 
Commission has also called on the Council to ensure that the Union institutions  activate the 
general  escape  clause  under  the  Stability  and  Growth  Pact,  and  the  Union  institutions  will 
apply that clause as part of the strategy of the Union to respond quickly, forcefully and in a 
coordinated fiscal manner to the COVID-19 pandemic. 

The  crisis  we  face  because  of  the  COVID-19  pandemic  has  a  very  significant  human 
dimension,  as  well  as  a  major  negative  socio-economic  impact.  It  is  therefore  essential  that 
the  Union  and  its  Member  States  act  decisively  and  collectively,  in  a  spirit  of  solidarity  to 
contain  the  spread  of  the  virus  and  to  help  patients,  to  counter  the  economic  fallout  and  to 
mitigate  the  negative  social  impacts.  As  part  of  that  joint  coordinated  response,  the 
Commission proposal to extend the scope of the EU Solidarity Fund (EUSF) to include major 
public  health  emergencies  and  to  define  specific  operations  eligible  for  financing  was  also 
adopted  enhancing  Union  solidarity  to  Member  States  in  dealing  with  the  emergency 
situation.  

As  announced  in  the  Communication  of  13  March  2020,  the  Union  also  stands  ready  to 
support Member States  where possible in  alleviating the employment impact for individuals 
and  the  hardest  hit  sectors.  The  new  instrument  for  temporary  Support  to  mitigate 
Unemployment  Risks  in  an  Emergency  (SURE)  proposed  to  the  Council  is  an  additional 
temporary  instrument  to  allow  for  Union  financial  assistance  up  to  EUR  100  billion  in  the 
form of loans from the Union to affected Member States. The contingent liability arising from 
those  loans  from  the  Union  will  be  made  compatible  with  the  EU  budget  constraints  with 
guarantees from Member States to the Union budget, representing 25% of the loans granted 
provided  by  each  Member  State  in  line  with  their  respective  share  in  total  Gross  National 
Income  of  the  Union.  SURE  will  be  an  additional  financial  assistance,  coming  on  top  of 
national measures and further to the regular grant support provided for similar purposes under 
the European Social Fund.  

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The SURE instrument should be available to Member States that need to mobilise significant 
financial  means  to  fight  the  negative  economic  and  social  consequences  of  the  COVID-19 
outbreak  on  their  territory.  The  establishment  of  SURE  is  a  further  tangible  expression  of 
Union solidarity, whereby the Member States agree to support each other through the Union 
by making additional financial resources available through loans. The SURE instrument will 
provide  financial  assistance  to  Member  States  to  address  sudden  increases  in  public 
expenditure for the preservation of employment. Specifically, the SURE instrument will act as 
a second line of defence, supporting short-time work schemes and similar measures, to help 
Member  States  protect  jobs  and  thus  employees  and  self-employed  against  the  risk  of 
unemployment  and  loss  of  income.  Short-time  work  schemes  are  public  programmes  that 
allow firms experiencing economic difficulties to temporarily reduce the hours worked while 
providing  their  employees  with  income  support  from  the  State  for  the  hours  not  worked. 
Similar schemes exist for income replacement to the self-employed in emergency situations. 
Conditions to determine when a Member State can benefit from support under this instrument 
should be established by reference to the sudden severe increase in  actual and possibly also 
planned  public  expenditure,  for  the  preservation  of  employment,  caused  by  the  COVID-19 
outbreak and be directly related to the creation or extension of short time work schemes and 
other similar measures taken in response to it. 

SURE will take the form  of a lending scheme  underpinned by  a system  of  guarantees  from 
Member States. This system will allow the Union to: 

(1) 

(2) 

expand  the  volume  of loans  that  can  be  provided  by  the  SURE  instrument  to 
Member States requesting financial assistance under the instrument; 

ensure that the contingent liability for the Union arising from the instrument is 
compatible with the Union budget constraints. 

For  the  approach  to  serve  the  intended  purpose,  Member  States  must  provide  credible, 
irrevocable and callable guarantees to the Union in line with the respective shares in the total 
Gross  National  Income  of  the  Union.  The  system  of  guarantees  will  avoid  the  need  for  up-
front cash contributions from Member States while providing the credit enhancement required 
to ensure a high credit rating and protect the resources of the Union budget.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States, whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

• 

Consistency with existing policy provisions in the policy area 

The present proposal comes in addition to another Union law instrument to provide support to 
Member States in case of emergencies, namely Council Regulation (EC) No 2012/2002 of 11 
November 2002 establishing the European Union Solidarity Fund (EUSF) (“Regulation (EC) 
No 2012/2002”). Regulation (EU) 2020/461 of the European Parliament and of the Council, 
which amends that instrument to  extend its scope to  cover major public  health emergencies 
and to define specific operations eligible for financing, was adopted on 30 March.   

 Whereas, the EUSF is a permanent instrument, SURE would be of a temporary nature. The 
geographical scope is also different because SURE is limited to Member States and does not 

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extend to  countries  negotiating their accession to the  Union. The thematic scope  of  the two 
instruments,  however,  is  consistent  –  addressing  major  crises  resulting  from  public  health 
threats,  where  the  EUSF  can  be  used  on  a  permanent  basis  while  the  SURE  instrument  is 
confined  to  the  particular  case  of  the  COVID-19  outbreak.  Another  difference  is  that  the 
EUSF is grant-based and allows for advance payments. The SURE instrument is loan-based. 

Mobilisation of Union financial assistance under the SURE instrument would be possible on a 
proposal  by  the  Commission  to  the  Council.  The  Member  State  concerned  should  request 
support.  Before  the  Council  grants  financial  assistance  under  the  SURE  instrument,  the 
Commission  should  consult  with  the  Member  State  concerned  to  assess  the  extent  of  the 
(realised or expected) sudden severe increase in public expenditure in the field of protection 
of employment. The Member State should provide evidence of this sudden severe increase in 
actual and possibly also  planned expenditure when requesting support. The Council adopts an 
implementing decision approving the financial assistance, acting by qualified majority, if the 
conditions of this instrument are fulfilled. The Commission and the beneficiary Member State 
will conclude an implementation agreement. Relevant operations when examining the sudden 
increased expenditure remain limited to public emergency operations in the field of protection 
of  employment  caused  by  the  COVID-19  outbreak.  The  resulting  loans  will  help  Member 
States  to  finance  their  increased  public  expenditure  in  the  field  of  short-time  work  schemes 
and similar measures, to help them protect jobs and thus employees and self-employed against 
the risk of unemployment.  

• 

Consistency with other Union policies 

The proposal is part of a range of measures developed in response to the current COVID-19 
pandemic  such  as  the  “Coronavirus  Response  Investment  Initiative”,  and  it  complements 
other  instruments  that  support  employment  such  as  the  European  Social  Fund  and  the 
European Fund for Strategic Investments (EFSI)/InvestEU. It builds on a technique used for 
the  European  Financial  Stabilisation  Mechanism  (EFSM)  in  the  past  financial  crisis  by  the 
Union  to  provide  on  short  notice  financial  assistance  from  the  Union  to  Member  States 
confronted  with  difficulties,  or  threatened  by  difficulties  caused  by  an  exceptional  event 
beyond  the  Member  State’s  control,  and  on  the  new  framework  to  manage  contingent 
liabilities  foreseen  in  the  Financial  Regulation  of  2018.    By  making  use  of  borrowing  and 
lending in this particular case of the COVID-19 outbreak for supporting Member States, this 
specific instrument could in particular be used by Member States as a second line of defence 
to  finance  short-time  work  schemes  and  similar  measures,  helping  protect  jobs  and  thus 
employees and self-employed against the risk of unemployment.  

This temporary instrument should be seen as an emergency operationalisation of a European 
Unemployment Reinsurance Scheme in the specific context of the COVID-19 crisis, without 
prejudice  to  the  possible  subsequent  establishment  of  a  permanent  instrument  under  a 
different legal basis in the TFEU. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  this  instrument  is  Article  122  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU). It is based on both paragraph (1) and paragraph (2) of Article 122 
TFEU.  

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The COVID-19 outbreak is a sudden and exceptional event entailing a massive and disruptive 
impact on the Member States’ economic systems calling for collective responses in a spirit of 
solidarity.  The  construction  of  the  guarantee  system  based  on  voluntary  contributions  from 
Member States to the Union to underpin the financial assistance under the SURE instrument 
is  based  on  Article  122(1)  TFEU.  This  intervention  would  reflect  in  a  spirit  of  solidarity  a 
response  by  Member  States  with  measures  appropriate  to  the  unprecedented  economic 
situation, which the COVID-19 outbreak causes. It is therefore justified to base the guarantee 
scheme supporting the SURE instrument on Article 122(1) TFEU. 

The  organisation  and  management  of  the  loan  scheme  is  based  on  Article  122(2)  TFEU, 
which  allows  the  Council  to  provide  on  a  temporary  and  ad  hoc  basis  Union  financial 
assistance, on a proposal from the Commission, to a Member State in difficulties or seriously 
threatened  with  severe  difficulties  caused  by  natural  disasters  or  exceptional  occurrences 
beyond its control  subject  to  certain  conditions.  This  legal  base would underpin the lending 
component of the SURE instrument.  

Article 122(2) TFEU has been used once before. During the financial crisis, it served as the 
legal basis for the establishment of a temporary European Financial Stabilisation Mechanism 
(EFSM)  to  help  Member  States  that  lost  market  access  in  full  or  in  part  due  to  severe 
deteriorating  borrowing  costs.  The  Union  used  that  instrument  to  provide  loans  to  Ireland, 
Portugal and a bridge-finance for Greece.  

Article 122(2) TFEU can be used for any type of exceptional crisis event and is not confined 
to crises of a financial or financial stability nature only. The Council has a broad margin of 
discretion  for  assessing  whether  the  conditions  of  this  legal  basis  are  fulfilled.  This  is 
manifestly  the  case  for  Member  States  that  are  most  affected  by  the  major  public  threat  to 
health posed by the COVID-19 outbreak as well as by its economic and social consequences. 

• 

Subsidiarity (for non-exclusive competence)  

The proposal aims to support Member States confronted with a severe economic disturbance 
due to the exceptional event of the COVID-19 outbreak in order to show European solidarity 
with those Member States that are heavily affected, by providing Union financial assistance in 
the form of temporary loans. As a second line of defence, such financial assistance supports 
their governments’ increased public expenditure on a temporary basis in respect of short-time 
work schemes and similar measures to  help  them protect  jobs  and thus employees  and self-
employed against the risk of unemployment and loss of income. 

Such support would help the population affected, contributes to a rapid return to normal living 
conditions  in  the  affected  regions  and  mitigates  the  direct  societal  and  economic  impact 
caused by the present COVID-19 crisis.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument.  

• 

Choice of the instrument 

This act takes the form of a Regulation because the act creates a new specific and temporary 
instrument that could be used by any Member State and has to be binding in its entirety and 
directly  applicable  in  all  Member  States.  A  Council  Regulation  for  establishing  financial 
assistance  to  Member  States  under  Article  122(2)  TFEU  has  been  used  in  the  past  in  the 

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context of the financial crisis to establish procedures and practices to prepare and assess the 
requests of relevant Member States, and to implement such financial assistance in a rapid and 
effective manner. It ensures that subsequent implementing decisions by the Council to provide 
financial  assistance  to  Member  States  take  place  under  an  appropriate  and  consistent 
framework. A Regulation applicable to all Member States is also the most appropriate legal 
instrument  to  organise  the  guarantee  scheme  underpinning  the  lending  under  the  SURE 
instrument in view of the fact it is based on voluntary contributions by all Member States.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out. 

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  with  the 
purpose  of  on-lending  them  to  the  Member  State  requesting  financial  assistance  under  the 
SURE instrument.  

SURE will take the form of a lending scheme up to EUR 100 billion underpinned by a system 
of guarantees from Member States. This system will allow the Union to: 

(1) 

(2) 

expand the volume of loans that can be provided by the SURE instrument to Member 
States requesting financial assistance under the instrument; 

ensure  that  the  contingent  liability  for  the  Union  arising  from  the  Instrument  is 
compatible with the Union budget constraints. 

For  the  approach  to  serve  the  intended  purpose,  Member  States  must  provide  credible, 
irrevocable and callable guarantees to the Union, in line with their respective share in the total 
Gross  National  Income  of  the  Union.  The  system  of  guarantees  will  avoid  the  need  for  up-
front  cash  contributions  (paid-in  capital)  from  Member  States  while  providing  the  credit 
enhancement required to ensure a high credit rating and protect the resources of the Union.  

In  addition  to  the  provision  of  Member  State  guarantees,  other  safeguards  are  built  into  the 
framework in order to ensure the financial solidity of the scheme: 

 

 

A rigorous and conservative approach to financial management; 

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure and excessive exposure to individual Member States whilst ensuring 
sufficient resources could be granted to Member States most in need; and 

 

Possibilities to roll over debt. 

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5. 

• 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

Article 1 of the proposed Council Regulation provides for the establishment of the European 
Instrument  for  temporary  Support  to  mitigate  Unemployment  Risks  in  an  Emergency 
following the COVID-19 outbreak (SURE). This instrument would be ad hoc and temporary 
in  view  of  its  legal  basis.  It  would  provide  financial  assistance  under  Article  220  of  the 
Financial  Regulation  in  support  of  Member  States  confronted  with  a  severe  economic 
disturbance caused by the exceptional occurrence of the COVID-19 outbreak.   

Article  2  of  the  proposed  Regulation  stresses  the  complementary  nature  of  the  SURE 
instrument. It should complement efforts undertaken by Member States at national level and 
covers  part  of  the  severe  and  sudden  increase  in  public  expenditure  they  face  as  a  result  of 
their efforts to address the direct negative consequences of the COVID-19 crisis. The use of 
the  SURE  instrument  does  not  prevent  the  application  of  other  relevant  EU-instruments 
dealing  with  specific  aspects  of  major  threats  to  public  health  and  financial  support 
instrument, like for instance the EUSF.  

Article 3 of the proposed Regulation lays down the conditions  for activating the instrument. 
Member  States  may  request  financial  assistance  where  their  actual  and  possibly  planned 
public  expenditure  has  suddenly  and  severely  increased  in  the  field  of  employment  due  to 
national responses to the COVID-19 outbreak. Support under the SURE instrument should in 
particular  support  the  increased  financial  burden  of  Member  States  for  short-time  work 
schemes  and similar measures that  help protect jobs  and thus employees  and self-employed 
against the risks of unemployment and loss of income. 

Article  4  of  the  proposed  Regulation  determines  firstly  that  financial  assistance  under  the 
proposed  SURE  instrument  will  take  the  form  of  a  loan  granted  to  the  Member  State 
concerned.  Secondly,  it  provides  for  the  empowerment  of  the  Commission  to  be  able  to 
contract  borrowings  on  the  financial  markets  with  the  purpose  of  on-lending  them  to  the 
Member State concerned.  

Article  5  of  the  proposed  Regulation  establishes  the  maximum  amount  of  Union  financial 
assistance that can be provided under the SURE instrument.  It  concerns an amount of up to 
EUR 100 billion.  

Article 6 of the proposed Regulation establishes  the procedure for granting swiftly financial 
assistance to Member States. Following a request by a Member State, the Commission would 
consult the Member State concerned to verify the extent of the increase in public expenditure 
that  is  directly  related  to  the  creation  or  extension  of  short-time  work  schemes  and  similar 
measures  notably  for  self-employed.  Such  a  consultation  also  helps  the  Commission  to 
properly evaluate the terms of the loan. Elements such as the amount, the maximum average 
maturity,  pricing,  availability  period  of  support  and 
technical  modalities  for 
implementation should be determined. 

the 

Articles 7 to 10 of the proposed Regulation contain the procedural rules for the disbursement 
and implementation of the loan support under the SURE instrument. More specifically, they 
deal  with  rules  on  the  disbursement,  the  borrowing  and  lending  operations,  the  prudential 
rules applicable to the portfolio of loans under the instrument, and the administration of the 
loans.  

Article  11  of  the  proposed  Regulation  deals  with  the  funding  mechanism  of  the  instrument. 
The  lending  to  Member  States  under  the  instrument  will  be  underpinned  by  a  system  of 
guarantees  from  Member  States  committed  to  the  Union  on  a  voluntary  basis.  This  system 

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will  allow  the  Union  to  expand  the  volume  of  financial  assistance  by  means  of  loans  that 
could be provided to Member States under the SURE instrument. The guarantees committed 
to  the  Union  should  be  irrevocable,  unconditional  and  on  demand  and  laid  down  in  an 
agreement  concluded  between  the  Commission  and  the  Member  States.  Such  contributions 
would constitute external assigned revenue. 

Article 12 of the proposed Regulation sets a rule regarding the availability of the instrument. 
Union  financial  assistance  under  the  SURE  instrument  will  only  be  available  as  from  the 
moment that all Member States have committed their guarantees to the Union.  

Articles  13  and  14  of  the  proposed  Regulation  lay  down  rules  on  controls  and  audits  and 
reporting.  

Finally, Article 15 of the proposed Regulation makes clear that the instrument will not apply 
to the United Kingdom since under Article 143(1) of the Agreement on the withdrawal of the 
United  Kingdom  of  Great  Britain  and  Northern  Ireland  from  the  European  Union  and  the 
European Atomic Energy Community1, the liability of the United Kingdom for its share of the 
contingent  liabilities  of  the  Union  is  limited  to  those  contingent  liabilities  which  arise  from 
financial  operations  taken  by  the  Union  before  the  date  of  the  withdrawal  of  the  United 
Kingdom  from  the  Union.  Any  contingent  liability  of  the  Union  arising  from  financial 
assistance  under  this  Regulation  would  be  subsequent  to  the  date  of  the  withdrawal  of  the 
United Kingdom from the Union. Therefore, the United Kingdom should not participate in the 
financial assistance under this Regulation.  

1 

OJ C 384 I, 12.11.2019, p. 1. 

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2020/0057 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on the establishment of a European instrument for temporary support to mitigate 
unemployment risks in an emergency (SURE) following the COVID-19 outbreak 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 122 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

Article  122(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union  (‘TFEU’) 
allows  the  Council  to  decide,  on  a  proposal  from  the  Commission  and  in  a  spirit  of 
solidarity between Member States, upon measures appropriate to respond to the socio-
economic situation following the COVID-19 outbreak.  

Article  122(2)  TFEU  enables  the  Council  to  grant  Union  financial  assistance  to  a 
Member State  that is  in  difficulties or  is  seriously  threatened with  severe difficulties 
caused by exceptional occurrences beyond its control. 

The  Severe  Acute  Respiratory  Syndrome  coronavirus-2  (SARS-CoV-2),  causing  the 
coronavirus disease, named COVID-19 by the World Health Organisation (WHO), is a 
new strain of coronavirus not previously identified in humans. The global outbreak of 
that  disease  is  evolving  rapidly  and  it  has  been  declared  a  pandemic  by  the  WHO. 
From  the  beginning  of  the  outbreak  in  the  Union  up  until  30  March  2020,  334  396 
cases and 22 209 deaths have been reported in the Member States. 

(4)  Member  States  have  implemented  extraordinary  measures  to  contain  the  COVID-19 
outbreak and its impact.  The probability of further transmission  of COVID-19 in the 
Union  is  considered  high.  In  addition  to  public  health  impacts  with  substantial  fatal 
outcomes, COVID-19 outbreaks have caused  a massive and disruptive impact on the 
Member  States’  economic  systems,  have  caused  societal  disruptions  and  have 
increased public expenditure in a growing number of Member States. 

(5) 

(6) 

That  exceptional  situation,  which  is  beyond  the  control  of  the  Member  States  and 
which has immobilised a substantial part of their labour force, has led to a sudden and 
severe  increase  in  public  expenditure  of  the  Member  States  on  short  time  work 
schemes  for  employees  and  similar  measures  notably  for  the  self-employed.  It  is 
necessary to enable the Member States to address that  sudden and severe increase in 
public expenditure until the COVID-19 outbreak and its impact on their labour force is 
under control. 

The  creation  of  a  European 
to  mitigate 
instrument  for 
unemployment  risks  in  an  emergency  following  the  COVID-19  outbreak  (‘SURE’) 
should enable the Union to respond to the crisis in the labour market in a coordinated, 
rapid, and effective manner and in a spirit of solidarity among Member States, thereby 

temporary  support 

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(7) 

(8) 

(9) 

alleviating the impact on employment for individuals and the most affected economic 
sectors mitigating the direct effects of this exceptional situation on public expenditure 
of the Member States. 

According  to  Article 220  of  Regulation  (EU,  Euratom)  1046/2018  of  the  European 
Parliament  and  of  the  Council2,  financial  assistance  by  the  Union  to  Member  States 
can take the form of loans. Those loans should be accorded to Member States where 
the COVID-19 outbreak has led to a sudden and severe increase in actual and possibly 
also planned public expenditure due to national measures adopted as from 1 February 
2020. That date ensures equal treatment for all Member States and allows for coverage 
of their actual and possibly planned increases in spending relating to the effects on the 
labour  markets  of  the  Member  States,  irrespective  of  when  the  COVID-19  outbreak 
occurred in each specific Member State. The national measures adopted as from that 
date should be directly related to the creation or extension of short-time work schemes 
and  to  similar  measures  including  for  self-employed  persons.  Short-time  work 
schemes  are  public  programmes  that  under  certain  circumstances  allow  firms 
experiencing  economic  difficulties  to  temporarily  reduce  the  hours  worked  by  their 
employees, which are provided with public income support for the hours not worked. 
Similar  schemes  exist  for  income  replacement  for  the  self-employed.  The  Member 
State requesting financial assistance should provide evidence of the sudden and severe 
increase in actual and possibly also planned expenditure for short time work schemes 
or similar measures. 

In  order  to  provide  the  affected  Member  States  with  sufficient  financial  means  to 
enable them to deal with the impact of the COVID-19 outbreak on their labour market, 
the Union’s borrowing and lending activities under SURE should be sufficiently large. 
The  loans  issued  by  the  Union  should  therefore  be  financed  by  recourse  to 
international capital markets. 

The  COVID-19  outbreak  has  a  massive  and  disruptive  impact  on  the  economic 
systems  of  each  Member  State.  It  therefore  calls  for  collective  contributions  by 
Member States in the form of guarantees supporting the loans from the Union budget. 
Those guarantees are necessary to enable the Union to grant loans of a sufficient order 
of magnitude to Member States, to labour market policies which are under the greatest 
strain.  To ensure  that the  contingent  liability  arising from  those loans granted by the 
Union under SURE is compatible with the applicable multiannual financial framework 
and own resources ceilings, the guarantees provided by the Member States should be 
irrevocable, unconditional and on demand, while additional safeguards should enhance 
the robustness of the system. 

(10)  The additional safeguards to enhance the robustness of the system should consist of a 
conservative  financial  management,  a  maximum  annual  exposure,  and  a  sufficient 
diversification of the loan portfolio. 

(11)  The  loans  granted  under  this  instrument  constitute  financial  assistance  within  the 
meaning of Article 220 of Regulation (EU, Euratom) 1046/2018. In accordance with 
Article  282(3),  point  (g),  of  Regulation  (EU,  Euratom)  1046/2018,  Article  220  will 

2 

Regulation (EU, Euratom) 1046/2018 of the European Parliament and of the Council of 18 July 2018 on 
the  financial  rules  applicable  to  the  general  budget  of  the  Union,  amending  Regulations  (EU) 
No 1296/2013,  (EU)  No 1301/2013,  (EU)  No 1303/2013,  (EU)  No 1304/2013,  (EU)  No 1309/2013, 
(EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014 and repealing 
Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1). 

EN 

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apply  to  the  loans  granted  under  this  instrument  from  the  date  of  application  of  the 
post-2020  multiannual  financial  framework.  However,  it  is  appropriate  that  the 
requirements set out in Article 220(5) of Regulation (EU, Euratom) 1046/2018 apply 
to  the  borrowing  and  lending  operations  already  as  of  the  entry  into  force  of  this 
Regulation.  

(12) 

In order to make the contingent liability arising from loans granted by the Union under 
this  instrument  compatible  with  the  applicable  multiannual  financial  framework  and 
own  resources  ceilings,  it  is  necessary  to  lay  down  prudential  rules,  including  the 
possibility of rolling over the borrowings contracted on behalf of the Union. 

(13)  Given  their  particular  financial  implications,  the  decisions  to  grant  Union  financial 
assistance  pursuant  to  this  Regulation  require  the  exercise  of  implementing  powers, 
which should be conferred on the Council. 

(14)  Article 143(1) of the Agreement on the withdrawal  of the United Kingdom  of Great 
Britain  and  Northern  Ireland  from  the  European  Union  and  the  European  Atomic 
Energy  Community3  limits  the  liability  of  the  United  Kingdom  for  its  share  of  the 
contingent  liabilities  of  the  Union  to  those  contingent  liabilities  which  arise  from 
financial operations taken by the Union before the date of the withdrawal of the United 
Kingdom from the Union. Any contingent liability of the Union arising from financial 
assistance under this Regulation would be subsequent to the date of the withdrawal of 
the  United  Kingdom  from  the  Union.  Therefore,  the  United  Kingdom  should  not 
participate in the financial assistance under this Regulation. 

(15)  As  the  instrument  is  of  a  temporary  nature  addressing  the  COVID-19  outbreak,  the 
Commission  should  review  every  six  months  whether  the  exceptional  circumstances 
causing the severe economic disturbances in Member States still exist. 

(16)  Given the impact of the  COVID-19  outbreak and the need  for an urgent  response to 
the consequences of that outbreak, this Regulation should enter into force on the date 
of its publication in the Official Journal of the European Union, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Establishment of the European instrument for temporary support to mitigate 
unemployment risks in an emergency (‘the Instrument’) 

1.  The  European  instrument  for  temporary  support  to  mitigate  unemployment  risks  in  an 
emergency  (SURE),  hereinafter  “the  Instrument”,  to  address  the  impact  of  the  COVID-19 
outbreak and its socio-economic consequences, is hereby established. 

2.  This  Regulation  lays  down  the  conditions  and  procedures  enabling  the  Union  to  provide 
financial assistance to a Member State, which is experiencing, or is seriously threatened with, 
a severe economic disturbance caused by the COVID-19 outbreak for the financing of short-
time work or similar measures aimed to protect employees and self-employed and thus reduce 
the incidence of unemployment and loss of income.  

3 

OL L 29, 2020 1 31, p. 7. 

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10 

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Article 2 

Complementary nature of the Instrument 

The Instrument shall complement the national measures taken by affected Member States by 
providing financial assistance to help them cope with the sudden and severe increase in actual 
and  possibly  also  planned  public  expenditure  intended  to  mitigate  the  direct  economic  and 
negative social effects of the exceptional occurrence caused by the COVID-19 outbreak.  

Article 3 

Conditions for using the Instrument 

1.  A Member State  may  request  Union financial assistance  where its  actual and possibly 
also planned public expenditure has  suddenly  and  severely increased  as  of  1  February 2020 
due  to  the  adoption  of  national  measures  directly  related  to  short  time  work  schemes  and 
similar  measures  to  address  the  economic  and  social  effects  of  the  exceptional  occurrence 
caused by the COVID-19 outbreak.  

2. Beneficiary Member States shall use the Union financial assistance under this Instrument in 
support of national schemes supporting short-time work or similar measures.  

Article 4 

Form of financial assistance 

The  financial  assistance  referred  to  in  Article  3  shall  take  the  form  of  a  loan  granted  to  the 
Member  State  concerned.  To  that  end,  and  in  accordance  with  a  Council  implementing 
decision adopted pursuant to Article 6(1), the Commission shall be empowered to borrow on 
the  capital  markets  or  with  financial  institutions  on  behalf  of  the  Union  at  the  most 
appropriate  time  so  as  to  optimise  the  cost  of  funding  and  preserve  its  reputation  as  the 
Union's issuer in the markets. 

Article 5 

Maximum amount of financial assistance 

The maximum  amount of  financial  assistance  referred to  in  Article  3 shall not exceed EUR 
100 000 000 000 for all Member States. 

Article 6 

Procedure for requesting financial assistance 

1. 

2. 

The financial assistance referred to in Article 3 shall be made available by a decision 
adopted  by  the  Council  by  means  of  an  implementing  act,  on  a  proposal  from  the 
Commission. 

Before  submitting  a  proposal  to  the  Council,  the  Commission  shall  consult  the 
Member  State  concerned  without  undue  delay  to  verify  the  sudden  and  severe 
increase in actual and possibly also planned expenditure directly related to short time 
working  schemes  and  similar  measures  in  the  Member  State  requesting  support, 
which  are  linked  to  the exceptional  occurrence  caused  by  the  COVID-19  outbreak. 
To  that  end,  the  Member  State  concerned  shall  provide  the  Commission  with 

EN 

11 

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appropriate evidence.  In addition, the Commission shall verify the fulfilment of the 
prudential rules referred to in Article 9.  

3. 

The decision to make available the financial assistance referred to in Article 3 shall 
contain: 

(a) 

(b) 

(c) 

the amount of the loan, its maximum average maturity, its pricing formula, its 
maximum number of instalments, its availability period and the other detailed 
rules needed for the granting of the financial assistance; 

an  assessment  of  the  compliance  by  the  Member  State  with  the  conditions 
referred to in Article 3; 

a description of the national short-time scheme(s) or similar measures that may 
be financed. 

The loan referred to in Article 6(3) shall be disbursed in instalments. 

Article 7 
Disbursement of the loan 

Article 8 
Borrowing and lending operations 

The borrowing and lending operations referred to in Article 4 shall be carried out in 
euro. 

The characteristics of the loan referred to in Article 6(3), point (a), shall be agreed in 
a Loan Agreement between the beneficiary Member State and the Commission. That 
agreement  shall  contain  the  provisions  referred  to  in  Article  220(5)  of  Regulation 
(EU, Euratom) 1046/2018.  

At the request of the beneficiary Member State and where circumstances permit an 
improvement  in  the  interest  rate  on  the  loan,  the  Commission  may  refinance  all  or 
part of its initial borrowing or restructure the corresponding financial conditions. 

The Economic and Financial Committee shall be kept  informed of  a refinancing or 
restructuring as referred to in paragraph 3. 

Article 9 
Prudential rules applicable to the portfolio of loans 

The share of loans granted to the three Member States representing the largest share 
of loans granted shall not exceed 60% of the amount referred to in Article 5.  

The amounts due by the Union in a given year shall not exceed 10% of the amount 
referred to in Article 5.  

Where a Member State fails to make a repayment, the Commission may roll over the 
associated borrowings contracted on behalf of the Union. 

Article 10 
Administration of the loans 

The Commission shall establish the necessary arrangements for the administration of 
the loans with the ECB. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

1. 

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12 

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2. 

1. 

2. 

3. 

4. 

1. 

The beneficiary Member State shall open a special account with its  national central 
bank  for  the  management  of  the  financial  assistance  received.  It  shall  also  transfer 
the principal and the interest due under the loan to an account of the Union with the 
ECB twenty TARGET2 business days prior to the corresponding due date. 

Article 11 
Contributions in the form of guarantees from Member States 

Member  States  may  contribute  to  the  Instrument  by  counter-guaranteeing  the  risk 
borne by the Union.   

Contributions  from  Member  States  shall  be  provided  in  the  form  of  irrevocable, 
unconditional and on demand guarantees. 

The Commission shall conclude an agreement with a contributing Member State on 
the  irrevocable,  unconditional  and  on  demand  guarantees.  The  agreement  shall  set 
out the payment conditions. 

Calls on guarantees provided by Member States shall be made on a pari passu basis. 
Where a Member State fails to honour a call in time, the Commission shall have the 
right  to  make additional calls on guarantees provided by  other  Member States  on a 
pari  passu  basis  up  to  the  overall  contributed  amounts.  Member  States  shall  be 
reimbursed for such additional contributions from recovered amounts.  

Contributions  referred  to  in  paragraph  1  shall  constitute  external  assigned  revenue 
within the meaning of Article 21(5) of Regulation (EU, Euratom) 1046/2018 to this 
Instrument. 

Article 12 
Availability of the Instrument 

The financial assistance referred to in Article 3 shall only become available after all 
Member  States  have  contributed  to  the  Instrument  with  contributions  referred  to  in 
Article 11(1) for an amount representing at least 25 per cent of the amount referred to 
in Article 5, provided that the relative shares of contributions of each Member State 
of  the  overall  amount  of  Member  States  contributions  correspond  to  the  relative 
shares  of  Member  States  in  the  total  Gross  National  Income  of  the  Union,  as 
resulting from the column (1) of Table 3 of Part A “Introduction and financing of the 
general budget of the Union”, of the revenue part of the budget  for 2020 set out in 
the general budget of the European Union for the financial year 2020, as adopted on 
27 November 20194. 

2. 

The Commission shall inform the Council when the Instrument becomes available. 

Article 13 
Control and audits 

The  agreement  referred  to  in  Article  8(1)  shall  contain  the  necessary  provisions  regarding 
controls and audits as required by Article 220(5) of Regulation (EU, Euratom) 1046/2018. 

4 

Definitive adoption (EU, Euratom) 2020/227 of the European Union’s general budget for the financial 
year 2020, (OJ L 57, 27.02.2020. p.1). 

EN 

13 

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Article 14 
Reporting 

The  Commission  shall  forward  to  the  European  Parliament,  the  Economic  and  Financial 
Committee, the Employment Committee and to the Council, within six months following the 
entry into force of this Regulation and six months thereafter in the context of Article 250 of 
Regulation  (EU,  Euratom)  1046/2018,  a  report  on  the  use  of  financial  assistance  and 
continuation of the exceptional occurrences that justify the application of this Regulation. 

Article 15 
Applicability 

This Regulation shall not be applicable to and in the United Kingdom. References to Member 
States in this Regulation shall not be understood as including the United Kingdom. 

Article 16 
Entry into force 

This Regulation shall enter into force on the day of its publication in the  Official Journal of 
the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

EN 

15 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal for a Council Regulation on the establishment of a European Instrument for 
temporary  Support  to  mitigate  Unemployment  Risks  in  an  Emergency  (SURE) 
following the COVID-19 outbreak 
Policy area(s) concerned in the ABM/ABB structure5  

1.2. 

Not applicable  

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action6  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

Not applicable.  

The proposed Regulation is an emergency measure put forward by the Commission 
to the Council with a view to provide Union financial assistance to Member States in 
a  spirit  of  solidarity  in  order  to  help  them  protect  employment  through  support  to 
short  time  work  schemes  for  employees  and  similar  measures  for  self-employed 
following the COVID-19 outbreak. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective No 

Not applicable  

ABM/ABB activity(ies) concerned 

Not applicable  

5 
6 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

16 

  EN 

                                                 
1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  aim  of  the  proposed  SURE  instrument  is  to  lay  down  the  rules  enabling  the 
Union to provide financial assistance to a Member State, which is experiencing, or is 
seriously threatened with, a severe  economic  disturbance  caused by the  COVID-19 
crisis  for  the  financing  of  short-time  work  or  similar  measures  aimed  to  protect 
employees and self-employed and thus reduce the incidence of unemployment. 

Specifically,  the  SURE  instrument  will  act  as  a  second  line  of  defence,  supporting 
short-time work schemes and similar measures, to help Member States protect jobs 
and thus employees and self-employed against the risk of unemployment. Conditions 
to  determine  when  a  Member  State  can  benefit  from  support  under  this  instrument 
should  be  established  by  reference  to  the  sudden  severe  increase  in  actual  and 
possibly also planned public expenditure caused by the COVID-19 outbreak and be 
directly  related  to  the  creation  or  extension  of  short  time  work  schemes  and  other 
similar measures taken in response to it. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

Not applicable  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The proposed SURE instrument is based on Article 122 (1) and (2) TFEU.  

This legal basis prescribes that: 

- appropriate measures can be taken by the Union to respond in a spirit of solidarity 
between Member States to a specific economic situation.  

-    Union  financial  assistance  can  be  granted  when  a  Member  State  is  faced  with 
difficulties or threatened by difficulties caused by an exceptional occurrence beyond 
its control but subject to conditions.  

Currently,  Member  States  are  facing  a  severe  economic  disturbance  caused  by  the 
COVID-19 outbreak which has strong negative socio-economic impacts in Member 
States .  

1.5.2.  Added value of EU involvement 

The proposal aims to offer financial support  in a spirit of European solidarity with 
those Member States that are heavily affected. Such financial assistance supports on 
a  temporary  basis  Member  States’  increased  public  expenditure  as  is  by  means  of 
loans  lines  for  creating  or  extending  short-time  work  schemes  and  other  similar 
measures. It serves as a second-line of defence for Member States being faced with 
increased  public  expenditure  to  preserve  employment  of  employees  and  self-
employed.  Such  EU  support  helps  the  population  of  the  affected  Member  States, 
contributes to a rapid  return to normal living conditions  in the affected regions and 
mitigates the direct societal and economic impact caused by this particular COVID-
19 crisis. 

EN 

17 

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1.5.3.  Lessons learned from similar experiences in the past 

When the Union was confronted with a grave financial crisis a decade ago, the legal 
basis of Article 122 of the Treaty on the Functioning of the European Union (TFEU) 
has proven it is added value to mobilise at short notice financial assistance from the 
Union  to  Member  States  faced  with  difficulties  caused  by  an  exceptional  event 
beyond  their  control.  The  Union  adopted  on  this  legal  basis  Regulation  (EU)  No 
407/2010  of  the  Council  of  11  May  2010  establishing  a  European  Financial 
Stabilisation  Mechanism  (EFSM).  This  instrument  provided  Union  financial 
assistance to Portugal, Ireland and a bridge financing to Greece by means of back-to-
back-loans. The legal basis and the technique are however not confined to financial 
crisis events only but to any exceptional occurrence beyond Member States’ control 
and  could    therefore  also  be  used  in  this  particular  crisis  event  of  the  COVID-19 
outbreak.  

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

the  “Coronavirus  Response 
The  proposed  SURE 
Investment Initiative”, the proposed enlargement of the scope of the European Union 
Solidarity Fund, and other instruments so support employment such as the European 
Social Fund and Invest EU. 

instrument  complements 

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1.6. 

Duration and financial impact  

X Proposal/initiative of limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from YYYY to YYYY  

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned7  

X Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–    bodies  referred  to  in  Articles  208  and  209  of  Regulation  (EU,  Euratom) 

1046/2018; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

The proposed Regulation is based on Article 122 TFEU. Hence, it can only be of a temporary 
nature.  However,  it  is  in  current  exceptional  circumstances  of  the  COVID-19  outbreak 
impossible  to  tell  how  long  this  situation  lasts  and  for  how  long  it  will  generate  economic 
impact on working people in Member States.  

7 

Details of management modes and references to  Regulation (EU, Euratom) 1046/2018  may be  found 
on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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19 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  proposed  Regulation  provides  for  a  reporting  clause  (Article  14).  The 
Commission  should  forward  to  the  Economic  and  Financial  Committee,  the 
Employment Committee and to the Council, within one year following the entry into 
force of this Regulation and where appropriate every year thereafter, a report on the 
use  of  financial  assistance  and  continuation  of  the  exceptional  occurrences  that 
justify the adoption and application of this Regulation. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  proposed  Regulation  lays  down  prudential  rules  to  manage  the  risks  related  to 
the loan portfolio (Article 6 and 9) 

2.2.2. 

Information concerning the internal control system set up 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

 The  proposed  Regulation  lays  down  control  and  audit  rules  (Article  13).  The  Commission 
shall ensure that the necessary provisions regarding controls and audits are provided for in the 
agreement  concluded  with  the  beneficiary  Member  State  for  the  purposes  of  implementing 
Union  financial  assistance  under  the  SURE  instrument.  The  rules  of  Article  220  of  the 
Financial Regulation apply. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  
[…][Heading………………………...………
……] 

Diff./Non-
diff.8 

from 
EFTA 
countries9 

from 
candidate 
countries10 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
Regulation (EU, 
Euratom) 
1046/2018   

[…][XX.YY.YY.YY] 

Diff./Non
-diff. 

YES/N
O 

YES/NO 

YES/N
O 

YES/NO 

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  
[…][Heading…………………………………
……] 

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
Regulation (EU, 
Euratom) 
1046/2018   

[…][XX.YY.YY.YY] 

YES/N
O 

YES/NO 

YES/N
O 

YES/NO 

8 
9 
10 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

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3.2. 

Estimated impact on expenditure  

[This section should be filled in using the spreadsheet on budget data of an administrative nature (second document in annex to this 
financial statement) and uploaded to CISNET for interservice consultation purposes.] 

3.2.1. 

Summary of estimated impact on expenditure  

EUR million (to three decimal places) 

Heading of multiannual financial  
framework  

Number 

In  accordance  with  Article  2(3)  of  the  proposal  for  a  COUNCIL  REGULATION 
laying  down  the  multiannual  financial framework  for  the  years  2021 to  202711,   the 
necessary  amounts  shall  be  mobilised  over  and  above  the  ceilings  laid  down  in  the 
MFF 

Year 
N12 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

DG: <…….> 

 Operational appropriations  

Number of budget line 

Number of budget line 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes13  

Number of budget line 

TOTAL appropriations 

Commitments 

(3) 

=1+1a 
+3 

11 
12 
13 

COM/2018/322 final - 2018/0132. 
Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

EN 

22 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
for DG <…….> 

Payments 

=2+2a 

+3 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

TOTAL appropriations  
under HEADING <….> 
of the multiannual financial framework 

Commitments 

Payments 

(4) 

(5) 

(6) 

- 

- 

If more than one heading is affected by the proposal / initiative: 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

23 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to three decimal places) 

DG: <…….> 

 Human resources  

 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

Year 
N14 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

14 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

24 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations  

–  X 

The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type15 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 116… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTAL COST 

15 
16 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

25 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  X  

The proposal/initiative does not require the use of appropriations of an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 17 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 518 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
constraints.
allocation 

procedure 

budgetary 

light 

and 

the 

of 

in 

17 
18 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

26 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–  X  

The  proposal/initiative  requires  the  use  of  human  resources,  as 

explained below: 

Estimate to be expressed in full time equivalent units 

Year 
N 

Year 
N+1 

Year N+2 

Ye
ar 
N+
3 

Enter 
as 
many 
years 
as 
necessa
ry to 
show 
the 
duratio
n of the 
impact 
(see 
point 
1.6) 

 Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)19 

2 

2 

2 

2 

XX 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

1 

1 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 20 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

3 

3 

2 

2 

DG BUDG is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

Issuance of securities in the capital markets (market analysis, prospectus, registration, 
investors relationship), management of proceeds, disbursements and reimbursements 

19 

20 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

27 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
External staff 

EN 

28 

  EN 

 
 
3.2.4.  Compatibility with the current multiannual financial framework  

–  X  

The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

[…] 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

[…] 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

EN 

29 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3. 

Estimated impact on revenue  

–  X  

The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative21 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

21 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25 % for collection costs. 

EN 

30 

  EN